A recent report from the Society for Human Resource Management reveals that over 70% of HR professionals acknowledge the existence of discrimination against women in the labor market.
Despite efforts to address pay equity, disparities persist in how pay equity audits are conducted. Gender is considered in only 80% of audits, while race and age are included in 68% and 62% of audits, respectively, according to the report.
Johnny Taylor, Jr., president and CEO of SHRM, highlights the need for greater awareness and action regarding pay equity issues within organizations, noting a disconnect between awareness and training among HR departments.
Although 81% of HR professionals express confidence in their organization’s commitment to pay workers equally regardless of demographic factors, the report reveals gaps in training, particularly for people managers. Only 68% receive formal training on making business-related pay decisions, and a mere 36% receive training on the importance of pay equity.
Despite progress, there is a persistent belief among women that they are not being fairly compensated for their work. A Glassdoor survey found that about two-thirds of women feel they are not paid fairly in 2024, an increase from the previous year. Additionally, a significant percentage of employees express dissatisfaction with the lack of female representation in leadership roles, particularly among Generation Z workers.
While pay transparency has emerged as a potential solution to narrow the gender pay gap, it is not a comprehensive remedy. Research by the University of Delaware suggests that factors such as aggressiveness, competitiveness, and social comparison can influence how candidates negotiate salaries during the hiring process.
Employers are increasingly recognizing the importance of addressing pay equity, citing reasons such as ethical considerations, building trust, and mitigating legal risks. However, transparency remains a challenge, with only a minority of companies sharing pay equity analysis results with employees and communicating their efforts to address pay equity.
