Salary transparency, closing the gender pay gap and encouraging people to #ShareYourPay were the key themes covered in Glassdoor’s Pay Equality Roundtable yesterday.
After Glassdoor’s pioneering event with presidential candidate Hillary Clinton (and other key leaders), we’ve identified five key takeaways, which, if addressed, can make a positive difference to your company. This critical discussion comes at a time when the gender pay gap is top of mind, not only across the UK, but with employers and employees from around the world. Nine in 10 employees across seven countries believe men and women should be paid equally for equal work, according to a recent Glassdoor survey, yet a sizable wage gap still exists. New research from Glassdoor Economic Research revealed that the gender pay gap is real and significant—5.5 percent in the UK—even after controls for education, work experience, location, industry and even job title and company are applied.
So what did we learn?
Salary transparency is good for business
Transparency in the workplace will breed productivity and fairness. Glassdoor’s CEO and co-founder Robert Hohman claimed: “In the highly competitive war for talent you are cutting out your access to the best people if you continue to ignore this issue. The world is not going to get less transparent.” Dan Henkle, president, Gap Foundation & SVP of global sustainability of Gap Inc added: “From the very beginning, we’ve had female senior leadership around the table. Today, 4 out of 5 of our brands are led by women. But you don’t get to pay equality by accident – you really have to be thinking about your promotions, your hiring, your pay decision – you actually have to think about it every step of the way.”
Transparency is crucial to this success.
Salary transparency is vital to achieving equal pay – take the pledge now
Nine in 10 employees believe men and women should be paid equally for equal work and experience and three in five employees would simply not apply to work at a company where a pay gap exists. You as a progressive company can stand out by taking a stand and doing what more than 1,800 employers have already done – take the Pay Equality Pledge on Glassdoor, indicating a corporate commitment to pay employees equitably for equal work and experience.
Sharing pay will make a difference to employee satisfaction
According to Tracy Sturdivant of Make it Work we are currently in a “perfect storm of instability”. She goes on: “The choice is with the employers, not the women. There needs to be a cultural shift, pay must be shared and we should all be comfortable having that conversation.”
Sharing pay will result in better negotiation and employers shouldn’t be scared of that. The best way to talk money is by backing it up with data, a process being driven by Glassdoor, and the millennial generation of employees.
Employers have a choice – be comfortable having the conversation
Hillary Clinton added: “CEOs and board members need to ask themselves, how sure are we that it’s fair. Encourage and incentivise so that employees want to discuss the issue and you as a company are more forthcoming. Research is absolutely conclusive.” Dan Henkle, president at Gap Inc said: “You can achieve equality only once you’re laser focussed on performance.”
Biggest myth is that these problems can’t be solved
The gap is explainable, but not justifiable.
Hillary Clinton stressed “with political will we can fix this.” She went on: “We as employees should demand transparency and the government has to encourage companies to be more transparent. Enforce the laws, use the federal government, be clear that there are intentional biases, and challenge yourselves to push for more.”
Video Replay: Watch the entire Glassdoor Roundtable Discussion and learn more about what can be done to reach pay equality.
The roundtable was moderated by award-winning journalist Diane Brady, most recently of Bloomberg. Other participants included:
- Hillary Clinton, former U.S. Secretary of State, former U.S. senator, former first lady
- Robert Hohman, co-founder and CEO, Glassdoor, Inc.
- Lori Nishiura Mackenzie, executive director, The Clayman Institute for Gender Research at Stanford University
- Dan Henkle, president, Gap Foundation & SVP of global sustainability of Gap Inc.
- Megan Rapinoe, World Cup Champion & Olympic Gold Medalist
- Tracy Sturdivant, co-founder & co-executive director of Make It Work