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In the United States, women on average earn about 80 cents for each dollar paid to men, but the disparity in pay among Black, Latina and Native American women is worse than among all women, according to the National Women’s Law Center’s analysis of 2018 Census Bureau data.
Black women, for instance, get 61 cents for every $1 that their white male counterparts are paid. The difference over a 40-year career would mean earning about $946,000 less, according to the research. Regardless of the country you’re in, statistics show the data is similar.
It is tempting to offer a candidate a salary you know they will accept, rather than what the job is actually worth.
Thankfully, it is now illegal in many regions of the United States, as well as several other countries to make that mistake. The laws are currently changing and evolving, and you should be aware of the applicable laws and guidelines when it comes to equal pay.
The good news for your company is your competitors are making these mistakes.
As candidates do their research, they are learning which organizations pay fairly and avoiding those who don’t.
Suggest to your hiring managers that they use market rates and objective measurements around the value of the role instead of prior pay history and subjective factors when setting salaries.
Don’t ask candidates about their prior salary history because of current restrictions enacted within the United States.
And in Europe, while there have been restrictions on asking questions about prior salary for a long time, the lack of transparency around pay has actually made it easier for unequal levels of pay to go undetected.
Implement unconscious bias training in your organization, but don’t stop there. See how you can put it into practice every day, this will increase your awareness of the ways that bias creeps into the hiring process and provide actionable ways to prevent it.
While you may not be able to get your company to publicly commit to expanding the recruitment and promotion of women, you can make it a goal for the individuals you manage. You can also make it an individual goal.
Candidates want to know that you are committed to transparency, fairness and equity, regardless of gender.
So make yourself accountable. Track your recruiting stats and offers to see if you have alignment and if not, course correct. Just by doing that, you are more likely to ensure your actions are gender balanced because you are making yourself aware, keeping yourself accountable and maintaining a spotlight on your process.
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Leading at the intersection of diversity, inclusion, and workplace culture, Stacey focuses on recruitment and career development initiatives. She is CEO of Rework Work, where she delivers keynote speeches, consults with organizations, and develops educational content that engages professionals globally, both in-person and in a virtual environment. She focuses on reworking how companies work; including how they inclusively recruit, hire and engage employees, effectively creating inclusion and belonging for all.