The gender pay gap (the difference between the earnings for men and women) for women of color is a serious obstacle to racial and gender equity. In the US, Black women and Latinas face the widest wage gap, according to Pew research, earning only 70% and 65% as White men based on median hourly earnings. White and Asian women earn 83% and 93% as much as White men, respectively. 1
With pay transparency laws changing across the US and UK, pay equity is now becoming a standard practice among leading organizations. More importantly, it is a key competitive differentiator for those looking to attract and retain key talent.
What causes this gender pay gap among women of color, and how can HR leaders and DEI practitioners work together to close it?
At the 2024 Catalyst Awards, Erin Souza-Rezendes, VP, Global Communications at Catalyst sat down with Google leaders Melonie Parker, Chief Diversity Officer and Rachel Spivey, Director of Retention & Progression (Stay & Thrive) Team to talk about how Google is creating pathways to pay equity for women of color.
Here are five lessons we learned:
- Make compensation analysis business-critical. Equity starts at the top, and ensuring that comp analysis is fundamental to your strategic priorities gives pay transparency the gravitas it deserves.
- Look at fairness holistically. Companies must invest in pay transparency to better understand the pay equity gap and do it continuously. Pay transparency is also just one component. Companies must also consider the role a person plays, their location, benefits, and other factors that could impact their pay.
- Identify moments where inequity may be reinforced—and do something about them. Melonie’s team looks at each step of the employee’s journey to identify moments or places that might create or compound inequity. For example, at each level, Google does a salary reset so that when team members enter the organization at different levels, that inequity doesn’t compound once they are promoted. Similarly, her team schedules its compensation analysis so it aligns with annual merit and promotion increases.
- Help team members understand the system. Many people take it for granted that employees understand performance evaluation systems and how salary bands and role expectations are structured. HR leaders and managers need to communicate how these systems work so employees can invest in the progression path that best suits their needs and lifestyle. Google takes this a step further with their Stay & Thrive program, which provides one-on-one guidance to employees, creating a process where an employee can feel heard and supported.
- Don’t just guide, advocate. Having a mentor to help guide you through critical career moments is important, but people also need advocates who have access to the right rooms and conversations. At Google, the Stay & Thrive team works across the organization to advocate for the employees in the program.
Endnote:
- Kochhar, R. (2023, March 1). The enduring grip of the gender pay gap. Pew Research Center.
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