Research

Ask Catalyst Express: The Gender Pay Gap

Aug 26, 2019

The gender pay gap is a global challenge created by issues affecting pay equity and pay parity. Pay equity means equal pay for work of equal value. Pay parity means that there are equal numbers of women and men represented at each pay level across the organization. Both pay equity and pay parity need to be addressed to close the gap.

The pay gap affects all women, although women from underrepresented racial and ethnic groups experience the largest gap. Older women, the definition of which varies by country, also experience a greater gap. Some governments have introduced and passed legislation to try and close the gender pay gap, such as pay transparency requirements, the prohibition of salary history disclosures, and wage or salary reporting by gender—all with varying degrees of success. While these efforts have been shown to narrow the gender pay gap, it takes a holistic organizational approach to close the gap and keep it closed.

Progress has been slow. It’s time to make good on the promise of pay equity and parity. And it’s time to build inclusive workplaces where women and men are given equal chances to succeed and earn equal pay for equal work.

Catalyst Resources on The Pay Gap

Blogs

Case Studies

Gap Inc.—Women and Opportunity Supporter Exclusive (see also: Japanese translation)
PAY EQUITY:
“Gap Inc. also believes strongly in gender pay equality and in paying people based on the work they do and the value they bring to the company. Gap Inc. became the first Fortune 500 company in the United States to publicly disclose and validate that it pays women and men equally for equal work.”
PAY PARITY:
“Thanks to Gap Inc.’s long-standing commitment to inclusion, between 2007 and 2015, women’s representation at the Vice President level increased globally from 44.0% to 49.7%. In the United States, representation of women of color increased from 28.0% to 34.4% among all employees and from 20.4% to 23.9% among store managers, managers, and senior managers. At the most senior leadership level—those reporting to the CEO—women’s representation has gone from 33.0% to 77.0%, and women of color comprise four out of the 10 women.”

Telstra Corporation Limited—Next Generation Gender Diversity: Accelerating Change for Women Leaders Supporter Exclusive
PAY EQUITY:
“Since 2007, Telstra has conducted companywide, comprehensive reviews to close the gender pay gap, while still rewarding all employees equally on the basis of experience and performance.”
PAY PARITY:
“Next Generation Gender Diversity has delivered solid increases for women leaders at Telstra and in the community: for women in the pipeline (general managers, area managers, and managers), total share of promotions grew steadily from 29% in 2006 to 41% in 2009. Representation of women on the CEO Leadership Team increased from 6% to 31%, and the number of women corporate officers has grown from 31% to 35% during that same time period.”

Quick Take

Women’s Earnings—The Pay Gap

Spotlight Story

Avon: “The Company for Women” Continues to Put Women First
“In 2014, the company launched its Global Women’s Strategy, the culmination of a year-long, data-centered effort to better understand how it was faring as an employer from the perspective of women employees. The result was a strategy, applied across 11 geographies covering over 70% of the workforce to date, that redoubled Avon’s efforts to support women across several key action areas: benefits, flexible work, talent development, and pay equity.”