How Pay Transparency Can Help Close The Gender Pay Gap
Experts believe that increasing pay transparency will help close the gender pay gap that has long held women behind. Specifically, in the United States, women are paid on average just 82 cents for every dollar that a man earns. When employers and organizations have increased pay transparency, however, it has been found that the pay gap shrinks. Imagine what could occur if pay transparency was the norm and not the exception! But how exactly does pay transparency help close the gender pay gap? More often than not, pay gaps begin at the beginning of a woman’s career and continue to deepen over time when employers base new salaries on previous earnings, or when a woman requests a lower expected salary due to past inequities and lack of transparency regarding what the role pays for others. Moreover, bias and discrimination in hiring can also perpetuate the gender pay gap. But when transparency is increased, it helps to eliminate those negative behaviors and provide a more fair and open exchange in compensation. Simply put, pay transparency is about access to information. When pay is transparent, it allows for a more open and fair dialogue and setting of expectations to help level the playing field between men and women.