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Big Questions about the Equal Pay Gap — Holiday Coffee Talk

The last Coffee Talk of 2022 focuses on the big questions: Where does the equal pay gap come from? Are there any patterns? Margrét and Henrike discuss and give helpful advice for companies on their pay equity journeys.

Big Questions about the Equal Pay Gap — Holiday Coffee Talk

For this holiday coffee talk, Henrike asks the big question: Where does the equal pay gap come from?

The answer is: it depends!

The equal pay gap, Margrét says, is “not equally smeared over the whole organization. There are pockets with more bias than others.” The pockets can be job roles, grades, locations... There are also no patterns — no job or organization types with bigger gaps.

So how can these “pockets” best be fixed?

Margrét says managers often focus on the workers whose pay is lower than expected given their job roles. But that’s only part of the picture. The gap “is not from a lot of women falling far from where we’d expect them to be — it’s from a lack of well-paid women.”

For example, in many organizations, 50% of male workers are paid at or below what they would be expected to earn. The other 50% of male workers are paid more than expected. But for female workers, about 65% are paid at or below expected and only about 35% are paid more than expected.

This means that yes, the organization will need to give raises to underpaid workers. But it will also need to address the lack of well-paid women. Progress can be made by coming at the problem from both sides.

Watch the coffee talk below

Friday Coffee Talk from Planet Fair is a YouTube series co-hosted by PayAnalytics founder Margrét Bjarnadóttir and her friend Henrike Von Platen, founder and CEO of the FPI Fair Pay Innovation Lab in Berlin.


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Ireland Rolls Out New Pay Equity Law
Artículo

Ireland Rolls Out New Pay Equity Law

This summer, Ireland implemented a far-reaching pay equity legislation, the Gender Pay Gap Information Act 2021. This legislation requires employers to begin reporting on their gender pay gaps. Companies will need to report differences in the mean and median pay between male and female employees. And if there’s a pay disparity, the company will need to provide a written explanation for it and outline any steps planned to close the gap.