Sabina Mehmood, pay equity leader at XpertHR, on how to close the gender pay gap and why equity and equality are not the same but should both be prioritised.
As you may know, International Women’s Day falls on the 8 March. Every year, companies around the world issue bland, uninspiring statements about how great women are and why the STEM industry needs them. Some of the more brazen ones might even stretch to call women’s ‘contribution’ to the workplace ‘invaluable’.
Are women invaluable because the gender pay gap is so pronounced? According to Sabina Mehmood, pay equity leader at XpertHR, the gender pay gap problem stems from the lack of representation of women in STEM. “The STEM sector is still heavily male-dominated globally,” she says.
Systemic barriers on the road to nowhere
“Beyond just representation in these roles, there is significant data to suggest gaps and barriers to women and girls in STEM before even entering the workforce – these systemic barriers in access and education set an uneven foundation, perpetuating pay gaps down the road.”
Both are self-fulfilling prophecies, essentially. Mehmood does not agree with having ‘gender-blind’ policies, or policies that don’t take gender into account when considering remuneration.
“Taking a gender-blind approach will not address pay equity and pay equality gaps that we have today.” What does she mean by equity and equality?
“Pay equity and pay equality are related but mean different things.” They are both important in her view. “Pay equity is about providing fair compensation for work of equal value, regardless of gender or other protected characteristics.” That’s the gender-blind approach. “Pay equity also addresses the root causes of pay disparities, such as discrimination, bias and a lack of opportunities.”
“Pay equality more broadly focuses on addressing the systemic barriers, policies and practices that stand in the way of achieving pay equity.
“Pay equity and pay equality are both important and necessary to solve equity gaps and create an inclusive and diverse workplace. Employers who prioritise fair compensation practices have a more engaged and higher performing workforce.”
Although she advocates for both equity and equality, Mehmood says, based on the data, that employers must pay attention to pay disparities that affect women. Let’s take a look at some of that data.
Let’s crunch the numbers
Data released yesterday (20 March) by PwC showed Ireland has recorded a 1.4pc improvement in the mean gender pay gap. The report is based on gender pay gap data disclosed by more than 550 Irish employers.
While progress was made, there were still notable pay gaps recorded in industries such as aviation, engineering and construction. Just over two-thirds (67pc) of companies in the data set disclosed a gender pay gap of more than 5pc.
For wider context, the EU average gender pay gap is 12.7pc, according to Eurostat data from 2021.
When Ireland made gender pay gap reporting mandatory for large employers here, we found several tech employers reported less than ideal pay conditions for women workers. In response, companies promised to invest in outreach programmes aimed at women and in internal promotions to encourage women to take more senior leadership roles.
Fewer talking heads, more effort needed
Mehmood says more action and fewer words is what’s needed. “Employers need to be proactive and regularly analyse pay data to identify disparities to overcome them. Transparent reporting helps highlight areas where the pay gap exists and allows for targeted interventions.
“Once root causes of pay gaps are identified, which may include gender bias, only then can employers implement checks and balances to ensure a truly gender-blind approach. Employers should also continuously assess the impact of policies aimed at reducing the pay gap.”
So, what kind of actions can employers take? Is making their gender pay gaps disappear going to be very difficult? “Step one is getting the basics right: laying the foundations with the best tools and work processes and ensuring they are being carried out correctly and on a regular basis,” says Mehmood.
“Only by conducting ongoing equity analysis, quarterly or every other month, can businesses stay up to date on pay fairness within their organisation.”
Tech can’t save us…
She points out that tech can automate the reporting of pay equity analysis data, which she says companies often cite as a “barrier to achieving fair play” because of the complexity of the process. Tech can provide personalised insights and in-depth analysis, which helps HR and compensation leaders identify pay inequalities within their organisation pretty seamlessly.
Unfortunately, machines cannot remove systemic barriers like massive childcare costs and stereotypes which work against certain groups. They can only show employers the data. Making them – and, by extension, all of us – face up to the facts that women are undervalued in STEM is proving to be a lot more of a challenge.
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