Why Income Equity is Important to Diversity Being Included and Belonging

We are all now living with the pandemic for nearly an entire 12 months. Locking down is no longer a unique occurrence, and any assumptions I might have had about how the global pandemic would affect females have been soundly kicked to the curb. When we were first told to work from home, our first thought was one of hope. If then both caregivers, and obviously then I am implying that homes with two employed parents, were not commuting, then probably this would recalibrate the household work plus childcare tasks? That we might notice a change as now both obtained those chores upon themselves equally.

Well global payroll was incorrect.

The pandemic far from becoming a fair equalizer has pushed women not only out of the workplace but is also affecting them more significantly. As observed by the World Economic Forum’s document Women in the Workplace 2020, at year end of 2020, tens of millions of mothers were thinking of retiring from the workforce for good.

Elsewhere, a UK report found that females were 150% more likely than fathers to have either lost their job or resign since the lockdown started. Minorities and women of color are even more negatively affected. The report states that “associated with females overall, Latinas are more likely to worry about firings and furloughs. Additionally LGBTQ+ women are nearly twice as likely as employees overall to cite mental wellness as one of their biggest issues during the pandemic.”

One of the primary reasons for these dramatic employment loss numbers? McKinsey’s analysis observed that women’s employment are 1.8 times more at risk to the crisis than men’s. One cause for this is that so many females are working in markets destroyed by covid-19. The hospitality industry employs more women than men.

It is not merely in the economic arena that females are suffering. Information from the UN reveals an increase in reports to domestic violence phone banks across the globe.
Why pay equality is more critical than ever

However, there is an additional issue at work here. Many times the main reason a female is the one to give up her employment is purely economic. Who makes more payroll? When both parties are working, it is common sense for the person with the higher income to stay in their employment and the other one to resign. There is where the problem begins since, as we all know, the amount of earnings inequality is astounding.

Observing the most current information, in 2020, females earn only $0.81 for each dollar a man earned. The managed gender payroll gap, which considers metrics such as job title, length of experience, industry, and location, found that women earn $0.98 for every $1 a man makes. While within this controlled information, the biggest gap is between the pay of black women and Caucasian men. As disclosed in the publication, African American women make $0.97 for each dollar a white man with equal qualifications makes.

At initial glance, this seems to show that the differential in earning power is relatively low when you compare like with like. But, it’s more subtle than that, and that is why it requires our attention. While men and women on the equal level may receive similar compensation, the issue is that there is empirical evidence that men get advanced at a quicker pace than women. The higher up the corporate ladder the higher the compensation, and there lies the challenge. That is why it is not simply the salary that we should consider – by determining anticipated raises awarded across a 40-year career, women stand to lose $900,000 on average over a lifetime.

Research shows that when women have kids it negatively affects their earning potential. The so-called “Motherhood Penalty” leads to employed mothers being perceived as less committed to their employer and requiring a more flexible schedule. Statistics reveal that the pay gap is significantly higher for women with kids.
How payroll analytics can raise awareness about gaps at your business

Whilst several factors contribute to pay inequities, one of the ways to control it is by finding where the gaps are and then seeking to close the gap. Several employers are not aware that there exists is a difference. A part of the issue is lacking the information, a lack of understanding regarding current pay scales. From a 2020 report, we see that more than half (56%) of those studied claimed their employers don’t have a formal process to control pay equity, while 70% do not use payroll structures to manage pay.

To battle this information disparity, and as part of their offering for customers who are located in the UK, Immedis created a robust report that clearly shows the way an organization pays its workers based on gender and age.

From measuring the issue, organizations could make educated actions about how to change and acquire payroll equity.
As well as the country by country analysis, Immedis also provide global data for Gross and Net payroll.
Why it is critical to study data

Apart from the point that it’s a lawful mandate in the U.K., there’s also the inherent bias existing for tangible proof.
In closing, workers demand proof. Without data and robust visualizations, it is easy to assume that everything is acceptable and that you are doing right by your employees. With the data, companies can get a better knowledge about how they are paying their workers and if there are any glaring differences, which they can then address.