Claudia Goldin recently became the first solo woman to win a Nobel prize in economics, and her award-winning research focused – fittingly – on women's employment and pay. Her work highlighted the fact that even now there still exists a substantial pay gap and a problem with gender equality in the workplace.
The issue of gender inequality in the workplace is still topical in 2023. Low wage roles are still on average occupied by more women, while men are overrepresented in executive roles. The UN estimates it will take 108 years to close the gender gap, an unacceptable delay that impacts women, companies, and society. How can we make faster progress to reduce gender inequality?
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Gender equality in the workplace is established when everyone, regardless of gender, has equal access and opportunity to thrive at work. Gender inequality can occur as the result of pay disparity, unequal promotion, and sexual harassment, among others. Tackling gender inequality is an important part of improving diversity, equity, and inclusion at work. As more companies focus on curating an inclusive and diverse work culture, it’s crucial they include women in their considerations, to improve equality.
Equality in the workplace is important for societal progress but also for companies. Women have enormous potential and their underrepresentation in higher wage roles or executive positions is a loss for everyone. Women shouldn’t be expected to wait another century for equality in the workplace, and we should all take steps to improve women’s outcomes now.
The following are some of the components to gender equality in the workplace:
Women have always struggled to get paid equally for the work they do. Although the gender pay gap is closing, it will still take decades to be fully equivalent.
Equal access is another important part of equality in the workplace. This means that women should be considered equally for advancement, promotions, and roles they are qualified for.
Women have long had to tolerate harassment and gender discrimination in the workplace, which can take many forms.
Since the biggest challenge to gender equality in the workplace is child rearing, flexible work arrangements are crucial to establishing equity and supporting parents.
Women are often left out of promotions and executive roles for many reasons, and upper leadership is dominated by men in every sector. Less gender disparity in leadership roles is another key part of workplace equality.
📚Further reading: How to be a Good Leader: Guide to Mastering Leadership!
Education directly impacts gender equality in the workplace. Male dominated fields aren’t short of women due to a lack of ability or interest, but because women are discouraged from pursuing education in those fields in subtle ways.
One way to combat the gender pay gap is with pay transparency. This openness to scrutiny encourages more fair and equal pay.
Gender equality in the workplace is important not just for workers, but for companies too. The larger societal implications of gender inequality are tangible, and the merit of establishing gender equality at work is something everyone should be aware of.
Why is gender equality important in the workplace? While establishing greater workplace equality is good for individual women, the effects of gender inequality are much larger than any one person. Increasing gender equality leads to safer, more stable societies. Not to mention, underpaid women meeting their full potential can increase GDP by nearly 30% globally, translating to huge economic gains for communities. Beyond the impact on society, corporations profit from gender equality in the workplace as well.
Here are just a few of the benefits of decreasing gender inequality at work:
Diverse and inclusive work cultures create countless opportunities for companies and individuals to grow and learn.
Gender inequality affects a company’s bottom line. Companies with more female executives are nearly 20% more likely to have better business outcomes.
Companies with more gender diverse hiring practices open themselves up to applicants with incredible talent and experience.
An inclusive and equal workplace increases morale, which leads to engaged and productive staff.
Staff who are treated and paid equally regardless of gender are less likely to leave their positions, resulting in lower hiring and training costs for companies.
Companies who have established gender diversity in the workplace also benefit from a greater reputation in their industry. This can lead to more opportunity, more clients, and attract more talent.
Improving gender diversity in the workplace can also increase your audience. Women at every age are consumers and potential clients, and employing other women who understand their unique needs can only grow your business.
Diversity and gender equality in the workplace can also lead to better decision making at all levels. When people from different backgrounds can contribute to company decisions, they can use their unique perspectives to arrive at unexpected conclusions.
What is today’s state of gender equality? When it comes to gender inequality in the workplace, statistics don’t lie. Globally, the gender pay gap is only about 70% closed, leaving much room for improvement. Even in the largest global economies, women make 88% of a man’s salary.
One reason for this entrenched inequality is the gender disparity in leadership roles. Although many women have ambitions for leadership, when it comes to promotions, almost half of all women in senior roles feel it was harder getting promoted compared to their male counterparts. This is reflected in the current stats: although American women make up nearly half of all entry level positions, they are in less than a third of all management roles.
Discrimination and bias contribute greatly to gender inequality. Here are a few examples of gender inequality in the workplace and their impact on people and organizations.
1. The gender pay gap is a real and ubiquitous source of gender inequality. Even in the same roles, within the same company, with the same responsibilities, women make less than men. In Denmark, women make an average of 7% less, while in Japan, that gap is as high as 26%.
2. Promotion can be subjective, and thus impacted by bias. One study showed that, although women had higher performance ratings than their male coworkers, they were given lower ratings for their potential, the result of which was that women were 14% less likely to be promoted.
3. Microaggression can impact women and their experience of gender equality in the workplace. These can come in the form of comments or behavior that create a toxic and frustrating work environment. For example, women might be subjected to pet names, feedback such as ‘too bossy’, or inappropriate touch.
4. Gender inequality often trickles from the top down. The leaders of an organization create their work culture and set policies, so if that leadership is lacking gender diversity, they are more likely to act on bias, or to overlook the needs of women in their company.
5. The decision to start a family impacts both men and women when it comes to work, but women are much less likely to be offered a promotion following the birth of a child. In fact, pregnant women are judged to be less committed to work than non-pregnant women.
There are many ways to advance gender equality in the workplace, and it’s time to look at a few initiatives in greater detail.
Companies can play an active role in nurturing female leadership by providing development programs for women in their employment. Programs might include mentorship or extra training to help women meet their full potential and accelerate their growth toward a promotion.
An organization that’s committed to equality in the workplace should offer training and workshops on gender equality. This could include programs on unconscious bias or general DEI training and should be available to everyone.
One way to combat gender inequality at work is to commit to recruiting women for roles or departments that have less female representation. Set clear goals for meeting a minimum target and look for creative ways to recruit women.
ERGs are a good step to improving gender equality in the workplace. These groups foster connections between underrepresented workers by examining current workplace practices and brainstorming solutions for existing problems.
Promotions can unfortunately be biased, and one way to ensure they are fairer and more equal is to have a clear and transparent rubric for promotion that is merit-based. For example, a promotion based on target performance is a potential way to exclude gender from consideration.
Your company should have a clear statement on equal opportunity, and it should be publicly stated in job posts and on company websites. This encourages women to apply and increases accountability.
Gender inequality can in part be attributed to child rearing, so providing resources for working parents is a good step toward gender equality in the workplace. Support can look like on-site childcare or even discounts and referrals to services. Consider how the roles in your organisation can be modified to be hybrid or work from home.
Every organisation should regularly review their policies and make changes as necessary. Gender-related issues like discrimination can develop over time, and your approach can change as you learn and grow.
Employees are a good source of information on their work culture and the effectiveness of diversity initiatives. Establish a way for employees to give their feedback on gender bias or discrimination at work. An anonymous reporting system is one way to allow reporting without fear of retaliation.
Women should be represented in leadership roles so their input can go into decision making, especially when it comes to policy changes and promotions. Look for ways to increase female representation on committees and panels.
Gender inequality in the workplace doesn’t just impact women. Clearly defined gender roles affect men and non-binary people as well. Gender non-conforming people are just as likely to be passed over for promotion, or to face discrimination at work. And men suffer from the weight of gender inequality in nuanced ways. For example, men are indirectly discouraged from taking paternity leave, something that is seen as traditionally female. Gender inequality has far-reaching consequences for everyone.
The future of gender equality looks bright, and recent developments have improved women’s outcomes at work:
Technology has contributed to decreased gender inequality in many ways:
As technology continues to evolve, we may see gender equality in the workplace improve faster than we imagined.
Despite our recent advancements, women will continue to experience challenges in gender equality in the workplace and will need to work as hard as ever to close existing gaps:
Gender inequality in the workplace is a real problem that impacts individuals, companies, and communities. Gender equality can be achieved with equal pay and access to opportunities, and the benefits can include increased company performance and more engaged staff. Although gender equality in the workplace statistics can be grim, countries and corporations are making progress toward a better future, and your own contributions at work can make a real difference.
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--- Originally written by Tiffany Quinn ---
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