The Gender Pay Gap: Unveiling The Truth and Debunking The Myths

The gender pay gap is a long-standing situation that has in no way been resolved. Exacerbated by the pandemic, we’ve seen how fragile the scenario is for women. Research by RBC in 2020 showed lockdown regulations that led to the economic downturn forced women to lose their jobs with a slight chance to recover.

After the unfolding of COVID-19 subsided, the Bureau of Labour Statistics of the US stated that women’s participation in the work industry has expanded to the highest level, which is 75,3%. But all this data still leaves numerous questions unanswered. Does the increased number mean that the root of the gender pay gap is finally being eradicated? How about the myth associated with the gender pay gap debunked?

More women in the workforce is not directly proportional to the company's desire to provide higher wages. Although the Diversity, Equity, and Inclusion (DEI) system in the workplace has been linked to the improvement of doubled EBIT margins, doubled total shareholder return, and tripled revenue growth.

This article can be a guide for Human Resources (HR) who need to understand the complexities of this issue before building a system based on DEI to make the workplace safer and more equal, especially for women.

In short, the gender pay gap is the state of inequality in which average women earn less than average men. Simply put, no equal pay for both groups. As stated by the Economic Policy Institute, no matter what measure tools are used, there will always be a wage gap between these two genders.

To emphasize, this differential treatment in the workplace between two genders has nothing to do with education levels. Women with the same education or position as men are still paid unfairly. If you try to find the real measure of how little women are paid, you’ll come up with this number: for every dollar earned by men, women are paid only 82 cents per hour in 2022. So, what is the real gender pay gap?

As we enter the 21st century, the statistic of rising wage parity has come to a halt. According to Pew Research Center, women between the ages of 25 and 34 could earn 92% as much as men their age. However, as women got older, their pay dropped to 83% (for ages 35 to 54) and continued to drop to 79% for women ages 55 to 64.

The gender pay gap is real, so it's time to raise awareness and understanding of gender identity. Only then can we achieve an inclusive environment that is safe and equal, especially for women. There are number of benefits for business too:

1. Job and Company Satisfaction

Understanding, accepting, and respecting each other's position regarding gender identity are critical parts of the work industry. Employees can become more motivated and engaged in their work.

2. Reduced Stress and Anxiety

Biased treatment, unequal opportunities, and stagnant careers based on gender can increase stress and anxiety. In the worst scenario, a company may lose a valuable employee.

3. Increased Productivity and Innovation

Satisfied employees are going to innovate more productively. This ends in providing extra profit for the company.

Deciphering the root of the problems required a serious attempt. At least there are 4 points for debunking the gender pay gap we need to speak more about.

1. Motherhood Penalty

In 1963, the President of America John F. Kennedy signed the Equal Pay Act, a big leap for women workers. Then, in 1964, came the Civil Rights Act, which outlawed discrimination based on race, national origin, color, religion, and sex. The U.S. Government also passed the Pregnancy Discrimination Act of 1978 to protect pregnant workers and the Family and Medical Leave Act of 1993 for parents who want to take time off.

If the rules are in place why is there a gender pay gap? A biased opinion is that biological differences are the main factor. They said that women are naturally destined to do the motherhood work, without bothering to be paid for it. This opinion persevered in a lot of sectors. 

Pew Research Center found that having children makes women choose to work shorter hours. Applying to lower-paid jobs is an inevitable choice. They also consider putting their careers on hold to take care of the children. As for men, having children means receiving higher wages as compensation. But, the Department for Education in England begs to differ, finding that women earn less than men even before having children. Addressing these complexities requires ongoing attention and collective efforts to achieve genuine workplace equality.

2. Occupational Segregation

Another prejudice that has been around is that women don’t have the aptitude to negotiate and communicate, they lack self-confidence and have no credibility for hard work. Thus, the opportunities to work in higher-paying jobs such as STEM (Science, Technology, Engineering, and Mathematics) are more welcome to men. 

This social construct has had a profound impact on holding women back for centuries. While in fact, girls tend to outperform boys in primary schools and they don’t have different math skills in secondary school. This result is based on a review of 100 studies involving more than 3 million people.

Women are less attracted to this field because of the lack of role models. Not to mention the possibility of sexism they may face. As long as this belief about women being less suitable for STEM jobs persists, this cycle will never be broken.

3. Wage Negotiation Disparities

Many say women's reluctance to negotiate salaries is the reason for the gap. This has been debunked. According to the new studies published in the Academy of Management Discoveries, women are now bolder in asking for higher compensation. But the bargain they do doesn’t change the company policy to increase their pay.

The perception of women and their ability to negotiate has led many schools of business to focus on teaching negotiation skills. This curriculum has been evolving for 20 years to help women achieve better positions in the workplace.

4. Unequal Opportunities for Advancement

In 2021, many female recent graduates were surprised that the bias they received was much higher than they imagined. Meanwhile, mid-career women continue to confront three fundamental biases in the workplace:

McKinsey & Company's Global Institute report, published in 2020, found that gender parity has a greater impact on improving the economy and society. Closing the gender pay gap could add at least $12 trillion to $28 trillion to global GDP.

We understand that the reasons for the gender pay gap are systemic, involving political ideology, racial bias, discrimination, and economic motives. To reduce this gap, women can start by implementing these tips:

Know your value

Knowing your worth is crucial to knowing yourself. Then, you will not be easily shaken, you'll have bargaining power in the work industry, and you will know exactly what you want.

Practice your pitch

It’s showtime to present yourself in front of people. Learn how to speak in public to capture attention and earn respect from others.

Nurture continuous learning and growing

Navigating the gender pay gap can be challenging and demanding, but it's essential to persevere. Continuous learning and personal growth are key factors that can contribute to enhancing your professional value.

You can also share the same concerns about the way to debunk the gender pay gap with other female employees. Build allies, cultivate relationships of trust, and then strengthen your positions and the positions of other workers. Don't worry, these tips apply to everyone!

In conclusion, the gender pay gap is undeniably real, a concern not only for recent graduates but for the broader public. The pandemic has underscored the vulnerability of women's economic positions. Unfortunately, progress in closing the wage gap has been slow, especially as women age. Efforts to dispel the myths surrounding the gender pay gap have highlighted significant workplace challenges, including the motherhood penalty, occupational segregation, wage negotiation disparities, and limited opportunities for advancement. To address this issue, it is crucial for individuals to recognize their value, refine their negotiation skills, commit to continuous learning and growth, and foster alliances with fellow female colleagues. These actions collectively contribute to narrowing the gender pay gap and advancing towards a more equitable future.

— Originally Written by Erika Rizqi Rachmani —