Bridging the Gap: Practical Strategies to Address the Gender Pay Gap
Bridging the gap: Practical Strategies to Address the Gender Pay Gap
Companies in Ireland are required to report on their Gender Pay Gap (GPG) on a yearly basis since December 2021. In 2024 this requirement covered companies with one hundred and fifty or more employees and in 2025 will apply to companies with fifty or more employees. The Gender Pay Gap is the difference between the average hourly pay of men and women in an organisation. It is different from equal Pay for equal work (covered by the Anti-Discrimination (Pay) Act 1974). One of the key reasons for a Gender Pay Gap in a company is men holding more senior (and higher paid) roles than women. Other factors include ‘the motherhood penalty’ and ‘the fatherhood bonus’.
With the EU Directive on Pay Transparency (introduced in May 2023), organisations need to ensure transparency in pay structures. Employers will need to share information on pay range for vacancies and cannot ask job seekers about their previous salary (as was already the case in the US). Employees can seek information on pay levels of colleagues doing similar work. They will also be able to ask for clarification on gender pay differences. Ireland has until June 2026 to implement this directive into law. This article shares some practical things we can do to address the gender pay gap, and create more inclusive workplaces, where all feel a sense of belonging.
3 ideas to improve gender representation in leadership roles:
1. Data: When someone says DEI or gender equity has gone too far, just look at the data. What does the data tell us? 30% Club Ireland end of year report 2024 spoke about the need to get beyond the averages. Roles of influence and revenue generation roles matter. Who gets to influence key decision making? Get curious about recruitment data. Who is falling out of the process and why? Look at retention data. Who is leaving the organisation? Surface the real reasons instead of what is convenient or what might be shared in an exit interview where people don't want to burn bridges.
2. DEIB (Diversity, Equity, Inclusion & Belonging) as a business priority: Dissonance between an organisation’s talk and walk is a key reason employees disengage. It is important to set meaningful goals which all leaders are held accountable for. The tone must come from the top – it needs to be part of the organisational strategy. DEIB cannot be a side initiative – it needs to be embedded in everything the business does. Each employee must understand their agency and how they can play a part in the space they operate in. Small positive changes can have a cumulative impact.
3. Male allies and sponsors: Men need to be part of the gender equity conversation: As men hold the majority of leadership roles, it is vital that men play an active part in creating meaningful progress. This involves moving away from zero sum thinking towards building an understanding of how inclusive workplaces benefit everyone. Lack of flexibility is one of the key reasons many women decide not to seek out a more senior role. Increased flexibility for all genders can be helpful to women but also offers benefits to men and to wider society.
Amy Kean said in a recent article said "As a middle class white man, if you’re not involved in diversity efforts, then you don’t want diversity." Sometimes men want to get involved but are unsure what to do. Men and those in positions of privilege, need to play an active role in educating themselves about the challenges faced by marginalised groups. Sponsors are those who speak about and advocates for those who are not in the room. Mentorship matters, but it is said that women are over mentored and under sponsored. Often those in the ‘in group’ naturally get sponsored. It is important to be intentional - everyone needs sponsors!
Pay adjustments
When women receive pay adjustments as a result of a pay review, they may initially be delighted to get a pay increase. However, a realisation might later kick in that they have been underpaid, often for quite a while. There may be a sense of loss, frustration, sadness, or anger. They may have been struggling financially, and being underpaid may have meant a decision not to have another child, not to move house, not to go on holiday, not to invest in their learning. Yes, it is great that they are now being paid more fairly but it is important to understand and be empathetic about how they may be feeling. Ideally, pay adjustments should be back-dated. At a minimum, it is important to rebuild trust. This will require accountability and transparency, and demonstrating what steps will be taken to ensure this won’t happen again.
References & Further information:
o The motherhood penalty and fatherhood bonus: https://www.weforum.org/stories/2024/06/multinationals-can-close-parenthood-wage-gaps/#:~:text=The%20%22fatherhood%20bonus%22%20refers%20to,compared%20to%20men%20without%20children.
o 30 percent club Ireland - https://30percentclub.org/chapters/ireland/
o Michael Kimmel TED Talk Why gender equality is good for everyone — men included - https://www.ted.com/talks/michael_kimmel_why_gender_equality_is_good_for_everyone_men_included/transcript
o Research on Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance
o Torchia, M. et al. (2010) ‘Critical mass theory and women directors’ contribution to board strategic tasks’, Corporate Board role duties and composition, 6(3), pp. 42–51. Available at: https://doi.org/10.22495/cbv6i3art4
o https://www.mhc.ie/hubs/legislation/eu-directive-on-pay-transparency
Data:
o UNESCO: https://www.unesco.org/en/science-technology-and-innovation/gender-equality
o Women CEOs: https://www.irishtimes.com/business/2024/05/01/ireland-left-with-zero-female-listed-ceos-after-ires-switch/
o CSO - https://www.cso.ie/en/releasesandpublications/ep/p-mip/measuringirelandsprogress2022/
