Understanding the Impact of Pay Disparities

Equal Pay Day moved BACKWARD in 2025 to March 25th, revealing a harsh truth: transparency without enforcement doesn't create equality. 60% of job postings now include salary information—up from just 18% in 2020—yet women still earn just 85 cents to a man's dollar. Even more disturbing? The gap is widening. Of 98 countries with equal pay laws, only 35 have implemented any accountability mechanisms. We're seeing the illusion of progress without the substance. True salary transparency requires action at every level: For individuals: - Share your salary information with "trusted" colleagues - Explicitly ask for pay ranges before interviews - Document salary discussions and decisions - Normalize compensation conversations in your workplace - Research industry standards using sites like Glassdoor and Payscale For managers: - Conduct regular pay equity audits in your teams - Establish clear compensation criteria based on skills and responsibilities - Remove salary history questions from your hiring process - Advocate for transparent promotion pathways For organizations: - Implement formal pay bands with clear progression criteria - Regularly publish company-wide gender and racial pay gap data - Create accountability mechanisms for addressing inequities - Train managers on recognizing and addressing unconscious bias in compensation decisions The data is clear: companies with meaningful transparency see pay gaps narrow significantly in the first year alone. But posting a salary range isn't enough if there's no accountability behind it. Let's move beyond performative transparency toward meaningful equity. Please share this post if you think salary transparency should come with real action. Joshua Miller #SalaryTransparency #PayEquity #Workplace

Fixing Pay and Opportunity Inequities: A Call to Action One of the things we don’t talk about as much as we should is the opportunities gap.  The pay equity gap exists. Part of why it exists has to do with the fact that women don’t have the same access to opportunities as men.  Women are underrepresented in higher paying leadership roles.  And promotion gaps are also a part of the problem. So, when I hear that an employer has a plan for how they find, and fix pay equity gaps I am thrilled.  But then I ask about how they are going to find and fix the opportunity gap that exists, I often get asked, “What do you mean?” Recent research (“Potential” and the Gender Promotion Gap by Bensen, Li, and Shue), indicates that women, on average, receive higher performance ratings than men but are awarded lower potential ratings. This leads to women being 13% less likely to get promoted than their male colleagues. This disparity in promotion rates contributes to women staying lower level and lower paying jobs. As HR leaders, we need to address the root causes of pay equity gaps by determining what the biases are within policies and practices related to promotion, potential, and performance. No one should be receiving more favorable treatment based on gender, race, ethnicity, age, etc. related to pay, promotion opportunities, as well as the assessment of their potential and performance. According to the World Economic Forum (WEF), it could take 134 years, or five generations, to close the global gender gap. Remember, most employees have their pay, performance, and potential reviewed annually. That means that employers have three times a year they can move toward equity.  (Number of employees x 3 = Number of opportunities to move toward equity) Be intentional and move the needle toward equity every chance you get. Don’t ignore the pay and workplace opportunity inequities that exist because the conversations are uncomfortable.  Five generations is too long to wait for this to be fixed. https://lnkd.in/gcEQ2jSs #payequity #paytransparency #compensation #hr #humanresources #fairpay #genderpaygap #paygap #opportunitygap

Mastercard has agreed to pay $26 million to settle allegations that it systematically underpaid thousands of female, Black, and Hispanic employees. The settlement resolves claims that the company underpaid 7,500 female, Black, and Hispanic workers compared to their male and white counterparts for performing the same or similar work. As this case illustrates, allegations of systemic pay discrimination hit hard—financially and reputationally. As an employer, you can and should take steps to ensure fair pay practices. Not only because it's the right thing to do, but because it's critical to avoid costly lawsuits and foster a workplace of trust and respect. Here are 5 practical tips to get it right: 1. Audit Your Pay Practices: Regularly conduct pay equity audits to identify and address disparities. Ensure employees are compensated fairly, regardless of gender, race, or ethnicity. 2. Standardize Compensation Policies: Create clear, objective pay structures. Define pay ranges for each role and base increases on measurable performance metrics. 3. Train Your Managers: Educate managers and HR teams on unconscious bias and equitable pay practices to prevent unintended discrimination. 4. Be Transparent: Share pay ranges in job postings and salary discussions. Transparency builds trust and reduces misunderstandings about compensation. 5. Document Everything: Keep detailed records of pay decisions and their justifications. If a lawsuit ever arises, you'll have evidence to support your practices. The takeaway? Prevention is always cheaper—and smarter—than litigation. Invest in fair pay practices now to save yourself headaches, headlines, and your hoard of cash.

Women have been breaking barriers for generations—but pay disparities persist. The average working woman will have to work all of 2024 AND through March 25, 2025, to earn the same pay that a man in a comparable role will have earned during 2024. That’s gender pay inequity. And it’s even worse for Black and Latina women. As someone who has experienced gender pay inequity myself, I am passionate about speaking out and advocating to reverse this practice.  The most effective organizations don't just acknowledge inequities; they take action to eliminate them. Here are 5 steps to address discriminatory compensation practices and ensure pay equity: 💰 Audit your pay structures. Identify and correct pay gaps by conducting regular pay equity audits. Then don’t negotiate deals with new hires that negate your efforts to be more equitable internally. Transparency is key! 📊 Measure your results. Set clear goals, collect and analyze compensation data, and assess the impact of policies on women—especially Black and Hispanic women, who continue to face the widest gaps. 🏛️ Strengthen internal policies. Pay disparities don't fix themselves! Organizations must implement fair hiring, promotion, and salary-setting practices that prioritize equity. 🚀 Promote pay transparency. Secrecy around how salaries are set allows inequalities to persist. Clear, standardized pay bands help ensure fairness. ⚖️ Hold leadership accountable. Closing the wage gap isn't just an HR issue—it's a leadership imperative. Senior leaders must champion pay equity and commit to meaningful change. Women deserve to be paid what they're worth. The strongest organizations recognize it, talk about it, and (most importantly) take real action to make it happen. What steps are your organizations taking to close the gap? I recommend checking out these resources on the Association of Corporate Counsel website, expertly curated by Jean-Baptiste Pessey and his team, to learn actionable ways to make a difference at your company. https://lnkd.in/eeWd6Mvj #PayTransparency #PayInequality #WageGap #Compensation #Leadership

Why are we rewarding executives with bonuses while others lose their jobs? This isn’t just bad optics—it’s bad business. Awarding massive bonuses to executives after workforce reductions sends a clear, harmful message: profits over people. Research shows this approach undermines morale, productivity, and even long-term organizational success. Here’s the reality: • Wage gaps hurt engagement. The Journal of Labor Economics found that high pay disparities decrease job satisfaction and increase turnover. • Perceived injustice damages productivity. The Journal of Business Ethics shows disproportionate executive pay leads to disengagement and lower performance. • Inequality stifles growth. The International Studies Review links income inequality to slower economic and human development. Professional reports echo the consequences: • Companies prioritizing executive pay over employee well-being face reputational fallout (Financial Times). • The Institute for Policy Studies revealed that low-wage companies spent billions on stock buybacks instead of wages. It’s time for leaders to prioritize equitable compensation. Aligning executive rewards with company-wide success isn’t just fair—it drives better performance and fosters trust. What are your thoughts? Should leaders rethink how they reward success? #Leadership #Management #HumanResources #EmployeeEngagement #WorkplaceCulture #CorporateResponsibility #EthicalLeadership #CompensationStrategy #BusinessPerformance #OrganizationalSuccess

Yes, you do need to know what your peers are making at your job. Let me share a story about a client of mine, Sarah.* She is a highly qualified executive with a master's degree and over 15 years of experience in her field. Despite her impressive credentials and impact, she discovered that she was being paid significantly less than her colleagues—many of whom had similar or even less experience. I've also had many clients come to me because they see a newly posted job at their level with a much higher salary range. What?! This is unfortunately a common scenario. We all know about the gender wage gap - and we know this gap widens for Black women and women of color. ✨ The lack of pay transparency in many organizations perpetuates these inequities. ✨ When pay secrecy is the norm, it serves the company’s interests, not yours. It allows organizations to underpay talented individuals like Sarah while keeping their compensation practices opaque. This is not just a personal issue; it affects your career trajectory and financial well-being. ⚠️ Women are 80% more likely to be impoverished in retirement. So, what can you do? Here are some strategies to navigate this tricky terrain: 1. Have Open Conversations: Start by talking to trusted colleagues about their salaries. While it might feel uncomfortable, these conversations can provide valuable context. Frame it as a discussion about overall market trends rather than just numbers. 2. Research Salary Ranges: Utilize platforms like Glassdoor, Payscale, or LinkedIn Salary Insights to research compensation ranges for your role in your industry and location. This will arm you with data when negotiating your pay or discussing it with peers. 3. Create a Pay Transparency Culture: Advocate for pay transparency in your organization. Encourage discussions about compensation during team meetings or company events. When leadership embraces transparency, it can foster a more equitable workplace. 4. Know Your Worth: Prepare for salary negotiations by understanding the unique value you bring to your organization. Highlight your skills, achievements, and contributions during discussions about pay. Don’t let the fear of judgment keep you silent. Knowledge is power, and understanding your worth is crucial. It’s time to advocate for yourself and demand the compensation you deserve! 💪✨ #PayTransparency #EqualPay #WomenInLeadership #SalaryNegotiation #KnowYourWorth 

Yes, I do mind the gap. Not only because I'm in beautiful and vibrant London right now--but because today is #EqualPayDay and there is still a massive pay gap between men and women. How would you feel if you did precisely the same job as your neighbor but were paid 20% less simply because of your gender? Seems unimaginable, but this is the reality for millions around the world. And it’s not just about gender; the gap grows when factoring in race and ethnicity, leading to even greater inequities. 🌍 September 18 is the United Nations' "International Equal Pay Day," a reminder of the persistent and widespread gender pay gap that still plagues many industries. Forecasts show that this gap won’t close until 2048 at the earliest—or potentially hundreds of years longer for other industries. It's clear: closing the gender pay gap remains an urgent priority. The good news is there are actions you and your company can take right now to reduce the pay gap: 💡 Conduct regular pay equity audits – Evaluate pay across gender, race, and ethnicity to identify and address disparities. If this is not your role, ask your company's leaders about this. 💡 Implement transparent pay practices – Be open about salary ranges for roles and promotions to ensure fairness. 💡 Set clear benchmarks and accountability measures – Create measurable goals to reduce inequities, with leadership buy-in to drive results. 💡 Invest in mentorship and sponsorship programs – Support the career development of underrepresented groups to ensure access to higher-paying roles. 💡 Support work-life integration – Offer flexible work policies that benefit all employees, especially women who disproportionately shoulder caregiving responsibilities. 💡 Eliminate bias in hiring, promotions and much more – Use structured, unbiased processes to ensure equal opportunity for advancement. Train people managers on Inclusive Leadership. Beyond fundamental fairness, our research shows that companies that have successfully addressed pay inequities experience measurable improvements in key drivers of market performance, returns and employee loyalty. Closing the pay gap isn’t just the right thing to do—it’s a business imperative that drives results, growth and innovation. #GenderEquity #PayEquity #Inclusion #Leadership #Diversity #DEI

Women are working for free. For 2 months of the year - that's the equivalent salary the gender pay gap represents. That statistic shocked me. But what shocked me even more was realising it was happening in my own company. (This was 10 years ago) When we launched Flash Pack, pay transparency wasn’t a priority. And like many businesses, this led to unintentional gaps: → Women earning less for the same roles. → Unclear career paths creating systemic barriers. → And, effectively, women working “for free.” I was mortified. How could I have let this happen? That’s not the culture I wanted to build. So, we made big changes: 1️⃣ Removed salary negotiation to eliminate bias. 2️⃣ Openly advertised salaries to ensure fairness. 3️⃣ Built a clear, objective performance framework. 4️⃣ Created two equal career tracks with equal pay. The result? Built a culture of fairness and trust. Eliminated pay gaps across every role. Created a workplace where employees feel valued. Pay transparency isn’t just about the numbers. It’s about building a business where fairness fuels trust, and trust fuels success. Because pay equity isn’t just good business. It’s the right thing to do. Agreed? What tips would you add to address the gap? ♻️ Repost to share this message. _ 👋🏽 I'm Radha Vyas, CEO & Co-Founder of Flash Pack, connecting solo travelers on life-changing social adventures. Follow for daily posts on the journey!

Pay discrimination is real. And it’s also blown out of proportion relative to the problem — because many people don’t know this: Most of those “women are paid XX cents for every dollar a man makes” stats you’ve seen? They reflect unadjusted pay gaps. That means they don’t compare people doing the same job. They compare the average earnings of one group (e.g. women) to another (e.g. men) across the entire workforce. So when you hear that women earn 83 cents for every dollar a man earns — that’s not usually about someone being underpaid for doing the same work. It’s about systemic issues: occupational segregation influenced by societal norms, career breaks (often for caregiving), and underrepresentation in leadership and other high-paying fields (e.g., senior technical positions). When you adjust for things like role, level, tenure, and location, the pay gap typically shrinks. A lot. In many studies, the adjusted pay gap for most jobs is closer to 1–5%, while limited roles (e.g., dispatchers, insurance sales agents) have gaps of 10% or greater — still unacceptable, but a different story. So what can you do about that to reduce bias or discrimination impacting pay at your organization? Define pay ranges by role and level — and stick to them Comply with pay transparency legislation in posting salary ranges on job descriptions Standardize compensation decisions (don’t or reduce case by case negotiations) Audit your payroll data annually (and don’t stop at gender — look at other demographic and organizational factors too if you track the data and have large enough sample sizes) Train managers to justify comp decisions with evidence and calculations For more detailed information on adjusted (aka controlled) and unadjusted (aka uncontrolled) pay gaps by gender, race, parental status, and work from home status, see the link in comments to Payscale’s 2025 Gender Pay Gap Report. __ 👋 I'm Melissa Theiss 4x Head of People and Business Operations and advisor for bootstrapped and VC-backed SaaS companies. 🗞️ In my newsletter, “The Business of People,” I share tips and tricks that help People leaders think like business leaders.