The 2018 Fair Pay Report reveals female SMB employees make 66 cents for every dollar paid to men on average, which is 18 percent less than the broader nationwide gap of women earning 80 cents for every dollar men earn according to the U.S. Department of Labor.
The survey, sponsored by Zenefits, polled 1,000 employees and 400 employers - business owners or HR decision makers - nationwide on issues spanning equal pay, benefits, HR programs and company culture in today’s workplace.
"Self-advocacy and negotiation are two major factors in perpetuating the gender pay gap,” stated Beth Steinberg, Chief People Officer at Zenefits, in an announcement. “By instating a more transparent and mindful pay policy, employers can help remove the issues of unconscious bias, bargaining and conflict that stem from a process reliant on negotiation. Teaching people to negotiate better is a flawed solution to the issue. True compensation fairness will come when employers become more transparent in their pay policies."
Today's workers have more access to wage information through platforms, like Glassdoor, empowering them to ask questions about a company's equal pay policies. Employers need to better define their pay policies and develop their internal people programs.
Ellen Rohr, a small business expert and president of Zoom Drain, an expert drain and sewer franchise business, applies open-book management as one way to close the wage gap.
“When you tell an employee not to say anything after you’ve given that person a raise, you make a liar out of him because someone is going to ask,” says Rohr. “That’s where it goes south.”
Open-book management has to do with actively involving employees in the financial life of the company. Coined by Inc. Magazine’s John Case, here are 3 ways to create more transparency and narrow gender wage gap by adopting principles from open-book management.
If you’re interested in learning how to grow and fulfill the potential of your business, check out our three-week, coach-led HR course by BusinessBlocks. Enroll today.
© 2018 BusinessBlocks. All rights reserved.