The gender pay gap is a topic that makes many people in business uncomfortable; it is the elephant in the room, which nobody dares to talk about. But when we put the facts in numbers, the statistics come as shocking to many and can’t be ignored any longer.
Data from the World Economic Forum’s Global Gender Gap report 2015, a report, which ranks 145 economies on leveraging female talent pool, based on economic, educational, health-based and political indicators, indicates that it will take another 118 years for women to start earning as much as men. This means that the gender pay gap may finally be closed by 2133.
Contrary to the popular opinion that the gender gap in startups has narrowed down due to the fact that the rate of women entrepreneurs has risen tremendously in the past few years, the difference in pay rate in startups is still a huge issue.
The gender gap issue is an important topic that entrepreneurs should pay attention to. There are some changes that can be taken by entrepreneurs that can slowly but surely bring the business world one step closer to closing the gap or at least shrinking it significantly.
Startups are change-makers. They disrupt whole industries and set the trends. Startups have the ability to challenge the status quo by making some changes towards minimizing the gender pay gap.
These changes may start with embracing hiring process that is gender and race blind. The CV scanning can be done effectively without knowing if the applicant is a male or female. Like this, the focus will be on the skill set, knowledge, experience, and talents of the applicants and will give fair chance to all of them – females and males.
Another step that startups can take towards minimizing the gender pay gap is to embrace a policy of pay transparency. The female employees will know how much their male co-workers are making and will be aware if they are significantly underpaid. This will at least open a dialogue on the topic.
Women, however, are less likely to negotiate their salaries. This is a huge factor that strengthens the gender pay gap. Women need to feel more confident and must know their worth and, most importantly, ask for it. The main change should come from within.
Pricing consultant Casey Brown tackles this important topic in one of her aspiring talks on the stage of TEDx. She emphasizes how important it is for women to learn how to communicate better their value in order to receive the salary they deserve.