What is the gender gap?

The gender gap is the difference between men and women regarding opportunities, treatment, pay, representation and various other aspects of society, including the workplace, education and politics. 

What causes the gender gap?

There are several causes for the gender pay gap, including:

• historical discrimination
• cultural norms and stereotypes
• unequal access to education and employment opportunities
• gender bias in hiring and promotion practices
• lack of support for work-life balance
• unequal pay for equal work
• limited representation of women in leadership positions

These factors can contribute to systemic differences that result in inequalities between men and women in various aspects, including income, career advancement and decision-making roles. Addressing the gender gap typically requires coordinated efforts to challenge and change these underlying factors to promote gender equality.

Discriminatory hiring and pay practices can strengthen the gender pay gap, typically coming from unspoken biases among hiring managers and employers. This bias may result in women earning less than men for the same roles, especially when employers use salary history as the determining factor.

Occupational segregation, where lower-paying industries like service jobs often over-represent women, can contribute to the gap. Family leave and childcare policies can also play a role, as women are more likely to take time off for caregiving responsibilities, impacting their long-term earning potential.

Employers with inadequate family leave and childcare support may force employees, regardless of gender, into lower-paying roles with fewer benefits. These practices can hinder efforts to address the gender pay gap and create challenges for employees striving for fair compensation and work-life balance.

Negotiate salary to help break down barriers

Equal Pay Day is a symbolic reminder of the gender pay gap, highlighting the inequalities in earnings between men and women. This date varies annually, depending on when the average median woman catches up to what the average median man earned in the previous year.

Negotiating salaries is a significant part of advocating for equal compensation for all individuals, regardless of gender. By negotiating their salary, employees can break down barriers by asserting their worth, challenging existing disparities and working towards fair and equitable compensation in the workplace.

Pay transparency for Canadian employers

Pay transparency is when employers disclose salary ranges for job postings, prohibit inquiries about salary history during the hiring process and promote fair pay practices. It can help address wage gaps and promote fairness by providing employees with information with information about salary expectations and preventing discriminatory practices related to compensation.

The Canadian Federal Pay Equity Act typically applies to federally regulated employers with ten or more employees. These workplaces include various sectors such as banks, transportation, infrastructure, postal services, and communications, public sector workplaces such as government offices and parliamentary institutions like the House of Commons.

How can employers close the gender gap?

Because the gender pay gap doesn’t have a singular cause, there isn’t a quick fix for reducing the pay disparity between men and women. However, there are various strategies employers can adopt to help narrow the gap. Below are some steps you can take to address the pay gap and promote pay transparency within your organization:

• Assess your current position. Determine where your organization stands regarding pay transparency and where you want it to be.
• Review job descriptions. Ensure that your company’s job requirements regarding education and experience are reasonable and aligned with actual job responsibilities. You can also evaluate the pay ranges to see if the level of duties matches and if pay increases have kept pace with changes in job roles.
• Examine pay scales. Analyze if your pay levels are consistent with experience, job titles, and length of service. Watch for instances where you pay new hires more than experienced colleagues or managers. Assess if any aspects of your compensation structure disproportionately affect protected classes of employees.
• Establish or update compensation policies. Develop clear and objective policies regarding pay structure, raises and promotions. Establishing or updating compensation policies can involve analyzing existing ones, doing market research, defining pay structures, implementing equal measures, communicating policies, providing training and education and monitoring and reviewing the effectiveness of your policies. This approach can boost fairness and transparency in your compensation practices while supporting employee satisfaction, retention and business growth.
• Implement predictable scheduling. Implement predictable scheduling. Unstable work schedules can pose challenges for employees, especially those with caregiving responsibilities, as they struggle to arrange childcare or manage family commitments among constant changes. Fair scheduling can address the gender pay gap by allowing employees to request schedule adjustments and minimize irregular or unpredictable work hours.
• Refrain from asking about candidates’ pay history. During salary negotiations with potential candidates or new employees, employers often ask about their salary history from past positions. Relying on salary history can unfairly impact women, who are already prone to earning less than men and can enable the ongoing cycle of pay disparity, extending across different jobs and employers.
• Consider salary transparency. Encouraging an environment where employees feel comfortable discussing their compensation openly. Salary transparency can promote fairness and consistency within your workplace, helping employees better understand how their pay aligns with their peers. Creating a culture that values open communication can empower your workforce to advocate for fair compensation and contribute to a more equitable workplace.