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Frequently
Asked
Ques6ons

Josie
Sutcliffe
VP,
Marke4ng
Visier
Gender Pay Equity: How HR Can
Accelerate the Path
#WFwebinar

Gender pay equity: How HR can accelerate the
path
Josie Sutcliffe
VP, Marke@ng
Visier
November 2016

Agenda
§ Introduc@on
§ Why Gender Equity MaNers to the Business
§ The Manager Divide: A Key New Finding
§ How HR Can Accelerate the Path to Gender Equity
§ Q&A

Fueling the Datafica@on of HR:
Visier is how the best brands are saying
goodbye to guesswork, and hello to insights

Visier Workforce Intelligence
WORKFORCE
PLANNING
WORKFORCE
ANALYTICS
TALENT ACQUISITION
ANALYTICS

POLL: What best describes your role?
§ HR Prac@@oner / Generalist
§ HR Analyst / Planner
§ HR Leader
§ Talent Acquisi@on Prac@@oner
§ Other

Great companies consistently
make the best decisions about
what to do, how to do it, and
why.

Excep*onal companies know the best people
decisions drive the best business outcomes
Customers
Profits
Revenue
Banks
with
greater
employee
reten4on
achieve
higher
customer
sa4sfac4on.
Retail
outlets
with
highly
engaged
employees
are
more
profitable.
Companies
with
a
more
diverse
workforce
outperform
others.

Why gender
equity maNers
to the business

The benefits of gender diversity
“Business
teams
with
an
equal
gender
mix
perform
beAer
than
male-­‐dominated
teams
in
terms
of
sales
and
profits.”
-­‐
Harvard
Kennedy
School
The
Impact
of
Gender
Diversity
on
the
Performance
of
Business
Teams,
Harvard
Kennedy
School,
2013

The benefits of gender diversity
“Companies
in
the
top
quar6le
for
gender
diversity
are
15
percent
more
likely
to
have
financial
returns
above
their
respec6ve
na6onal
industry
medians.”
-­‐
McKinsey
Why
Diversity
MaRers,
McKinsey,
2015

The benefits of gender diversity
“$4.3
Trillion:
The
amount
the
U.S.
could
add
to
its
annual
GDP
by
2025
if
women
were
to
aRain
full
gender
equality
in
the
workplace.”
-­‐
McKinsey
Global
Ins4tute
hRp://www.mckinsey.com/global-­‐themes/employment-­‐and-­‐
growth/how-­‐advancing-­‐womens-­‐equality-­‐can-­‐add-­‐12-­‐
trillion-­‐to-­‐global-­‐growth

The topic most
commonly
related to
Gender Equity?
Pay Equity

Has your company signed the Equal Pay Pledge?
§ White House Equal Pay Pledge
§ Today there are over 100
companies signed, that collec@vely
employ millions of Americans

The Equal Pay Pledge
§ 28 companies ini@ally signed on to the pledge, including
Airbnb, Amazon, American Airlines, Cisco, Expedia, Gap Inc.,
Johnson & Johnson, and more
§ The most recent commitments include a diverse range of
employers, including AT&T, eBay, The Estée Lauder
Companies, InterCon@nental Hotels Group, Mastercard,
Yahoo, Square and Zillow Group

The Equal Pay Pledge
We commit to:
§ conduc@ng an annual company-­‐wide gender pay analysis across
occupa@ons
§ reviewing hiring and promo@on processes and procedures to
reduce unconscious bias and structural barriers
§ embedding equal pay efforts into broader enterprise-­‐wide equity
ini@a@ves.

The gender wage gap: A slow correc@on
Women’s
earnings
as
a
percent
of
Men’s

At the current rate, it will take more than 100 years
to achieve gender parity at the C-­‐Suite level

Since 1963: “Equal Pay for Equal Work”
US
Equal
Pay
Act
Prohibits
wage
discrimina4on
between
men
and
women
in
same
establishment
who
perform
jobs
that
require
substan4ally
equal
skill,
effort,
and
responsibility
under
similar
working
condi4ons
Pay
differen4als
are
permiRed
if
based
on
seniority,
merit,
quan4ty/quality
of
produc4on,
or
factor
other
than
sex
It
is
employer's
burden
to
prove
pay
differen4al
is
valid

Pay discrimina@on: Risk to employers
19,724
charges
under
the
Equal
Pay
Act
since
1997
About
1,000
charges
per
year
Companies
face
reputa6onal
and
financial
risk
if
charged

New in 2017/18: Pay Equity Repor@ng Changes
• Every
year,
employers
with
100
or
more
employees
need
to
fill
in
EEO-­‐1
form
What
EEO-­‐1
form
asks
now:
What
the
proposed
change
adds:
• Employee
numbers
by
job
category,
sex,
race,
ethnicity
• 12
pay
bands
that
workers
fall
into
• New
pay
data
would
help
enforce
federal
pay
discrimina4on
laws

POLL: What is your HR leadership’s priori@za@on of Gender
Equity?
1. Highest priority
2. High priority
3. Medium priority
4. Low priority
5. Lowest priority
6. Not sure

HR is the key agent of change in helping employers achieve
gender equality
“While the underlying issues are daun*ng and complex,
human resource professionals are in a unique posi*on to effect
change.
Not only are HR leaders in charge of their organiza*ons’
recrui*ng, diversity and compensa*on efforts, but the
profession itself is dominated by women.”
hRps://www.shrm.org/hr-­‐today/news/hr-­‐
magazine/1116/pages/hr-­‐key-­‐in-­‐helping-­‐
organiza4ons-­‐achieve-­‐gender-­‐equality.aspx

HR has a key role to play to reduce risk – How will you:
§ Ensure you aren’t blind-­‐sided by the results the first-­‐@me
you fill in the new report?
§ Con@nuously monitor pay equity to see where the greatest
risks are?
§ Discover whether pay dispari@es exist for valid reasons?
§ Get insights for how to address the risks?

If
a
company
pays
men
and
women
equally
for
equal
work,
has
it
achieved
gender
equity?

Despite decades of tracking and
research, publicly available
benchmark data on gender
equity is limited
1.
BLS
Reports,
Women
in
the
labor
force:
a
databook,
December
2015.

What is Visier Insights?
Visier
Customer
Data
Visier
Insights
Data
Anonymized,
standardized
subset
of
aggregated
Visier
customer
data

Equal pay for equal work alone will
not close the wage gap

How do salaries for men and women differ by age?

When does the Gender Wage Gap occur?
Average
male
salary
by
age
Average
female
salary
by
age
Age
32
is
the
inflec4on
point

Why does this widening of the Gender Wage Gap occur? Is it
genera@onal? NO
The
wage
gape
narrows
for
older
workers
–
if
genera4onal,
it
should
widen
further

If it were genera@onal, we would expect to see bias in
promo@ons by age
Visier
Insights
showed
the
overall
average
promo4on
rate
in
2015
was
12.6—a
rate
that
had
no
significant
difference
for
men
and
women,
across
ages

So, we focused our lens on one type of promo@on and found: A
higher percent of men held manager posi@ons than women
Percent
of
men
who
are
managers
Percent
of
women
who
are
managers

The Manager
Divide: A Key New
Finding
www.visier.com/gender

Why does this maNer?
With
managers*
earning
on
average
2x
the
wages
of
non-­‐managers,
the
Manager
Divide—
an
underrepresenta4on
of
women
in
manager
posi4ons—directly
drives
the
gender
wage
gap.
*Manager
=
Someone
responsible
for
overseeing
or
direc4ng
the
work
of
a
group
(or
groups)
of
individuals

Closing the Manager Divide would reduce the gender wage gap
Average
male
salary
Average
female
salary
Average
female
salary
if
same
%
were
managers
and
had
equal
pay
Average
female
salary
if
same
%
were
managers

Note:
§ The Manager Divide compares the percent of women who
are managers and the percent of men who are managers
§ The amount of men or women in the workforce, therefore,
does not impact the calcula@on

Why does the Manager Divide occur?
The
Manager
Divide
happens
at
the
same
4me
women
are
dropping
out
of
the
workforce

Why does the Manager Divide occur?
Which
overlaps
with
the
childcare
years

The Motherhood Penalty

Sweden: A Case Study in the Impact of
Parental Leave on Pay
§ 1970s
§ Sweden changed maternity leave to parental leave – available to
mothers and fathers
§ Parent on leave would receive most of full salary for first year
§ The result
§ Female employment rates and birth dates became highest in
developed world

Sweden: A Case Study in the Impact of Parental Leave on
Pay
§ However:
§ Share of fathers, who typically held the higher salary, taking parental
leave stalled at 6%
§ Un@l 1995:
§ “Daddy leave”: a mone@zed incen@ve for fathers to take parental leave
§ Percent of fathers taking leave soared to 80%

The results
§ Each addi@onal month that the father stays on parental
leave increased the mother’s earnings by 6.7%
§ Fathers, on the other hand, did not experience any earnings
impact from mothers taking parental leave
Swedish
Ins4tute
of
Labor
Market
Policy
Evalua

How HR Can
Accelerate the
Path to Gender
Equity

HR can most directly impact Gender Equity:
§ Look to increase
the female ra@o at
every stage in your
hiring process –
especially for
manager /
leadership roles

HR can most directly impact Gender Equity:
§ Implement blind
screening, removing
names (or other gender
iden@fiers) from resumes
when selec@ng candidates
for interviews

Increase measurement of equity in rollout of HR policies

Increase measurement of equity in rollout of HR policies

Use workforce intelligence to discover pay equity issues
• Adapt
programs
and
policies
to
achieve
pay
equity
• Use
data
to
support
validity
of
apparent
pay
dispari4es
• Confirm
valid
reasons
for
pay
differen4als—such
as
longer
tenure,
more
educa4on,
or
higher
performance

Pay Equity is only one layer: Diversity is another

Gallup Report: Women in America: Work and Life
Well-­‐Lived
“To aFract, retain and engage a modern workforce,
business leaders must be courageous and begin to
examine, if not overhaul, their organiza*onal policies,
strategies, cultures and values.”

Craq a
workplace
culture that
takes
women’s
expecta@ons
into account
Gallup Report:
Women in America:
Work and Life Well-
Lived

The outside is looking in

Society: Other Considera@ons
§ Support meaningful paid parental leave that is equal for both
women and men -­‐-­‐ and socially acceptable for both to take
§ Support programs that increase the availability of good quality
affordable childcare for all parents
§ Ensure it is socially acceptable for both mothers and fathers to
make use of flexible working @me arrangements to care for
children
§ Develop and support long-­‐term programs aimed at removing
the gender bias and social taboos associated with career
choices

Download the report at www.visier.com/gender
Download
your
copy
Subscribe
to
the
Workforce
Intelligence
Blog

Thank you
Josie
Sutcliffe
josie.sutcliffe@visier.com

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