4 Steps to Close the Gender Pay Gap in 2022

4 Steps to Close the Gender Pay Gap in 2022

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This International Women’s Day, put your organization’s money where your mouth is: It’s time to close the gender pay gap, and WorkTango’s got tips for you. Let’s have some real talk about pay leveling.

What is pay leveling?

Pay leveling (or job leveling) is the process of assigning value to each position in an organization. In short, it’s a way of taking the guesswork out of what people should be paid, and establishing a clear framework for what someone should be paid for work in a given role.

When you think about the fight for gender equality in the workplace, you might imagine something more glamorous than a spreadsheet. But to end bias and close the gender pay gap, you’ve got to get objective — and assigning the value of work, rather than defining value based on gender, race, sexuality, or any other demographic, is the first step.

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Why is pay leveling important?

According to the US Bureau of Labor Statistics, American women’s earnings are about 82-93% of their male counterparts’, depending on industry. But pay leveling doesn’t only affect women.

Bias spreads farther than we think.

Women are not the only beneficiaries of a leveling process. Bias hides everywhere.

Plus, leveling doesn’t only affect the employee.

Today’s ultra-competitive job market demands that businesses get ahead of what employees want. What employees are now asking for is a culture of transparency.

Actionable tips for leveling pay at your company

1. Identify a driver

Pay leveling is a difficult and time-consuming process. As the CHRO or People leader, make sure you can clear the time for someone on your team to drive the project, and that they have passion for the initiative.

2. Find pay scale information

Luckily, you don’t have to reinvent the wheel. Lots of companies offer pay grade information across industries, seniority levels, and more.

3. Get buy-in from leadership

Be clear about the benefits this initiative offers your organization. Here are a few ideas for getting leaders on board:

  • Build empathy. Ask leaders to think back to a time earlier in their careers when they desperately wanted a raise or promotion and didn’t get it for reasons that weren’t clear.
  • Emphasize the business case. Start with vision and pay-off: transparency, eliminating bias, retaining talent, competing in a hot job market. 
  • Get it on the calendar.  Remind leaders of the importance of the process, and get a date fixed, even if it’s months in the future.

4. Build company-wide trust in the process

You build trust by being transparent and by applying systems consistently. Hold everyone — executives, yourself, people managers — accountable to the levels that have been set. People talk about their salaries. So its’s essential for things to be fair and consistent.”

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How WorkTango closed the gender pay gap

When companies are small, it’s easier for them to keep a pulse on what’s happening. It’s a simple matter to make sure people are being paid fairly.

But as companies grow, there’s an opportunity to set a pay leveling precedent.

Your investment in the pay leveling process will improve the quality of the employee experience every day.

Building greater, lasting culture

HR leaders and members of the C-suite have the power to drive lasting, systemic change in the workplace. But everyone contributes to creating a psychologically safe, equitable workplace. 

This International Women’s Day — and beyond — think about the culture you build with those around you. Is it doing everything you want? Or is there an opportunity to take it to the next level? Let’s get the conversation started.


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