Successful
US companies have shown that pay equity works
By Linda Hallman and Sonia Syngal
When Doris and Don Fisher opened their small retail store in 1969, they each put up $21,000 in savings and, without even discussing it, paid each other the same salary. That's how equal partnerships work.
Today, you know
the Fishers' company as Gap Inc. Following Doris and Don's lead, the company
continues to pay the women and men who work there dollar for dollar for the
same day's work -- from sales associate to senior executive and every level in
between. This story is especially important now as we mark another Equal Pay
Day, the symbolic date when womens salaries finally catch up to mens salaries
from the previous year.
At state and
local levels across the nation, mayors and governors are issuing Equal Pay Day
proclamations, while equal pay advocates gather at rallies, press conferences,
lobby days, and other events. We all want a world in which our daughters and
sons are paid fairly, but today women typically lose out on more than $500,000
in income over the course of their careers due to the pay gap.
In the United States the pay gap has narrowed since the 1970s, largely because of women's progress in education and workforce participation and because men's wages have also been rising at a slower rate. But progress has stalled in recent years, and the pay gap doesn't appear likely to go away on its own. In 2013, women working full time were paid just 78 percent of what men were paid.
At the current
rate, it will take more than 100 years until we finally see equal pay.
But not at Gap
Inc. A 2014 in-depth compensation analysis by Exponential Talent, followed by a
2015 revalidation, confirms that every day is already Equal Pay Day for Gap
Inc.'s workers. By paying people based on the work they do and not their
gender, the company communicates to its 140,000 employees -- 74 percent of whom
are women -- that it values their contributions.
And now Gap Inc.
is encouraging other companies to follow its lead. The simple message that
equality matters is critical. Commitment to pay equality should start at the
top and be an explicit part of every company's mission and goals. Yes, it's the
right thing to do -- but it's also good for the bottom line.
A 2015 study,
The Simple Truth about The Gender Pay Gap, by the American Association of
University Women (AAUW) reports that equal pay isn't simply a womens issue --
it's a family issue. Between 1967 and 2012, the percentage of mothers who
brought home at least a quarter of their family's income rose from less than a
third (28 percent) to nearly two-thirds (63 percent). Most families depend on
women's wages to make ends meet.
A large majority
of mothers are in the paid labor force and are responsible for supporting their
families. For the 40 percent of mothers who are their family's sole or primary
breadwinner, the gender pay gap can contribute to poor living conditions, poor
nutrition, and fewer opportunities for their children. For these women, closing
the gender pay gap is much more than a point of pride -- it's a potentially
life-altering change for them and their families.
In today's
society, equal pay should be the price of entry for any business. Companies
should know by now that paying workers fairly is not only legally and ethically
sound, but financially savvy. Follow the AAUW research and the Gap Inc. model.
Put women in leadership at all levels from the beginning.
Be open and
honest about how much you value your employees and their contributions, because
equal work deserves equal pay.
Hallman is
Executive Director and CEO of AAUW. Syngal is EVP of Global Supply Chain and
Product Operations at Gap Inc.
