How to Address Gender Pay Gap in the Workplace?

By hrlineup | 04.05.2023

Gender pay gap refers to the difference between the earnings of male and female employees. This is a prevalent issue in many workplaces around the world, despite numerous efforts to address it. Women are still paid less than men for the same work, with statistics showing that women earn about 82 cents to the dollar earned by men. This gap is particularly pronounced in certain industries, such as technology and finance, and is more significant for women of color. In this article, we will discuss ways to address gender pay gap in the workplace.

What is Gender Pay Gap & How It is Against Gender Equality Norms?

Gender pay gap refers to the difference in earnings between men and women in the workplace. It is an issue that has been present for decades and continues to persist even in the 21st century. Gender pay gap violates the principles of gender equality and hinders the progress of women in the workplace.

According to the World Economic Forum’s Global Gender Gap Report 2021, the global gender pay gap stands at 16%. This means that women, on average, earn 84 cents for every dollar earned by men. The gender pay gap is not limited to a particular country or region. It exists in every country, albeit to varying degrees.

There are several factors that contribute to the gender pay gap. One of the primary reasons is occupational segregation. Women are often overrepresented in low-paying jobs, while men dominate high-paying professions. This is a result of societal and cultural norms that dictate which careers are considered appropriate for men and women. Discrimination and bias also play a significant role in the gender pay gap. Women are often paid less than men for doing the same job, even if they have the same qualifications and experience.

The gender pay gap is a significant obstacle to achieving gender equality. It perpetuates the notion that women are worth less than men and undermines their economic independence. The gender pay gap makes it difficult for women to advance in their careers, earn promotions, and achieve leadership positions. It also has long-term consequences for women’s retirement savings and financial security.

Gender pay gap is against gender equality norms because it creates a system of inequality where women are not given equal opportunities to succeed in the workplace. This affects their overall economic empowerment and also affects their ability to contribute to society. Gender pay gap denies women the opportunity to achieve their full potential, perpetuates stereotypes, and undermines the principles of fairness and equality.

Governments, employers, and civil society organizations must take action to address the gender pay gap. This includes implementing policies and practices that promote gender equality, providing equal pay for equal work, increasing women’s representation in leadership positions, and challenging gender stereotypes and bias. Closing the gender pay gap is essential for achieving gender equality and creating a world where everyone has an equal opportunity to succeed.

Steps to Address the Gender Pay Gap

1. Conduct a Pay Equity Analysis

The first step to addressing the gender pay gap is to conduct a pay equity analysis. This involves examining the pay of all employees and identifying any disparities based on gender. This analysis should include not only base pay but also bonuses, incentives, and benefits.

Once the analysis is complete, the company can take steps to address any disparities found. This may involve adjusting salaries for those who are underpaid or addressing any systemic issues that contribute to the gap.

2. Implement Transparent Pay Practices

To ensure that pay is fair and equitable, companies should implement transparent pay practices. This includes clearly defining job roles and responsibilities, establishing salary ranges for each position, and providing clear criteria for promotions and bonuses.

Additionally, companies should be transparent about how pay is determined, including factors such as experience, education, and performance. This will help employees understand how their pay is calculated and reduce the potential for bias or discrimination.

3. Address Unconscious Bias

Unconscious bias can impact decisions around hiring, promotion, and pay. To address this issue, companies should provide unconscious bias training for all employees, particularly those involved in hiring and promotion decisions.

Additionally, companies should implement objective criteria for evaluating job performance and making promotion decisions. This can include standardized performance evaluations, job-related skills assessments, and clear criteria for advancement.

4. Provide Family-Friendly Policies

One significant contributor to the gender pay gap is the fact that women are more likely to take time off for caregiving responsibilities. To address this issue, companies should provide family-friendly policies, such as flexible work arrangements, paid parental leave, and on-site childcare.

By providing these policies, companies can support employees in balancing their work and family responsibilities, reducing the impact on their earnings over time.

5. Encourage Salary Negotiation

Women are less likely than men to negotiate their salaries, which can contribute to the gender pay gap. To address this issue, companies should encourage salary negotiation and provide training on how to negotiate effectively.

Additionally, companies should be open to negotiating salaries and provide a clear process for employees to request a review of their pay.

Impact of Gender Pay Gap in the Workplace

The gender pay gap is a persistent issue that has long plagued the modern workplace. It refers to the difference in earnings between men and women for equal work or work of equal value. This pay gap has significant impacts on both individual workers and the wider economy.

One of the most immediate impacts of the gender pay gap is the financial disadvantage it places on women. This disparity in wages means that women are often paid less for the same work as men, which can make it more difficult for them to achieve financial independence, save for retirement, or invest in their future. It can also have a significant impact on the quality of life for women, their families, and communities.

The gender pay gap can also have an impact on career progression and opportunities. Women may be overlooked for promotions or opportunities for professional development due to their lower salaries. This can lead to a lack of diversity in leadership positions and perpetuate the cycle of gender inequality in the workplace.

Another impact of the gender pay gap is its effect on the wider economy. Research shows that closing the gender pay gap could increase global GDP by trillions of dollars. This is because when women are paid fairly for their work, they are more likely to spend money, which can boost economic growth and create new jobs.

The gender pay gap also has a social impact, perpetuating harmful gender stereotypes and undermining efforts to achieve gender equality. It sends the message that women’s work is less valuable than men’s and reinforces the idea that women should be responsible for domestic and caregiving duties. This can have a negative impact on women’s mental health and well-being, as well as their opportunities to pursue careers and contribute fully to society.


Addressing the gender pay gap is essential for creating a fair and equitable workplace. By conducting a pay equity analysis, implementing transparent pay practices, addressing unconscious bias, providing family-friendly policies, and encouraging salary negotiation, companies can take steps to close the gap and create a more inclusive workplace.

While these steps may require significant effort and resources, they are essential for creating a more equitable and sustainable workforce.