There was a time when virtues like working hard for one company for many years was the best path to take toward success. A recent report from Payscale Inc, a compensation decision-making company, suggests the contrary.
According to its 2024 Gender Pay Gap Report (GPGR), it was found that there has been progress in narrowing the racial wage gap, but the gender wage gap hasn’t budged much. The report states that uncontrolled gender pay gap has been stuck at 83 cents, which means women working in the same positions as men make 17% less than men; what’s more women make 99 cents for every dollar that men earn.
“Pay transparency laws present a unique and distinct advantage for those entering the job market, especially to those affected by pay gaps such as women,” said Lulu Seikaly, senior corporate employment attorney at Payscale. “Candidates now have access to salaries on job postings before applying, which gives them an understanding about how to negotiate their compensation. The laws also empower women to seek higher paying roles, helping to end a long cycle of inequality. We are still in the early days of pay transparency legislation, but as these laws roll out globally, we hope to start seeing a significant impact soon.”
A way for women, particularly Black women, can benefit from job hopping when in pursuit of equitable compensation.
“Women who are willing to quit and seek new jobs more frequently have a better shot at narrowing the pay gap (84 cents); Whereas women who stay longer in their current positions may experience pay compression (80 cents) as they have not experienced the ability to negotiate their pay more fairly,” the report writes.
“While the gender pay gap has not closed since introducing pay transparency legislation, the gap is narrowing and is starting to close for certain segments and locations,” said Ruth Thomas, pay equity strategist at Payscale. “Looking ahead, organizations need to remain focused on pay equity as a central pillar to compensation management, as well as diversity, equity, inclusion, and belonging (DEIB) practices. Fair pay doesn’t just happen. Employers need to proactively create equitable opportunities and measure equitable outcomes.”
