How to Close Gender Pay Gap with People Analytics [Panel Session]

Explore –

• • 5 Must-Have Strategies to Close the Gender Pay Gap With People Analytics What is Hybrid Workforce Model?
  • Why Gender Pay Gap Still Exists
  • How Tech and Policy Interventions Can Disrupt the Gender Pay Gap
  • People Analytics: A Starting Point for Change

5 Must-Have Strategies to Close the Gender Pay Gap With People Analytics

The experienced panel will share insights on implementing transparent pay structures, reducing bias in reporting metrics, and the benefits of continuous monitoring of gender-specific compensation parameters.

The panelists of this webinar include:

• Christina Crowley from SplashBI
• Erika Sandoval of UKG
• Erin Simmons from Matchtech
• Manjari Gupta of SplashBI
• Jerese Isaac from the City of Atlanta
• Victoria Collier from The OG Group

The session will highlight key strategies to achieve gender equity using data insights, such as:

• Regular Pay Audits
• Transparent Pay Structures
• Drivers of Pay
• Bias-Free Recruitment Metrics
• Frequent Monitoring for Continuous Progress

Equip yourself with the knowledge and tools to drive meaningful organizational change. Watch the session on demand and be part of the solution to closing the gender pay gap. 

Why Gender Pay Gap Still Exists

Despite progress in recent decades, the gender pay gap persists in 2024 due to several entrenched issues that start from the moment a job application is sent. Here are the main reasons we are still figuring out how to close the gender pay gap:

1. Unconscious bias in hiring and promotions:

Without conscious intervention, hiring and promotion practices can be rife with unconscious bias that skews opportunity toward or away from a particular identity group. These biases can be subtle yet impactful, like the ‘affinity bias’, where a lack of common interests or shared background with a female candidate might cause male managers to overlook their qualifications.

2. Lack of pay transparency

Many organizations do not disclose salary ranges or compensation structures with current or prospective employees. This lack of transparency makes it difficult for employees to negotiate fair pay and for organizations to hold themselves accountable for equitable compensation practices.

Source

Notably, these numbers are often limited to the hiring stage and pay transparency drops dramatically among existing employees. Surveys found roughly 40% of U.S. respondents do not share any pay data with existing employees, with the number going up to 55% outside the U.S.

3. Data barriers

Many companies need more data analysis capabilities. The absence of comprehensive, disaggregated data on race, ethnicity, gender, and other demographics hampers the ability to conduct thorough equity assessments. By leveraging advanced analytical tools, organizations can gain deeper insights into their pay structures, identify hidden biases, and learn how to close the gender pay gap.

4. Insufficient monitoring of equity interventions

Even when interventions address pay equity, they are not always monitored rigorously. Continuous and thorough monitoring is essential to ensure these interventions are effective and that pay equity is maintained over time.

The gender pay gap is a complex issue rooted in longstanding societal and organizational practices. Addressing it requires a multi-faceted approach that combines data-driven insights, policy changes, and cultural shifts.

How Tech and Policy Interventions Can Disrupt the Gender Pay Gap

As organizations strive to close the gender pay gap, a combination of technological advancements and policy reforms are emerging as powerful solutions.

New age technologies addressing unconscious bias

Artificial Intelligence (AI) is crucial in mitigating unconscious bias in hiring and promotion processes. These technologies can help neutralize biases like affinity bias, conformity bias, age, and gender-related biases. Here are a few ways AI can level the playing field:

• AI-powered resume screening tools that focus on skills and qualifications rather than demographic information.
• Structured interview platforms that use natural language processing to analyze responses objectively.
• Performance evaluation systems that use data-driven metrics to assess employee contributions fairly.

AI systems must be used in conjunction with other best practices and analytics tools for inclusivity, as these systems can be influenced by training data or prevailing industry conditions.

Policies addressing lack of pay transparency

Recent policy interventions are also making significant strides in promoting pay transparency:

European Union Pay Transparency Directive: Set to be implemented by June 2026, this directive requires:

• Gender pay gap reporting for companies with over 100 employees.
  Prohibition of salary history inquiries.
• Disclosure of salary ranges in job postings.
• Action plans for companies with gender pay gaps exceeding 5%

United States Salary Transparency Laws:

• States like California, New York, and Colorado now require salary range disclosure in job postings.
• Areas with these laws are seeing faster reductions in the gender pay gap compared to the national average.
• As a result of these laws, the percentage of job listings with salary information on the jobs portal Indeed increased from 18% in February 2020 to over 50% by August 2023.

Solutions for data barriers and monitoring issues

As more data on workplace inequity is mandated and generated, organizations need robust solutions to make sense of the data on how to close the gender pay gap. People analytics tools are among the most potent solutions to the monitoring challenges in achieving gender equity.

What people analytics can enable:

• Detailed pay equity analysis: People analytics tools allow organizations to examine compensation data across various dimensions such as job role, seniority, location, and industry. This detailed analysis helps uncover potential sources of inequity. For instance, in the U.S., the gender pay gap varies significantly between states, with women in Vermont earning $3,872 less than their male counterparts, while women in Wyoming earn $18,877 less annually.
• Real-time monitoring and reporting: People analytics tools like SplashBI for HR automate data collection and analysis, allowing HR professionals to set realistic targets, track progress, and adjust strategies in real-time. This continuous monitoring ensures that interventions remain effective and that pay equity is maintained.
• Compliance support: People analytics tools can help companies prepare for and comply with regulations like the EU’s Pay Transparency Directive and the Corporate Sustainability Reporting Directive (CSRD). Their simple setup and automated reporting functionality significantly reduce the burden on HR professionals, leaving them to focus on how to close the gender pay gap at a high level.

People Analytics: A Starting Point for Change

Despite the clear benefits, there is still a gap in adopting people analytics. While 71% of companies see pay equity as critical, only 14% dedicate sufficient budget and resources to it. Bridging this gap requires investing in robust analytics solutions to build a workforce where everyone’s contributions are fairly compensated. By providing deep insights into compensation structures and career trajectories, these tools enable companies to move beyond compliance to proactive advocacy for fair pay.

To learn more about how to close the gender pay gap by leveraging people analytics, join us for our upcoming panel session: