Despite the fact that the Equal Pay Act has been law since 1963, many problems inevitably arise in the administration of equal pay laws (Fisher). It has been estimated that at this current slow rate of progression in closing the gender pay gap it will be 2068 by the time men and women’s wages are equalized. It is clear that the business case, as well as the legislative case, has a significant role to play (Commission Policy Report).
There are some factors which stop or slow equal pay for genders. These are behavioral factors, corporate culture and policies, human resource practices and social and environmental factors (Giapponi and McEvoy, 2006).
Behavioral factors are related with lack of awareness of pay inequity. Women do not aware or do not mind wage inequity because of personal statement. According to The National Committee on Pay Equity, behavioral factor is very important for wage inequity (Giapponi and McEvoy, 2006). Both social norms that deem the discussion or questioning of others’ salaries to be inappropriate and corporate policies that discourage or forbid such discussions contribute to women’s inability to assess accurately their pay relative to their male counterparts (Giapponi and McEvoy, 2006). To avoid this type of awareness and ignorance from women, there are four steps that women can take to keep these stereotypes from cutting into potential raises. Women should be understood and learned their importance in the working area and working life; women should signal their willingness to move within the organization. Women should insist on a contract clause that calibrates their raises to the increases paid to men of comparable rank and in comparable firms and lastly, women compile information on the pay of comparable managers and bring it to compensation meetings of Human Resources representatives or the board's compensation committee (Datta, Guha, and Iskandar-Datta, 2009)
Corporate culture and policies factors are related with organization perspective. Some organizations are unwilling to show their reward systems and pay policies (Lawler, 1995). Many Human Resources professionals believe gender pay gaps to be resolvable through the monitoring of pay levels and communication (Report on Salary Surveys).Greater pay transparency has been a great benefit to the board, employees and managers as they now know what is happening across the business and they are able to confidently justify their actions (Commission Policy Report).All market-related supplements are recorded and reviewed separately from basic salary to ensure openness and transparency. Regular research market rates within the various labor markets in which they operate is undertaken improving transparency would also help to improve talent development, as employees would be able to see what they could earn if they wanted to move to another division and upgrade their skill set. (Commission Policy Report).
Human resources practices are related with the pay of new hires on...