With consumers calling out more companies for unfair and gender-discrimination practices, it is time to audit your business.

Nike is the latest company in the headlines in terms of skewed gender pay gaps A class-action lawsuit is not something you want your business in the news for. It is time for all companies to check their current policies and set any inconsistencies right before you make the news.

What is a gender pay gap?

The gender pay gap is the difference in wages between men and women for the same work, position, job description, or work of equal value.

Many companies do not realise that they have pay gaps, but this is no longer an excuse.

In South Africa, the median gender pay gap is between 23% and 35%. The International Labour Organisation has been in place for over 60 years, yet there is still a gender pay gap across many industries.

Why does this matter?

In South Africa, we have 38% of single working parents heading households. 48% of female-headed households also support extended family members, with all the financial responsibility of raising the child falling on their shoulders.

Apart from time, running homes, and a career, these single parents need more pay to fund childcare, allowing them to spend more time focusing on their careers.

If a working woman does not have family or partner support at home, they land up stagnating in a job. Fear of being seen as a trouble and having to manage their family and career, they rather stay in a safe position.

Dealing with an unconscious bias

When someone is interviewed, they will often be seen in some light that may affect their salary package. When your company sets a position specification and box, the ideal situation is to set the package upfront, based on the outputs. Often, salaries are negotiated based on what the potential employee currently earns. It can cause issues down the line, as women are notoriously bad at self-promotion, often setting themselves up as cheaper employees.

Your business can combat this by outlying what the position is worth to the company and removing the candidate’s responsibility to negotiate their package.

HR can set the band status

If your business has an HR department, setting the salary bands for the various positions is ideal. This way, it does not matter if someone is male or female. The salary for that position is then already pre-determined. It should be fair and market-related.

If you are more transparent, it also makes for a better working environment. Everyone then can get on with the job, knowing they will get fair remuneration.

If you do not have a dedicated HR team, getting a consultant to manage this for you may be worth it.

Supporting the team members that need it

It is essential to understand the personal issues and how the business can help. It may be in the form of financial counseling or even childcare options at work. Of course, it is a personal choice to have kids, but it is time for an intervention when a staff member is constantly battling with money.

Your business can get more focus and a better outcome when your team does not get distracted by personal issues.

If you have not done an audit on your business salaries, it may be time to do so. It bodes well for companies to be aware of the social issues plaguing the working environment now. It is an excellent time to be a leader in this department. You will reap the benefits in the long run.

Bizcash is a South African business that supports and grows SMME’s with alternative funding options. We want to see you succeed.

Please speak to our team to find out more about how we can help your business.

Get in touch with us on 0861 93 93 93 or email us at info@bizcash.co.za or contact us here.

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