Wednesday, April 9, 2014

Do we need another Equal Pay Act?

A new push from Washington, D.C. tries to address the 'Gender Wage Gap' via a central approach to more open information concerning wages to make transparent all Compensation Systems in both private and public organizations.

The Gender Wage Gap phenomenon is often misunderstood and discussed by looking at the issue from 30,000 feet or higher without attempt by most to fully understand the underpinnings of the issue.  When understood in-depth it becomes apparent by Compensation Academics, Researchers and Practitioners that when drilling down into the issue the true problem becomes unveiled.

The true story when fully investigating available data down to comparable jobs assigned in similar pay grades is that Men do not earn more that Women when population by Salary Grade level is taken into account.  In actuality, Women who occupy jobs in higher numbers then Men in Professional and Mid Management Occupations actually earn more since they stay in those jobs longer due to lower numbers in higher level (eg Executive) positions.

So, the notion that Men earn more than Women is incorrect in that the full story is not told in that short statement.  What is true is that Women for any number of reasons do not occupy enough positions in higher level graded jobs as men in certain categories.  The more telling explanation is the 'Glass Ceiling' phenomenon where for an assortment of reasons Women are not found as prevalent as Men in the highest Salary Grade Levels.

What is needed are programs to encourage Women to ascend to higher Levels in Technical and Management Occupations, not additional layers of laws restating what is already 'on the books'.