How Does the Gender Pay Gap Affect SMEs?

29/06/2018 14:33


The gender pay gap has become a hot topic in the last few years. Some shocking figures have come to the fore from big and small businesses revealing the stark differences between the pay of men and women. For example, a full quarter of SMEs admit there is a very real gender pay gap in their industries.

This type of imbalance can have a very real effect on a business and its operations. Let’s dive in and see what the issues are and how to address the gender pay gap.



Talent and Its Value


One of the main issues affecting many SMEs is the struggle with finding and retaining the best talent. If an employee feels they will – or are – earning less than a fellow worker simply because of their gender, this problem is only compounded.

We extol the virtues of hard work and talent yet, when it really comes down to it, many female employees are less valued simply because of their gender. A talented, driven employee should see the rewards and not feel that a co-worker, who may be less talented, earns more simply because they are a man. It creates a sense of injustice and resentment towards the business. This employee is then less likely to give their all, because they know they aren’t valued as they should be.

A good working relationship is all about trust, and a gender pay gap severely undermines this.



Assess Yourself


One of the most important parts of off-setting a gender pay gap is to conduct a thorough self-audit. Go through your historical and current pay records and look at the figures. They won’t lie, and they’ll show you exactly where an imbalance is if there is one to find.

It may be that the differences you find are justifiable on the grounds of seniority, experience and talent. If not, you need to assess what the figures are saying and move to address any unfairness they reveal.



Transparency


This is an important step as it shows two things: you are fully aware of the wider issue of gender pay differences, and you are taking concrete steps to address it.

Transparency in your pay structure and levels will show current and prospective employees that you are putting the best foot forward and are keen to foster a fair, balanced workplace where talent and hard work are the only factors affecting pay. This should be something you are proud of and will mark your business as a progressive and modern outfit to potential talent.


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