In 2021, women on average earn only 82 cents for every dollar earned by white men. This disparity gets worse for women of color:
- Black women currently receive only 63 cents for every dollar paid to white men.
- Native women earn only 57 cents on the dollar to white men.
- Latina women earn 55 cents compared to white men.
- AAPI women receive as little as 52 cents compared to white men.
The Institute for Women’s Policy Research study explains that if the US corrected the gender pay gap overnight, more than 60% of workers would receive an immediate pay raise.
But the gender wage gap is not just a moral issue. A gender wage gap can have massively negative consequences on your business.
Your innovation suffers
When women see a gender wage cap and don’t have fair opportunities to advance their careers, they leave to work somewhere they do (like your competition!).
Research shows that workplaces with fewer women experience lower profits, decreased sales results, and lower overall productivity.
A workforce without diversity thinks the same, acts the same, and brings the same solutions to new problems, making innovation far less likely.
A diverse workforce, on the other hand, can innovate with greater ease. Different backgrounds and experiences lead to a wider variety of expertise, providing business leaders with a more comprehensive framework to make complex decisions.
Your hiring pipeline shrinks
Low overall diversity in your workforce causes a negative ripple effect in your business.
In an SHRM report, nearly 67% of candidates say they seek out organizations with diverse representation. Because top candidates know that a diverse company is an inclusive company.
When top candidates see a lack of representation or a gender wage gap in a company, they often won’t even bother applying. And if top candidates don’t apply, you’re left with a talent pool of potentially underqualified candidates.
Your overall retention decreases
Organizations that have gender wage gaps and don’t provide equal opportunities will ultimately have low employee retention rates.
When retention rates are low, you are forced to spend more money only to hire less qualified talent. And hiring is expensive.
It costs on average $4000 to hire a new employee. That is a hefty price tag to pay time and time again.
Low retention rates also lead to low workplace morale. Employees build relationships and form bonds over time. But it’s difficult to form bonds when employment is a revolving door.
Low morale leads to increased absenteeism, conflicts with co-workers, insubordination, decreased productivity, and poor product or service quality. And that recipe could spell disaster for your organization.
Close the gender wage gap
Ensuring gender equality is critical if your organization wants to outlast the competition. It requires ensuring that all represented groups have the same opportunities and receive fair compensation for their work.
Do you need help attracting more women and minority candidates?
The Mogul community isn't just for diverse professionals. We created it to be a platform to amplify available roles for the companies that employ them.
We’re excited to show you how our Talent Acquisition Platform will provide you with a fully customizable workplace profile so you can attract and source top diverse talent fast.
Schedule a demo with our team at Mogul now.