Creating a Positive Business Environment

What Is The Pay Gap Analysis And Why Is It So Important?

by Ritthy Collins

Some people are unaware of the pay gap that exists between women and men. While more business owners are taking the necessary steps to narrow the gap and ensure that their female employees are earning a fair wage compared to their male co-workers, there is still a large pay gap between men and women in general. It appears that men have traditionally earned higher wages than women have. It is not because women are unable to perform or handle some of the same tasks as men. It is simply because gender inequality exists in different workplaces.

What Is a Pay Gap Analysis?

A pay gap analysis is an examination of the wages earned by women and men in the workplace. Business owners should perform a pay gap analysis to determine the difference between wages earned by women and men. It allows business owners to see how much more their male employees are earning compared to women who hold the same positions and have been working in the industry for the same amount of time. Business owners that truly care about gender equality should make the pay gap analysis a priority to ensure that both women and men in the workplace are earning a fair wage. Men should not receive more money than women while performing the same job just because of their gender. The pay that an employee receives should be based on their experience, education, work ethic, and the number of years that they have had the job.

How Is the Pay Gap Analysis Performed?

When employers want to determine information on the wage gap between female and male employees, they can use a pay gap analysis tool to quickly and easily calculate the difference between wages. While using the tool, business owners can input information on the wages earned by each employee and then divide that total based on how many employees currently work for the company. The pay gap analysis tool makes it much less complicated for business owners to figure out if there is a large pay gap. When they have this information, they can make important decisions within the workplace to adjust wages to make things fair.

Unfortunately, pay gaps still exist in the workplace between women and men. Many women are earning less than their male co-workers, even though they have the same education and experience required for the jobs they have. When business owners care about gender equality, they should perform a pay gap analysis and then work on taking steps to close that gap.