How benefits can impact gender pay disparity – Employee Benefit News

Report on Corporate Strategies to Address the Gender Pay Gap and Advance Sustainable Development Goals

Executive Summary

A 2024 analysis reveals a persistent and widening gender pay gap, a trend that directly contravenes the principles of several Sustainable Development Goals (SDGs), notably SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). This report outlines the primary factors contributing to this disparity and presents actionable corporate strategies, focusing on benefit design and policy reform, to foster a more equitable workplace. By implementing these measures, organizations can enhance talent retention, promote leadership diversity, and make significant contributions toward achieving global sustainability targets.

Analysis of the Widening Gender Pay Gap

Statistical Overview

Data from the U.S. Census Bureau indicates a concerning regression in pay equity. The disparity is highlighted by the following 2024 median full-time earnings:

• Male Employees: $71,090 (a 3.7% increase from 2023)
• Female Employees: $57,520 (stagnant compared to 2023)

Primary Drivers of Pay Disparity

Several factors have been identified as contributors to the growing gap, undermining progress towards SDG 5 and SDG 8:

1. Sectoral Economic Recovery: Post-pandemic recovery has been more rapid in male-dominated fields like manufacturing and construction, accelerating male wage growth.
2. Reduced Workplace Flexibility: The rollback of flexible work arrangements and return-to-office mandates has disproportionately affected women, who often bear a greater share of caregiving responsibilities.
3. Inadequate Caregiving Support: A reduction in access to caregiving resources places an increased burden on working women, impacting their career progression and earnings. This is a critical barrier to achieving SDG 5.
4. Disproportionate Impact: The negative effects of the pay gap are more pronounced for specific demographics, including women of color, women over 40, and those in leadership positions, highlighting a challenge for SDG 10 (Reduced Inequalities).

Strategic Interventions for Corporate Alignment with SDGs

Advancing SDG 5 and SDG 8 Through Policy and Pay Audits

Shelly MacConnell, Chief Strategy Officer at WIN, recommends that organizations undertake a critical review of internal structures to eliminate systemic biases. Key actions include:

• Conducting Bias Audits: Systematically examine pay levels and promotion processes to identify and rectify unconscious bias.
• Reforming Performance Reviews: Ensure that performance evaluations are based on measurable, achieved outcomes rather than subjective perceptions.
• Analyzing Structural Deficiencies: Use data to assess how current policies regarding flexibility, leave, and benefits may be hindering the attraction and retention of female talent.

Promoting SDG 3 (Good Health and Well-being) Through Enhanced Benefits

A proactive approach to employee benefits can create a more supportive environment for women and advance corporate contributions to SDG 3. Recommended benefit offerings include:

• Comprehensive Family Health: Support for family-building, including surrogacy and adoption benefits.
• Reproductive and Hormonal Health: Provide access to specialists for services related to menopause, andropause, and other hormonal health issues, which can impact all areas of an employee’s well-being.
• Accessible Caregiving and Pediatric Support: Offer virtual platforms for pediatric care and child development support to reduce the burden on working parents and minimize time away from work.

Conclusion: Fostering a Sustainable and Equitable Workforce

By addressing the gender pay gap through strategic policy changes and comprehensive benefit design, corporations can do more than improve recruitment and retention. They can actively contribute to a healthier, more financially stable, and equitable workforce, aligning their operations with the core objectives of the Sustainable Development Goals. Leadership and advocacy at all levels are essential to drive these changes and ensure progress toward gender equality and decent work for all.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 5: Gender Equality

  This is the most prominent SDG addressed. The article’s central theme is the widening gender pay gap, a direct measure of economic inequality between men and women. It discusses how policies, benefits, and unconscious bias in the workplace contribute to this disparity, which hinders gender equality. The article also touches on the disproportionate burden of caregiving responsibilities on women, a key area of concern for SDG 5.

• SDG 8: Decent Work and Economic Growth

  The article directly relates to the principles of decent work by focusing on “equal pay for work of equal value.” The discussion on pay levels, performance reviews, and the need for fair compensation policies aligns with ensuring productive employment and decent work for all. The widening pay gap signifies a lack of decent work for women and affects overall economic growth by underutilizing a segment of the workforce.

• SDG 10: Reduced Inequalities

  This goal is addressed by the article’s focus on reducing the economic inequality between genders. The data presented on the median incomes for men and women highlights a clear inequality of outcome. The article’s call for companies to examine their policies and benefits to create a “more level playing field” is a direct appeal to reduce the inequalities faced by working women, particularly women of color and those over 40, as mentioned in the text.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership in all levels of decision-making.

   The article implies this target by stating that “leadership diversity” is at risk if pay and flexibility issues remain unaddressed. It also notes that “women in leadership positions” are one of the groups being more impacted by the growing pay gap, suggesting that barriers to equal opportunity in leadership persist.

2. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.

   This target is the core focus of the article. The entire discussion revolves around the gender pay gap, with specific data showing that women’s median income ($57,520) is significantly lower than men’s ($71,090). The call to action for companies to conduct bias audits and ensure performance reviews measure actual outcomes is aimed directly at achieving equal pay for work of equal value.

3. Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory policies and practices.

   The article advocates for this target by urging leaders to “look for unconscious bias in pay levels” and to re-evaluate company policies and benefits. The suggestion to consider “the female talent they are not attracting and retaining due to their current work structure and offerings” is a call to eliminate practices that lead to unequal outcomes for women in the workplace.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age and persons with disabilities.

   The article provides a direct measure related to this indicator. It explicitly states the “2024 median full-time earnings: men $71,090 (+3.7%); women $57,520 (flat).” This data point is a clear metric for the gender pay gap and can be used to track progress (or lack thereof) towards Target 8.5.

2. Indicator 5.5.2: Proportion of women in managerial positions.

   This indicator is implied when the article mentions that “leadership diversity” is at risk and that “women in leadership positions” are disproportionately affected by the pay gap. While no specific percentage is given, tracking the representation of women in leadership is a clear way to measure progress towards ensuring equal opportunities, as discussed in the text.

3. Indicator 5.4.1: Proportion of time spent on unpaid domestic and care work, by sex, age and location.

   The article implies the relevance of this indicator by identifying caregiving as a key factor in the widening pay gap. It states, “If women continue to be the default parent the caregiving responsibilities of the sandwich generation fall to them.” This suggests that measuring the unequal distribution of unpaid care work is essential to understanding and addressing the root causes of economic inequality between genders.

SDGs, Targets, and Indicators Table

Source: benefitnews.com