In a previous article, we discussed the gender divide in the financial services industry, focusing on issues such as the gender pay gap and differing promotion opportunities. In this blog, we outline new WTW research that explores what it takes to address the gender pay gap.

According to WTW, there remains a pervasive disparity in pay across genders in all industries. In traditionally male-dominated industries such as construction, the gender pay gap is more pronounced. Additionally, low female representation in more senior roles and higher paying jobs drive the discrepancy.

However, delivering fair pay to all employees is an integral part of the employee experience and helps firms to attract the best talent. This extends to the whole rewards package, including base pay, benefits, career progression, and wellbeing. This implies firms need to design policies that benefit employees at all stages of their career lifecycle, as well as utilise analytics to help them boost the employee experience in a sustainable manner.

Before hiring an employee, firms should develop a consistent and robust job architecture and levelling framework to determine starting salaries. Policies on hiring and promotion should be clear and objective. The remuneration package should meet the needs of a diverse workforce. Within the company, managers should clearly communicate to employees the specific benefits they can access while embedding ethical components into training programs, such as modules on anti-discrimination and inclusion. Furthermore, regular oversight can act as a key lever to implementing and maintaining equal pay.

A fair and equitable rewards system helps companies become more competitive while delivering positive outcomes for employees. In the new evolving environment, a purposeful focus on bridging the pay gap becomes an increasingly important part of the business strategy.