Facebook Facebook icon Twitter Twitter icon LinkedIn LinkedIn icon Email

Diversity, Equity, and Inclusion

Closing the gender pay gap: be open honest … and radical

IbyIMD+ Published 21 September 2023 in Diversity, Equity, and Inclusion • 7 min read • Audio availableAudio available

Research suggests that banning salary histories may not help level the playing field between men and women. It’s time for organizations to take bolder action on pay.

Things are looking up for women in leadership in countries such as the UK. Statistics released by the British government in 2020 showed that just under 40% of board positions in FTSE 100 companies were held by women – an increase of almost 30% in just 10 years. And it’s not just the UK. There are signs that women’s global share of leadership is trending upwards, with the World Economic Forum reporting a three per cent rise between 2020 and 2022. The share of women hired for senior jobs around the world last year came in at 36.9%, according to its findings. But while stats like these are cause for some cheer, the overall picture remains gloomy. 

Women continue to earn less than men in virtually every sector, organization, and country in the world. In the European Union, the gender pay gap is 12.7% in gross hourly earnings. That rises to 17% in the US, with women’s median weekly earnings just 83.1% of men’s wages in 2021, according to the US Bureau of Labor. Perhaps…

Corporate membership

Login and subscribe to IbyIMD+ subscription

Explore first person business intelligence from top minds curated for a global executive audience