Here Are Clear Examples from Fintech of How You Can Erase Your Gender Pay Gap
International Women’s Day serves as a powerful reminder of the ongoing discussions surrounding the gender pay gap—the disparity in average earnings between men and women. This issue highlights not only unequal access to higher-paying positions but also the broader implications of bias and discrimination in workplaces. As we reflect on these challenges, it’s essential to look at the fintech sector, where some companies are actively working to bridge this gap.
Move on from Why
Trier Bryant, a former Chief People Officer and founder of a People/HR consulting firm, emphasizes that successful companies are those where leaders understand the importance of diversity. She notes that many organizations spend excessive time discussing why pay parity matters, often neglecting the necessary actions to achieve it. By linking diversity, equity, and inclusion (DEI) initiatives to business goals, companies can focus on actionable steps that lead to meaningful change. Bryant’s experience shows that understanding the “why” is crucial, but it must be paired with a commitment to “how” change will be implemented.
Treat the Request Fairly
Tiama Hanson Drury, Chief Product Officer at Minna Technologies, has witnessed firsthand the challenges women face in salary negotiations. She has taken it upon herself to drive fair pay practices within her organization. By establishing clear processes and mentoring managers, Drury ensures that salary requests are treated objectively. This approach not only empowers women to negotiate confidently but also fosters a culture of fairness and transparency in compensation discussions.
Move Away from Percentages
Sarah Häger, CCO of Enable Banking, advocates for a shift in how salary increases are discussed. Instead of relying on percentage-based raises, which can perpetuate existing disparities, she encourages organizations to focus on absolute terms. By halting salary increases for the highest earners until parity is achieved, companies can create a more equitable pay structure. Häger’s approach highlights the importance of a long-term perspective when addressing gender pay gaps, ensuring that all employees are considered in compensation discussions.
Review and Reset
Yaiza Luengo, a seasoned COO in the financial services sector, believes in the necessity of correcting past mistakes. She suggests that companies should separate “edge cases” from regular compensation discussions, allowing for a more thorough review of pay equity. By adopting a transparent and honest approach to addressing disparities, managers can take proactive steps to eliminate gaps that should not exist. Luengo’s insights underscore the importance of continuous evaluation and adjustment in compensation practices.
Be Transparent
Transparency in payroll systems is a critical factor in reducing pay gaps. Sherree Tibbs, Director of Operations at Fundipedia, advocates for the use of pay bandings to promote equitable compensation across the organization. By ensuring that all employees understand job descriptions, expectations, and corresponding pay bands, companies can foster a culture of openness. Tibbs emphasizes that transparency can work effectively if organizations commit to it and avoid making exceptions.
The Future Demands It
According to research by EY and workforce advisory principal Stefanie Coleman, businesses must embrace radical transparency to remain competitive. With Gen Z entering the workforce, there is an increasing expectation for real-time access to compensation data. This generation, having grown up in a digital world, is more likely to seek out information about pay equity. Companies that recognize this shift and prioritize transparency will not only attract top talent but also contribute to reducing the gender pay gap.
As we navigate the complexities of the gender pay gap, the examples set by these fintech companies provide a roadmap for meaningful change. By focusing on actionable strategies, fostering transparency, and committing to equitable practices, organizations can take significant strides toward closing the gap. The challenge remains: will companies engage in genuine action, or will discussions fade without impactful results? The future of pay equity depends on the choices made today.