What Is the Gender Pay Gap?
The gender pay gap – or gender wage gap – measures the difference between average hourly earnings of men and women, and is usually shown as the percentage by which men earn more than women.
Unlike “equal pay,” which in some regions and jurisdictions legally requires that men and women receive the same salary for the same work, the gender pay gap reflects deeper systemic workplace issues.
No country has completely closed the gender pay gap, and economists say that, at current rates of progress, it could take 134 years to achieve global gender equality. [1]
Note:
To see how the gender gap looks where you live, see the World Economic Forum's Global Gender Gap Report, which offers detailed data and insights.
Several factors contribute to this gap. Women often face challenges moving up the career ladder. They are less represented in high-paying jobs, and encounter biases at work that affect promotions, pay raises, and leadership opportunities.
4 Actions Women Leaders Can Take to Close the Gap
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Closing the gender pay gap requires big changes, led by companies and policymakers. However, women in leadership roles can help speed up progress both through individual and collective action.
1. Advocate for Your Own Worth First
There’s a common perception that “women don’t ask,” but research suggests otherwise – that they do in fact negotiate their salaries, but that they often encounter more pushback than men. [2]
Regardless of the barriers, advocating for your own worth is crucial. Each successful salary negotiation helps chip away at the pay gap. So, take the plunge – go for those bigger roles and high-visibility projects that strengthen your chances of winning a pay raise.
And then don’t forget to "pay it forward," sharing your experience and encouraging other women to confidently ask for what they also deserve.
Let’s Act:
Performance reviews are often influenced by what psychologists call the “recency effect,” meaning that your prospects can hinge on only your most recent achievements rather than overall impact.
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You can counter this by tracking your wins, big and small, throughout the year. You may not need to highlight every single success in your appraisal, but having that detailed record will boost your confidence and ensure that nothing important is overlooked.
2. Partner with HR to Shape the Policies That Affect Women
HR sets the rules, but company culture decides if those rules actually work. For example, despite flexible-working and maternity policies being commonplace in many countries, one study found that 52 percent of U.K. mothers face some form of discrimination related to pregnancy, maternity leave, or returning to work. [3]
Let’s Act:
Even if you’re not in HR, you can still influence workplace policies. Pay attention to how decisions around pay, promotions and flexibility are communicated. If they’re not clear, transparent and fair, start a conversation with senior leaders or allies in decision-making roles.
You don’t need to be an expert in policy to ask the right questions or highlight where improvements are needed. Simply raising awareness of an issue can be the first step toward change.
3. Engage Your Female Networks, and Put Salary on the Agenda
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There’s strength in numbers. When women come together around the gender pay gap, they can magnify their influence and make it harder for wider leadership teams to ignore the issues. Gender networks and Employee Resource Groups provide ready-made platforms to push for change.
Let’s Act:
Make sure the gender pay gap is firmly on your women’s network agenda. They could host discussions and invite HR and senior leaders to Q&A sessions, or organize training around negotiation and self-promotion.
And they can provide safe spaces where women can talk about salaries, and about any biases they may encounter. For ideas about how you can advocate for other women, see our article, How Women Leaders Can Champion Other Women.
4. Engage Male Allies, and Give Them a Clear Role
Many men are in favor of workplace gender equality, but research suggests that good intentions don’t always translate into meaningful action. [4]
Men may fear saying the wrong thing or overstepping, or simply assume that gains have been made and there’s nothing more to be done. Whatever the reason, it’s essential that men are part of the drive for change, calling out bias when they see it, backing women for promotions, and pushing for pay transparency.
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Let’s Act:
Identify your male allies and encourage them to engage with the issue. Invite them to gender network events. Ask them to sponsor or mentor women. Encourage them to notice and challenge microaggressions. A simple question such as, "Would you say the same thing if a man had made that point?" can go a long way.