The Gender Pay Gap

 

  The gender pay gap is a known fact which is used to describe the difference in male and female wages for similar work during their careers. This gap of information in HRM serves to highlight many problems concerned with justice, fairness, and even effectiveness of the organization. Tackling and studying the gender pay gap is one of the most essential tasks for the HRM professionals in creating workplaces where all staff members are treated equally and fairness is guaranteed (Strittmatter and Wunsch, 2021) . As the World Bank (2024) states, women around the world perform the same work men do, but make only 16% less than men do. The International Labor Organization reported that as of 2023, the world’s gender pay gap was 19.1 percent. The figures portrayed here are eloquent enough to present the gap as a very common challenge despite all the efforts that have been made to make women equal. Such regional differences are also evident, the rates of disparity being lower in the dev...

  Among the causes of the gender pay gap is an intricate combination of various factors each of which influences men and women being paid at different levels. Occupational Segregation is one of the main causes of wage disparity between men and women, and it occurs when the two sexes tend to congregate in different industries and occupations. Women are mostly concentrated in lower-paid industries like caregiving, education, and some administrative jobs, but men usually are in the higher paid industries like technology, finance, and engineering (Bennedsen et al. , 2016) . Such occupational segmentation is the main reason why women’s work is paid less than men’s, because the jobs mainly done by women are practically always considered less valuable and are paid lower than those traditionally performed by men. Discrimination , which also exists in overt and subtle form, is still the main obstacle for pay equity. To be honest, despite the existing laws on gender-based discrimination...

  The gender pay gap has a deep impact on the psyche of individuals, the efficiency of the organization and the formation and sustainability of the society. The first level of explanation is the fact that women are likely to experience the consequences of such situation as they are paid less compared to men (Aksoy, Özcan and Philipp, 2021) . This difference not only defers the wellbeing of their own selves and their families, but also is likely to make the cycle of poverty and inequality persist (Fuchs et al. , 2021) . The gender pay gap in the corporate world weakens employee performance, engagement, and motivation in the organization. Employees who feel that the compensation system is unfair rapidly lose faith in the company's leadership and hence, the organizational culture suffers (Roethlisberger et al. , 2023) . Besides, disparities in pay often lead to higher attrition of qualified women who seek better prospects elsewhere, thus, the financial burden for the recruitment and...