Source: Fortune
Summary
Despite the spread of pay transparency laws, the gender pay gap is getting worse, with women’s earnings barely rising in 2024 while men’s increased by 3.7%. At the Fortune Workplace Innovation Summit, Maria Colacurcio, CEO of pay equity software company Syndio, and Hannah Williams, founder of Salary Transparent Street, discussed how companies’ inability to explain their pay decisions is a major contributor to the problem. They emphasized the need for companies to have a clear pay philosophy and strategy, and to communicate it to employees. The EU Pay Transparency Directive, which takes effect on June 7, will require companies to provide employees with information on the median salary of colleagues doing comparable work.
Our Reading
The numbers tell one story. Companies are struggling to explain their pay decisions, leading to inconsistencies and a growing pay gap. Maria Colacurcio notes that companies’ thoughtful strategies are often undermined by ungoverned daily decisions. Hannah Williams’ viral content creation has shown that most people can’t articulate why they make what they make. The EU Pay Transparency Directive will “crack this nut wide open” for global employers. Companies need to have a clear pay philosophy and strategy, and communicate it to employees. The taboo of talking salaries is still a challenge, but transparency can help breed empathy and understanding.
Author: Evan Null
