The Gender Pay Gap is Even Worse for Black Women: Here’s What Companies Can Do About It

In 2022, women earn 17% less than men on average, but the impact is even greater for Black women. According to recent studies, Black women earn only 63 cents to every dollar earned by non-Hispanic white men, highlighting the urgent need for companies to take action against the gender pay gap.

Here are some organizational practices that companies can implement to close the gender pay gap, with an emphasis on the disproportionate impact on Black women:

1. Use Market Salary Data: When determining pay packages, companies should use market salary data to ensure that they are offering equitable compensation for a specific role. By doing so, companies can avoid perpetuating pay disparities
2. Diversify Interviewers: To increase diversity in the hiring process, companies should diversify their interviewers. In particular, companies should aim to create a diverse team of interviewers that are reflective of the candidates they are interviewing. This practice can help mitigate unconscious biases and ensure that a more diverse pool of candidates is selected.
3. Publish Wage Ranges: Companies should publish wage ranges for all levels of roles to increase transparency in the pay determination process. By doing so, employees will be aware of their earning potential, and pay decisions will not be arbitrary. For Black women, this practice can help ensure that they are receiving equitable pay for their roles.

In conclusion, the gender pay gap continues to persist, and it is up to organizations to take concrete actions to close it. The six organizational practices outlined above are a starting point for organizations to address the gender pay gap. By taking these steps, organizations can ensure that pay decisions are based on skills, experience, and job requirements, rather than gender.