Employers Join Consortium to Close Gender Wage Gap

Kathy Gurchiek By Kathy Gurchiek April 8, 2019
Employers Join Consortium to Close Gender Wage Gap

​Starbucks has pledged to eliminate the gender pay gap and join the Employers for Pay Equity Consortium.

Twenty-six organizations signed the pay equity pledge on April 2—Equal Pay Day—including Accenture, Chobani, Cisco, Deloitte, Ikea, L'Oreal, Lyft, Pepsico and Starbucks.

The pay equity practices and tools Starbucks pledged to uphold include

  • Not asking job candidates about their salary history.
  • Removing caps on promotional increases.
  • Providing the pay range of a position when requested by a candidate.
  • Using an offer standards calculator to determine starting pay range for roles.
  • Publishing pay equity progress annually.
  • Conducting comprehensive compensation analyses.
  • Analyzing compensation decisions before they are finalized.
  • Addressing any compensation differences between men and women performing similar duties.
  • Not retaliating or discriminating against employees who ask about or discuss wages.
Those principles "were created not only to help us but also other organizations and businesses seeking to eradicate the pay gap," CEO Kevin Johnson said.

"While the signatories to the Pay Equity Principles represent different industries facing different challenges to achieving pay equity, we all agree that by working together we can accelerate the elimination of the national pay gap."

Starbucks has 30,000 stores in 75 countries around the world. In 2018, Starbucks announced it had reached 100 percent gender and racial pay equity for men and women performing similar work in the U.S. At the company's annual shareholders meeting in Seattle in March, Johnson announced that China and Canada—two of the company's largest international markets—are the first in those markets to verify they also have reached gender pay equity.

SHRM Online collected the following articles from its archives and other sources that looked at how employers can work to close the gender pay gap.   

5 Things You Can Do Today to Close the Gender Pay Gap at Your Company 

The salary disparity between women and men is real. Here's what every company should do about it. 

Want to Close the Pay Gap? Pay Transparency Will Help

Workers are more motivated when salaries are transparent. They work harder, they're more productive, and they're better at collaborating with colleagues. Across the board, pay transparency seems to be a good thing. Transparency isn't just about businesses' bottom line, however. Researchers say transparency is important because keeping salaries secret reinforces discrimination.
(The New York Times)  

EEOC Wants Pay Data Reports by Sept. 30 

The Equal Employment Opportunity Commission (EEOC) told a federal judge April 3 that it plans to require employers to turn over pay data, broken down by race, gender and ethnicity, by Sept. 30. Businesses with at least 100 employees and federal contractors with at least 50 employees and a contract of $50,000 or more with the federal government must file the EEO-1 form. The EEOC uses information about the number of women and minorities companies employ to support civil rights enforcement and analyze employment patterns, according to the agency. 
(SHRM Online)   

[SHRM members-only toolkit: Managing Pay Equity]   

Best Practices Guide for Closing the Gender Wage Gap 

This guide addresses practices employers can implement right away and over time to address the gender wage gap and make their companies more attractive to potential employees.
(Salt Lake City Chamber of Commerce)  

Unequal Career Advancement Fuels Gender Pay Gap 

The primary driver of gender pay inequality is the "opportunity gap"—the barriers that keep women in lower-level, lower-paid, individual-contributor positions compared to those held by their male executive and management counterparts, new data reveals.
(SHRM Online)   

Why Companies' Attempts to Close the Gender Pay Gap Often Fail

Many firms have hired external pay consultants and law firms to identify whether they may have a problem with the pay gap from either an HR or legal perspective and to offer possible remedies. 

But in our view, the most common approaches for identifying a pay gap and resolving it are full of pitfalls for the unwary. That's because it's a tall order: you have to calculate the gap the right way and figure out how to fix it without ballooning your wage bill, all while truly helping underpaid women, maintaining your incentive structure, and avoiding the creation of new legal liabilities. 

The Narrowing, but Persistent, Gender Gap in Pay 

Much of the gap has been explained by measurable factors such as educational attainment, occupational segregation and work experience. The narrowing of the gap is attributable in large part to gains women have made in each of these dimensions. But other factors that are difficult to measure, including gender discrimination, may contribute to the ongoing wage discrepancy. 
(Pew Research Center)



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