To address the pay gap at your company, allocate raises as efficiently as you can — while working within norms of fairness.
with practicing managers have identified another way. Managers need to establish a list of defined priorities around closing the gender pay gap.
The mathematical reasons for this are complex, but the intuition is straightforward. In nearly every workforce, there will be gender patterns in terms of what jobs and qualifications women and men tend to have. For example, women at your firm may be overrepresented in certain departments or tend to have more or less education than men.
Allocating raises efficiently can also result in some employees getting large raises for purely statistical reasons, which could be regarded as unfair by a court or your employees. Further, raising salaries will be received as a signal of strong performance, as opposed to salary correction. Therefore, an employee may point to the raise as evidence that she is a strong performer, even if her work isn’t meeting expectations. This creates complicated situations for managers to handle.
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