Hello there,
How are you doing?
I know the #GenderPayGap is a boring subject and you may not read past this sentence. Trust me, I did not imagine I will write about it too; this topic was not even on my immediate radar, I still ventured to cover it because:
Women do not take their personal finances as seriously as men do (being a woman I can vouch for this). Plus, women do not know much about the #GenderPayGap and what they can do about it.
Flexing It research has found that women in freelancing earn less than men and the #GenderPayGap increases as experience levels rise (women freelancers with 16+ years of experience earn 45-50% less in fees). They have also observed that women consultants quote lower fees.
As three-quarters of the global part-time labour force, women were hit hard when part-time jobs fell 70% in the first 11 weeks of the pandemic.
When I put out a short Twitter thread about why the #GenderPayGap still exists, a few women I hold high in regard said this (tweets). This was all the trigger I needed to delve much deeper and understand the situation on-ground.
My humble endeavour is to create awareness and urge women to know their rights about #EqualPay.
I had to write this for Benedict Cumberbatch (click link to know why).
Part I: Origins of the #GenderPayGap
1) World War II
During WWII women worked in factories producing munitions, building ships, aeroplanes, in the auxiliary services as air-raid wardens, fire officers and evacuation officers, as drivers of fire engines, trains and trams, as conductors and as nurses. During this period some trade unions serving traditionally male occupations like engineering began to admit women members.
The entry of women into occupations which were regarded as highly skilled and as male preserves, for example as drivers of fire engines, trains and trams and in the engineering, metal and shipbuilding industries, renewed debates about equal pay. The trade unions were once again concerned about the impact on men’s wages after the war when men would once again be working in these jobs. But the government’s priority was the recruitment of workers to service industries and the war effort. Some limited agreement on equal pay was reached that allowed equal pay for women where they performed the same job as men had ‘without assistance or supervision'. Most employers managed to circumvent the issue of equal pay, and women’s pay remained on average 53% of the pay of the men they replaced. Semi-skilled and unskilled jobs were designated as ‘women’s jobs’ and were exempt from equal pay negotiations. [1]
After the war, men returned to work and women to child bearing & rearing and household chores. However, that did not last long. In the 1960s, married and unmarried women were back to work and recorded the highest numbers of women-in-labour force in history. Though something changed. Since men were part of the workforce too, a lot of positions that women occupied during the war, were now taken up by men. Hence, women had to turn to ‘female-oriented’ roles. This created part of the #GenderPayGap issue as we know it today.
PayScale.com reports that even in 2020, women make only $0.81 for every dollar a man makes.
Motherhood Penalty
Another large reason for the #GenderPayGap is the motherhood penalty, which is nothing but an assumption that women will either leave the workforce or take breaks for child bearing and rearing. Pew Research Centre found that 42 percent of women said they have experienced gender discrimination at work compared to 20 percent of men who said the same.
Disparity in Financial Planning
India hosts the largest population of working women in the world. Additionally, the needs of the modern Indian woman are constantly evolving. She is choosing to stay single for longer, participating more in household financial decisions. She is fiercely ambitious and aspirational (her aspirations include lifestyle and travel goals).
Basis, an app-based platform that empowers women to find financial freedom, conducted primary research covering over 500 urban women in the 24 to 45 age range. The results highlighted a glaring problem that needs addressing:
Women have the money to invest but they don’t know enough and are looking for ways to learn and start. 70% of the women surveyed have saved enough money to invest. However, 60% of the women indicated that they are not confident about investing. Their lack of knowledge and low confidence are a barrier that needs to be overcome.
Part II: What should women know about the situation today and what are our tools?
2020: The situation on-ground.
In India, the crisis has affected the migrant workers and especially women workers owing to the shutting down of several factories and establishments during the lockdown period. This has made women even more vulnerable. Amidst the lockdown period from March 2020 onwards, several States in India also suspended key labour laws, which added to the desperation of migrant workers. In times of such crisis, women face increased financial instability. According to the International Labor Organization (ILO), 81% of Indian women are working in the informal sector[2], which is the worst hit. The Covid – 19 pandemic has intensified the cracks in the system and gender-sensitive policies are the need of the hour.
What does the Indian Constitution say?
In India, laws governing pay disparity are presently enshrined in the Indian Constitution and under the Equal Remuneration Act, 1976 ("Act") and the Equal Remuneration Rules, 1976. Article 15 of the Constitution guarantees a right against discrimination. Article 15(3) allows the State to make special provisions for women and children. Article 16 of the Constitution provides for equal opportunities in matters of public employment. Article 39(a) states that all the citizens, men and women equally, have the right to an adequate means to livelihood and Article 39(d) of the Constitution provides for equal pay.
The Act provides for the payment of equal remuneration to men and women workers and provides for prevention of discrimination, on the grounds of sex, against women. Section 4 of the Act states that it is the duty of the employer to pay equal remuneration to men and women workers for the same work or work of a similar nature. The Act defines "same work or work of a similar nature" to mean work in respect of which the skill, effort and responsibility required are the same when performed under similar working conditions by a man and woman and differences, if any, between the skill, effort and responsibility required by a man and woman are not of practical importance in relation to the terms and conditions of employment. Further, Section 5 of the Act states that no employer shall discriminate against a woman while recruiting for the same work or work of a similar nature, or in any condition of service subsequent to recruitment such as promotions, training or transfer. The Act also provides for penalties for employers in contravention of the Act.
Shared by Ashima Obhan, Partner, Obhan & Associates
#GenderPayGap: a combination of being ‘hush-hush’ and ‘lack of negotiation skills’.
“In most organisations, salaries are confidential and in case employees take up pay issues to their Managers/ HR, they are at the risk of getting fired,” said Monica Pillai, Head of People Operations at Obvious.in, a product and strategy consultancy for startups that has a public-by-default equal employment and pay policy Obvious.in also has a fair compensation policy where pay scales are made open and weightage is given to skills more than experience.
Pillai who has over 20 years of experience working in HR and Compensation & Benefits teams says that women are fine-tuned to accept pay hikes and promotions (or the lack of it) without questioning employers as they believe in hard work being paid off. However, that is taken as a sign of lack of negotiation skills* that sometimes works against women. She talks of negotiation as a ‘learned skill’ that women have to hone to ensure they are well-compensated for.
“In many cases pay itself is seen as a factor of merit. Meritocracy is used as an argument against diversity, which explains why people don’t believe that the pay gap even exists. As a simple example, if you can’t stay back at night, then you are not seen as hard-working. If you do, then the price of your safety becomes an issue. This is where meritocracy fails and puts women to a disadvantage,” believes Sanchita Agarwal, Co-Founder, WomenDroid (a community for women interested in Android).
* Unfortunately there are almost no credible salary benchmarking tools for different industries and experience levels and a lot is left to luck and the employers. For knowledge workers this is still an extremely grey area with more companies giving precedence to skills than experience these days.
Finally, it has to be a collective effort.
According to Aparna Mittal, a leading Diversity and Inclusion advisor, corporate Lawyer and Founder, Samāna Centre, a consultancy focused on equality, diversity and inclusion with an aim to empower women (and men), transgender persons and the LGBTQ community, in a multidimensional manner.
1) Indian law enshrines principles of equality and non discrimination and workplaces in India are required to ensure there is equal pay for equal work irrespective of gender. Each workplace should have transparent policies and processes to comply with this requirement.
2) When maternity-returnees get back to work, workplaces should create an enabling environment, and the maternity break should not be used to artificially create a #GenderPayGap.
3) When joining a workplace women should seek to understand the detailed terms (including remuneration) provided in the offer letter, and also seek to understand the policies the workplace has, including their commitment to non discrimination, and mitigating any actual / potential #GenderPayGap.
To conclude in the words of Hena Mehta, Founder and CEO of Basis, “Change has to start from the top, and leaders must pledge and commit to fix these discrepancies. If the government can intervene and hold companies accountable, that would be a massive win.”
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Honestly, much can be written about this topic and anything written to create awareness is less/ incomplete/ inadequate, like this post may seem. However, please leave your feedback/comments for anything else you would want me to pursue around this topic/ or otherwise and I will try my best to.
Footnotes:
[1] Source: https://www.striking-women.org/module/women-and-work/world-war-ii-1939-1945
[2 ]https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_626831.pdf
Story behind the #GenderPayGap. And Benedict Cumberbatch.
Interesting article Nisha
Thanks Nisha for the quote. Excellent research in the article. The more we talk about it and bring this to everyone's notice hopefully the needle will start moving. Everyone needs to make a BiG NoISe about it !