New research suggests that businesses can eliminate gender pay gaps, acknowledge exceptional performance, and enhance their compensation plans by locating the root cause of pay disparity and fairly distributing raises to women who are underpaid. The researchers have collaborated with various busi
and David Anderson at Villanova University, call their system the structured approach.
Although adjusted gender pay gaps tend to be smaller than unadjusted pay gaps, most research shows that women are still paid several percentage points less than men for similar work and experience in most fields. New laws in many countries and pressure from stockholders and employees are pushing companies to report and correct gender pay disparities.
“Using the cost-minimization approach, it might be cheaper to close the pay gap by massively overpaying a few women, while leaving many other women underpaid. That just produces a different kind of injustice,” Ross said. “It can also distort incentives that reward better performance.”So, Ross, Bjarnadottir, and Anderson instead offered up their structured approach.
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