Driving Inclusion: How HR Execs Can Champion Gender Equity and Close the Pay Gap

By SHRM Editorial Staff

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Addressing gender pay equity offers organizations a way to enhance their performance amid uncertain economic conditions. Pay equity is an important part of creating an inclusive workplace culture have significant business benefits. "SHRM research has shown that fair and equitable pay practices can lead to improved employee satisfaction and engagement, which results in lower turnover, which leads to benefits to an organization's bottom line," said Annemarie Schaefer, vice president of business intelligence at SHRM.

Gender equity begins before candidates even walk through the door. In a survey of more than 1,000 women by The Muse job board, 79 percent of women cited they are more likely to seek out companies that have equal representation of women in managerial/leadership positions when looking for a new job. This underscores a crucial point: Inclusivity is not merely an internal benchmark but a key attractor for top talent

To help build representation across roles, leaders must look to overcome one of the biggest barriers to gender equity—the persistent pay gap. Payscale's 2024 Gender Pay Gap Report notes that on average, women make 83 cents on the dollar compared to men – a figure unchanged from the previous year.

This inequity directly impacts retention and engagement. A study by Indeed showed 81 percent of workers surveyed are more productive and engaged when they perceive themselves as being paid fairly.

What does it take to tackle the pay gap and improve performance?

Diego Rivera, a senior pay equity consultant at Syndio, a pay analytics platform, recommends a proactive approach–asking yourself what you can do to prevent a pay gap from the start. How is your organization addressing implicit bias? Are policies set up with a system of checks and balances to help root out bias? Where do mentorship and other programs to create opportunities fit into organizational priorities? These questions fuel actions that become part of a long-term strategy addressing pay fairness.

Rivera notes these actions allow organizations to benefit from the perspectives offered by diversity in the workforce. "Pay equity allows all of those different perspectives to sit at the same table and for those synergies to start evolving. And that's where great ideas emerge."

Prioritizing gender equity and pay fairness isn't just about compliance–it's about securing long-term success. Addressing the pay gap enhances recruitment, improves retention and drives engagement, all of which are critical to organizational resilience.

This article has been paid for by a third party. The views and opinions expressed are not those of Newsweek and are not an endorsement of the products, services or persons mentioned.