Globally,
women earn significantly less than their male equals. The gender pay gap on
the international scale currently weighs in at about 20%.
Simply
put, the term ‘‘gender pay gap’’ refers to the difference of average earnings between
men and women. The term has taken centerstage globally and remains in the
spotlight. In South Africa however, the topic seems peripheral to discussions
this Human Rights Day.
The
International Labour Organization, in its Global Wage Report of 2018/19, found
that South Africa has one of the highest wage inequalities among 64 other
countries. A 2017 report by the World Economic Forum revealed that South
African men earn an average of R 6600.00 more than women on a monthly basis.
Apart from the fact that this disparity hinders economic growth, it also
infringes on a woman’s human right to equality as it stems from unfair discrimination.
Notwithstanding the South African legal system prohibiting discrimination, the
gender pay gap remains a challenge in the country.
What does the
South African law say?
Section
9 of the Constitution of South Africa guarantees its citizens equality and
freedom from discrimination.
The
Employment Equity Act (the EEA) protects
employees from unfair discrimination on listed grounds, which includes gender
and sex.
The EEA underwent
amendment in 2014 to introduce an “equal pay for work of equal value’’
provision. This provision, as regulated by Section 6(4) of the EEA, stipulates
that a difference in terms and conditions of employment between employees of
the same employer performing the same or substantially the same work or work of
equal value that is directly or indirectly based on gender constitutes unfair
discrimination.
A Code of Good Practice on Equal
Pay/Remuneration for Work of Equal Value provides that the equal pay principle regulates
workplace discrimination and
the undervaluing of work on the basis of a listed, or any other arbitrary,
ground, these listed grounds including gender and sex.
Despite
these measures, the magnitude of the gender pay gap remains substantial. This
essentially means that businesses continue to discriminate against women and
perpetuate the inequality thereof.
What can South African businesses do to
close the gender pay gap?
Every employee, regardless of their gender, deserves fair
remuneration. Workplace equality in itself should be the primary motivating
factor for a business to bridge their wage gap. Counteracting the disparity also
benefits the company as it avoids legal
action and the compromising of reputation, attracts and preserves optimum
talent and skill and establishes employee trust, all of which, contributes to
the strengthening of our labour market and economy at large.
Businesses can make use of the following tips in
addressing the gender pay gap within their enterprise:
1) Conduct a
gender review analysis
Businesses must
review their gender pay gap and identify the internal factors that contribute
to the disparity. The business should review its employee’s salaries, benefits
and bonuses. The analysis should also consider the concentration of males and females
at the different management levels in their business. The analysis must also
consider the business’s hiring practices in ascertaining the fairness thereof.
2) Price the job, not the person
A salary range
should be established for a particular position and this should be strictly adhered
to. Employee’s salaries should be objectively proportional to their
qualifications, skills and talents, regardless of their gender. Employees performing
the same job should be standardly remunerated at the same rate as their
equivalent colleague.
3) Invest in your female leaders of tomorrow
If your
business is deficient in gender diversity in terms of its management, quotas
should be established and timelines set for addressing the deficiency of women
in senior positions. Prioritize the placing of female employees in the C-suite
and recruit prime class female employees and leaders into the business’s
employ. Establish internal management training programs and provide your
current female employees with the necessary training and resources enabling them
to embark on the next career level. When it comes to promotions and hiring,
line managers must understand the impact of gender-bias on their
decision-making and performance reviews.
Gender equality is a critical component determining
an organization’s success as it enables them to perform at the highest level.
It requires ensuring that women and men have the same opportunities and are remunerated
fairly for their work. Considering that businesses are at the forefront of this
battle, it is inevitable that the bridging of the gender pay gap can only stem
from changes within the organization’s employment structures and hiring processes.
By Sherianne
Pillay
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