The Persistence of the Gender Pay Gap - Essay Example

QUESTION: Despite government efforts to reduce discrimination (for example, the Sex Discrimination Act and the Equal Pay Act) the median male wage isstill 12.8% higher than that of women (ONS). Account for the persistence of the gender pay gap and propose how you would eliminate it? HUMAN RESOURCE MANAGEMENT Introduction: Human resource department is one of the most important sections of an organisation and corporate firm that serves as the liaison between all the departments of the organisation on the one hand, and responsible for the selection, recruitment, placement, salary determination and increase, and promotion of the staff members, employees and workers on the other. It is also responsible for the devising of strategy and its apposite implementation on the staff members, conducting training sessions for them and arranging seminars, meetings and discussions for the boosting up of their morale. In addition, forecasting, planning, allocation of resources and keeping the work environment healthy, steady and peaceful are also included in the responsibilities of human resource department. Human resource department also maintains equilibrium within the organisation and condemns any type of discriminatory behaviour on the basis of caste, class, community, ethnicity, race, religion, age-group, sexual orientation and gender, where no biasness or prejudice could be inflicted upon the employees on the basis of above-described characteristics. “HR Managers are usually the ultimate sources of expert advice and guidance on harassment and discrimination in their centres. They need to be knowledgeable of centre’s policy but also have an understanding of harassment and discrimination beyond the policies themselves.” (Retrieved from genderdiversity.cgiar.org) Consequently, sexual discrimination is strictly prohibited in workplace, and the persons guilty of such acts are liable to be tried at the court of law. The government has strictly condemned gender discrimination in work places at both governmental and private sectors. It has issued decrees and passed anti-discriminatory laws including Sex Discrimination Act 1975 and the Equal Pay Act, so that the female employees could also obtain same status equal to men at organisations and work places. Sex Discriminatory Act: According to the Section 1 (1) of the Act: “1.-(1) a person discriminates against a woman in any circumstances relevant for the purposes of any provision of this Act if- (a) On the ground of her sex he treats her less favourably than he treats or would treat a man, or (b) He applies to her a requirement or condition which he applies or would apply equally to a man but- (i) Which is such that the proportion of women who can comply with it is considerably smaller than the proportion of men who can comply with it, and (ii) Which he cannot show to be justifiable irrespective of the sex of the person to whom it is applied, and (iii) Which is to her detriment because she cannot comply with it.” (Retrieved from opsi.gov.uk) Hence, the above-described provisions of Sex Discrimination Act 1975 manifestly view discrimination between men and women on the basis of their gender as the discriminatory one. Though, the act has been in vogue for the last three and half decades, yet it is mere theoretical in nature; as in practice, women workers and employees are victim to gender discrimination all over the country at both public and private sectors. The Institute for Women’s Policy Research (IWPR) also points out towards the same facts and vehemently declares it a constant threat against the statutes of prevailing law. The institution, on the basis of the facts and figures, mentions how swiftly the gap between the wages of men and women is in increase in the country. “The ratio of women’s and men’s median annual earnings in 2008 was 77.1 for full-time, year-round workers, down from 77.8 in 2007. (This means the gender wage gap is now 22.9 percent.) The annual earnings figure reflects gender differences in both hourly wages and the number of hours worked each year by full-time workers.” (iwpr.org) The Institute is of the opinion that these figures mere reflect full time wages ratio between the genders. And the percentage of wages obtained by men would be far higher in part-time and part-year workers. The Institute also points out that the women also witnessed 2.0% fall in their annual earnings during 2007---2008, which affirms their concerns regarding the discriminatory attitude against the female workers at massive scale. The Gender Earning Ratio, 1955-2008, Full-Time Workers The above figure shows that there has always been imperative difference in the wages ratio between male and female full time workers in the UK, though the difference has started decreasing gradually. Thus, female workers observe discriminatory behaviour in almost all areas, professions, occupations and departments. Marginal Productivity Theory of Wages: Articulated by Clark & Wicksteed by the end of 19th century, Marginal Productivity Theory of Wages lays stress upon the determination of the salaries, pays and wages on the foundation of the productivity generated by the employees while rendering their services in an organisation. “The theory submits that firms will pay a productive agent only what he or she adds to the financial earnings of the firm.” (encyclopedia2.thefreedictionary.com) The theorists are of the opinion that the workers and employees should be hired against the education and skill they contain, so that they could be paid against the services they make for the growth and development of their workplace. Despite these facts described in the Productivity Theory of Wages, the income gap between the genders is still a valid phenomenon in every society and business environment, and wages are seldom determined on the productivity of the employees and without gender discrimination as well. “Women make”, Longley (2004 states, “only 75.5 cents for every dollar that men earn, according to a new release by the U.S. Census Bureau. Between 2002 and 2003, median annual earnings for full-time year-round women workers shrank by 0.6 percent, to $30,724, while men’s earnings remained unchanged, at $40,668. The 1.4 percent decrease in the gender wage ratio is the largest backslide in 12 years (since 1991). The 2003 Census data also show the first decline in women’s real earnings since 1995.” (Quoted in usgovinfo.about.com) Though the data shows that income gap between the genders is mitigating gradually, yet no one can deny the very reality that women are still victim of earning less income against the same services rendered by their male co-workers and colleagues. Case Study: Lee (2005) has affirmed the presence of racial, religious, ethnic and gender-based discrimination in all societies of the world at large. He has cited the example of an African American woman named Deborah, who underwent sexual harassment and discriminative behaviour at her work place. Working as an administrative assistant for her employer for the last many years, she had displayed her capabilities and skills in a magnificent way. But even then she had to face sexual harassment at the hands of a new director, who tried to terminate her services because she had refused to comply with the demands made by the new director called Joan. “One of only a handful of minority employees”, Lee (2005: p 481) notes, “Deborah became subjected to increased scrutiny by Joan, who singled her out by requiring her to document her use of time at work. Relations were strained between the two, culminating in Deborah’s termination for failure to meet with Joan to discuss her job responsibilities.” Since Deborah was well acquainted with the very fact she was not at any fault, so she complaint against the Joan’s malafide intentions. “Joan’s stated reason for terminating Deborah appears pre-textual given that Deborah agreed to meet with her; because Deborah felt harassed, she had requested the presence of a supportive direct supervisor, a move recommended by the employee manual.” (Lee, 2005: p 482) Deborah has led a Title VII race and gender discrimination complaint against her employer in federal district court, which restored Deborah to her previous position. Causes of Income Gap between the Genders: One of the most significant causes raised in favour of the higher wage level for men includes the concept that men are more hardworking and stronger than women and hence can apply more energies and vigour at their workplace in comparison to women. But Lips (2008) refutes the theory altogether. “A close look” Lips observes, “at the earnings of women and men who work 40 hours or more per week reveals that the wage gap may actually widen as the number of hours worked increases. Women working 41 to 44 hours per week earn 84.6% of what men working similar hours earn; women working more than 60 hours per week earn only 78.3% of what men in the same time category earn.” (Retrieved from womensmedia.com: Source: Bureau of Labour Statistics) Another major cause of the low wages paid to women is the concept that women are apt to surrender their financial ambitions after getting married. Pregnancy and expecting a baby is also a hurdle on the way to obtaining the salary equal to male workers. The employers adopt discriminatory behaviour towards them during initial days of pregnancy considering them as burden on their organisation. Moreover, since women are dependent of their fathers and spouses, they often change the city as soon as their fathers or husbands are transferred from one area or region to the other. The employers keep these realities in mind before hiring their services and thus determine fewer wages for them against their services. It is therefore young, unmarried and energetic women obtain higher salaries than the senior and married women. Another important reason of gender income gap is the health conditions of women. Women undergo menstruation cycle every month, during which their energy level is surely low, and it affects their work performance to some extent. Measures to Eradicate Gender Income Gap: Comprehensive Observance of Law: An important measure taken to eradicate the gender discrimination in the workplaces includes the strict observance of the statutes of prevailing law that bar sex discrimination in public and private organisations. Austere and complete implementation of the word of law will surely discourage prejudices determination of wages against women. The breakers of such law must be punished and fined, so that no one could gather courage to practice such activities in future. Appointment of Rational Management: A well-educated, refined and cultured HR manager has command over all the activities being conducted in his organisation. A rational and prudent ownership always hires the services of such an intelligent and wise manager, which can recruit, place and promote the most appropriate persons against various posts, where they could utilise their services in a best possible manner. A civilised management does not bother to look into his staff members with prejudiced eyes or coloured spectacles. Globalisation and Unprejudiced Management: Ours is the age of globalisation, where the individuals belonging to divergent cultural, social, religious, ethnic and racial backgrounds work under one roof and within the same business environment. A experienced and proficient HR manager realises this very fact and trains his staff in such a way that they pay least care to the race, gender, religious faith and ethnicity of their colleagues. In addition, since the prudential management conveys the message of universality to the staff members which is necessary in this era of globalisation and perfect competition. An international organisation has to offer its products and services in all parts of the globe, so those who practice discrimination lag far behind from their competitors and rival companies. REFERENCES: Lee, Audrey J. Lee. (2005) Unconscious Bias Theory in Employment Discrimination Litigation pp 479-532 (http://www.law.harvard.edu/students/orgs/crcl/vol40_2/lee.pdf) Lips, Hilary M. (2008) The Gender Wage Gap: Debunking the Rationalisations Women Media (http://www.womensmedia.com/new/Lips-Hilary-gender-wage-gap.shtml) Longley, Robert (2004) Gender Wage Gap Widening, Census Data Shows: First Decline in Womens Real Earnings Since 1995 (Retrieved from http://usgovinfo.about.com/od/censusandstatistics/a/paygapgrows.htm) Gender & Diversity: The Role of HR (Retrieved from http://www.genderdiversity.cgiar.org/inclusiveworkplace/dignity/harassment/rolehr.htm http://pdf.usaid.gov/pdf_docs/PNACM775.pdf) Sex Discrimination Act 1975 Chapter 65 pp 1-3 (Retrieved from http://www.opsi.gov.uk/acts/acts1975/PDF/ukpga_19750065_en.pdf) Fact Sheet (2009) The Gender Wage Gap: 2008 Institute for Women’s Policy Research (Quoted in http://www.iwpr.org/pdf/C350.pdf September 2009) http://clinton4.nara.gov/WH/EOP/CEA/html/gendergap.html http://www.aercafrica.org/documents/rp132.pdf http://www.statistics.gov.uk/articles/labour_market_trends/lm_social_capital.pdf Read More