Introduction
Countries and global organizations have implemented various strategies to ensure gender equality. Despite these efforts, women still earn less than their male counterparts. Reports from all industrialized countries have shown that there is a strong relationship between gender gaps and the occupations and establishments where women and men work.
Females are assigned to less demanding positions that pay less than those assigned to males. Various industries have been grappling with this issue for many years. It affects the image of enterprises and their overall success. Therefore, this paper explores the barriers and potential solutions to addressing the gender pay gap both internationally and in Ireland.
Disparities in Pay
The earnings gap has become a serious and persistent issue worldwide. It refers to the earnings disparity between men and women in the workplace (Rotman & Mandel, 2023). This gap has continued to pose a significant challenge in achieving fair and equitable compensation practices despite advancements in gender equality issues.
To understand the extent of this problem, the 17th edition of the Global Gender Gap Index was conducted across 146 nations in recent years. The research findings suggested that the pay disparity stood at 68.4% (World Economic Forum, 2023). The report added that “considering the constant sample of 145 countries covered in both the 2022 and 2023 editions, the overall score changed from 68.1% to 68.4%” (World Economic Forum, 2023, para. 3).
This current rate signifies that it will take about 131 years for countries to reach full parity. Different nations and regions have shown variation worldwide. They highly depend on socio-economic development and social norms.
A similar trend of men earning more than women can be witnessed in Ireland. One recent report indicates that the country’s gender pay gap in 2022 was 9.6% (Central Statistics Office, 2023). The average male received 9.6% more salary than their female counterparts.
There is significant variation in the earnings between women and men, even when controlling for factors such as firm size and full-time/part-time status. For instance, the highest gaps are available in the insurance, financial, and real estate industries. They record “24.7%, average hourly earnings of €41.93 for males and €31.59 for females” (Central Statistics Office, 2023, p. 3).
However, the lowest in the nation is in the education sector, which is at 2.7%, where the difference between the two is €0.99 per hour (Central Statistics Office, 2023). These findings show a significant loss of earnings for women in Ireland. They have far-reaching implications for their financial security and career advancement.
Barriers and Solutions to the Gender Pay Gap
Hiring and Promotion Discrimination
Closing the earnings gap between men and women remains a significant challenge despite widespread recognition. One barrier associated with this growing problem is discrimination in hiring and promotion. According to Santero-Sánchez and Núñez (2022), women are more likely to face workplace biases. This can limit their access to job opportunities and career advancement.
Additionally, they are also less likely to be considered for promotion than their male counterparts. This trend persists even though these two individuals have equal qualifications and experience. Kronberg (2020) notes that “men receive greater rewards for annual performance scores than women, indicating a gender bias in performance-rewards” (p. 4). Therefore, these discriminations against women can manifest through gender-based biases in recruitment, stereotyping the abilities and leadership potential of women, and limiting their access to networking and mentorship opportunities.
The prevalence of unconscious bias has significantly contributed to hiring discrimination. These habits are automatic, implicit attitudes or stereotypes that influence decision-making. They can push recruiters and hiring managers to favor male candidates over equally qualified female candidates (Kronberg, 2020). This trend can be specifically observed in male-dominated industries, where the heads of recruitment teams are always men.
Additionally, gender discrimination can occur at various stages of the hiring process, from job advertisements and resume screening to interview selection and salary negotiation. Hing et al. (2023) note that these issues hinder this population’s ability to apply for and obtain employment. They have to do more than the men to be hired and paid better salaries.
Discrimination in promotion decisions also impedes the career advancement of females and perpetuates the gender pay gap. According to Fitong Ketchiwou and Dzansi (2023), this disparity sets women off on an unequal footing and hampers their ability to progress financially. They often face hurdles in negotiating salaries and promotions. They are usually overlooked in these instances compared to their male counterparts. This happens even if they demonstrate abilities equal to or superior to theirs. The bias may stem from stereotypes about the abilities of women and the perception of gender roles.
Occupation Segregation
Women are significantly underrepresented in the workplace in various industries. This happens even though efforts have been made to increase their access to employment. Hing et al. (2023) note that many women have chosen jobs in lower-paying sectors, such as education and administrative roles.
The earnings gap between women and men in this sector is significantly lower than in male-dominated sectors such as engineering, finance, and technology. A report from Ireland highlights that “the lowest GPG was in the education sector at 2.7% where males earned €36.64, and females earned €35.65 on average per hour” (Central Statistics Office, 2023, para. 3). This trend in the labor market reinforces gender stereotypes and limits the earning potential of women.
Societal expectations and norms regarding gender roles and responsibilities have been associated with increased incidents of occupational segregation. Chatzi and Murphy (2022) note that “the underrepresentation of women in the science-related areas can be partially explained by considering existing gender stereotypes” (p. 3). They have created an image of women who are not interested in science and perform poorly in it.
This affects how society perceives them and how they view themselves in the community. These societal pressures may also steer them toward traditionally female-dominated sectors. They may end up choosing careers in fields such as healthcare and education (Kronberg, 2020). These individuals are then limited and lack opportunities to advance in their careers and earn much more.
Structural barriers within certain industries and occupations also significantly contribute to gender disparities in pay and advancement opportunities. Recent studies have highlighted that women have significantly increased their presence in male-dominated fields in the US and worldwide. Connley (2020) notes that “with women outnumbering men at all levels of post-secondary education, many male-dominated industries are now starting to see an increase of women entering the field” (para. 7). For instance, they make up 13.8% of mining and logging jobs in the US (Connley, 2020).
However, there are still cultures and barriers in these industries that are less inclusive and accommodating to women. This has been associated with higher rates of turnover and attrition among female workers. Unfortunately, those in female-dominated sectors may face barriers to accessing training and professional development opportunities. This trend further limits their career progression and earning potential.
Lack of Workplace Flexibility and Support
Women are always burdened with the responsibility of caring for various caregiving needs. This population may find it challenging to balance their roles at work without much flexibility and support, both at work and at home. They, therefore, have to reduce their hours or take extended career breaks (Kronberg, 2020). These inflexible work arrangements significantly influence gender disparities in pay and career advancements. Individuals who take time off or reduce their hours to care for family members may experience significant career setbacks. They can miss out on opportunities for promotion and lower earning potential.
Performance Evaluation and Compensation Decisions
Glossing over the gender pay gap across organizations has been hindered by increased gender bias in performance evaluations and compensation decisions. A study by Neschen and Hugelschafer (2021) indicates that quotas for women on corporate boards were imposed to close the gap in economic participation between women and men. It also aimed to help them get promoted within organizations, regardless of the industry.
However, the research findings highlight that women are evaluated in the firm lower than men. Additionally, “this gender bias was limited to sequential (rating) evaluations and was not evident in joint (ranking) evaluations” (Neschen & Hugelschafer, 2021, p. 3). Men are more favored in performance reviews, salary negotiations, and promotion decisions. This barrier stems from stereotypes about women’s confidence, competence, and leadership abilities.
Potential Solutions
Legislation and Policy Initiatives
The gender pay gap has become a significant issue in the current business environment. Even though it would be challenging to close the gap entirely, legislative and policy initiatives to promote gender equality in the workplace can play a significant role in improving the situation. Van den Broeck et al. (2023) note that many countries worldwide have implemented laws and regulations to narrow this widening gap. They have also been intended to ensure fair and equitable compensation practices within enterprises.
The Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2009 of the US have been passed to combat wage discrimination based on gender (Khattar & Estep, 2023). The UK government also introduced mandatory gender gap reporting in 2018 for this purpose. The new requirement compelled employers with more than 250 workers to publish data on their gender pay gaps and take necessary steps to close them (GOV.UK, 2024). It holds employers accountable for gender-based wage disparities and promotes transparency.
Ireland also has the Gender Pay Act 2021 to respond to these barriers and ensure equality. The law requires employers in the country to publish information on the remuneration of workers by gender. They are supposed to highlight any differences and reasoning behind their choices and measures taken to improve things. Firms with more than 250 employees must report their gender pay gap. The December 2022 publications indicated that the country has a mean gender pay gap of 12.6% (Jobling, 2023). It is a new rule that helps the government continue to remind the public of the increased prevalence of gender pay inequality.
Promoting Gender Equality in Education and Training
Countries can also narrow the gender pay gap in organizations through education and training. These efforts can help address occupational segregation and skills mismatches. For instance, they can encourage girls to pursue STEM subjects and empower them to consider non-traditional career paths, such as engineering and finance (Barron & Kattan, 2022). Additionally, relevant stakeholders can implement initiatives such as mentorship programs, career guidance and counseling, and vocational training. These can help equip women with the skills and qualifications to access higher-paying, male-dominated industries.
Many countries have been at the forefront of implementing programs to promote gender equality in education and training. For instance, tackling gender inequality in higher education has been a public priority in Ireland since 2015. The Higher Education Authority (HEA) initiated this by requiring “Irish higher education institutions to commit to the principles of gender equality expressed in the Athena SWAN Charter and apply for Athena SWAN accreditation” (Galligan, 2023, p. 3). Its 2022 recommendations for further advancements targeted organizational culture and learning with research (Galligan, 2023). It increased access to various opportunities for female students. They can now easily pursue careers of their choice and guaranteed employment.
Flexible Work Arrangements and Family-Friendly Practices
The increased workload in many firms has made it challenging for women to balance work and caregiving. They are forced to reduce their working hours and miss out on opportunities for increased pay or promotion. To address this barrier, countries can implement policies to introduce better work arrangements and family-friendly practices. These can help support working parents and reduce the difficulty of workforce participation (Rotman & Mandel, 2023).
They can offer policies such as telecommuting options, flexible hours, and on-site childcare facilities. They can also consider offering extended parental leave to enable them to effectively attend to their jobs and responsibilities. This flexibility to manage work and personal lives promotes gender equality in the workplace and supports the advancement of women’s careers.
Firms in different industries have made significant efforts to implement flexible work arrangements and family-friendly policies to support working parents. Google, Nike, and Dell are among the top companies that have generous parental leave policies, flexible work options, and on-site childcare facilities (Buchholz, 2023). Nike offers perks, such as insurance plans, fitness programs, and days off, to help workers rest and recover.
The European Union has implemented a directive for work-life balance that promises changes in Ireland. This law will ensure workers have greater freedom to work and time to attend to family matters (Dermody, 2023). They will have to extend maternity leave and parental leave to give more time for adjustments.
Conclusion
The gender pay gap has remained a persistent challenge in workplaces worldwide. Discrimination in hiring and promotion, and occupational segregation have increased the unequal treatment of women in workplaces. Lack of workplace flexibility and support also hinders efforts to address this issue.
Countries and organizations can utilize legislative and policy initiatives to help hold employers accountable for wage disparities. They can also promote gender equality in education and training programs. This can help them diversify the workforce and economically empower women. They can implement flexible work schedules and family-oriented policies to support working parents and reduce hindrances to workforce participation. All these can foster a culture of equity and fairness and promote opportunities for all workers to thrive and succeed.
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