What is the Wage Gap?
The Wage Gap in Canada refers to the difference in earnings between men and women in the workforce. Here are some important things to know about the wage gap in Canada:
- The wage gap still exists. Despite progress in recent years, there is still a significant pay gap between men and women in Canada. According to the latest data from Statistics Canada (2022), women in Canada earn 87 cents for every dollar men earn.
- The wage gap varies by occupation. The size of the wage gap varies depending on the occupation. Women in male-dominated fields, like engineering and technology, experience a larger wage gap than women in other fields.
- The wage gap varies by age. The pay gap is larger for older workers, particularly those over the age of 55. This suggests that women may face additional barriers to career advancement and earning potential as they age.
- The wage gap is worse for women of colour. Women from marginalized communities, like Indigenous women, women of colour, and women with disabilities, experience an even larger wage gap than white women.
- The wage gap has long-term consequences. The wage gap has long-term consequences for women, including lower lifetime earnings, reduced retirement savings, and increased economic insecurity.
- Steps are being taken to address the wage gap. Governments, employers, and advocacy groups are addressing the pay gap in Canada. For example, some provinces have introduced pay transparency laws. BC has new regulations rolling out in NOVEMBER 2023. Many employers have implemented diversity and inclusion initiatives. More work must be done to close the pay gap and achieve gender equality in the workforce.
How Can Employers Close the Wage Gap:
BLANKSLATE can help employers to take several steps to close the wage gap and promote pay equity in their workplaces. Here are a few ways we help:
- Conduct a pay equity analysis. BLANKSLATE can work with employers to analyze their pay data to identify any disparities in pay based on gender, race, or other factors. This can help to identify areas where adjustments need to be made to achieve pay equity.
- Implement pay transparency. As discussed earlier, pay transparency can help to promote fairness and equity in the workplace. Employers can establish open salary policies, salary bands, and other practices to share information about compensation with employees.
- Set clear criteria for pay. We help you establish your compensation philosophy and pay guidelines. Employers can establish clear criteria for determining pay, like job performance, skills, and experience. This can help ensure that pay is based on objective factors not biases.
- Provide training on unconscious bias. BLANKSLATE offers Employers training for managers and other staff on unconscious bias and how it can affect pay decisions. This can help to raise awareness of potential biases and promote fair treatment.
- Offer flexible work arrangements. Employers can offer flexible work arrangements, like flexible hours or work-from-home options, to help employees balance work and family responsibilities. This can help to reduce the impact of the “motherhood penalty” on women’s pay.
- Advocate for policy changes. Employers can advocate for local, provincial, or federal policy changes to promote pay equity.
Closing the wage gap is an ongoing process that requires sustained effort and commitment from employers. By taking these steps, employers can promote fairness and equity in their workplaces and help to close the wage gap.