Second among equals

Rachna Singh

Of late there has been a lot of talk about corporate diversity and financial inclusion for women in workplaces. All this talk would lead most of us to believe that women are being offered equal opportunities in every field. This is, undoubtedly, a matter of jubilation. But the ground reality is much different. Dipika Pallikal boycotted the National Squash championships for three years to protest against the unequal prize money given to men and women squash players. Aditi Rao Hydari openly aired her grouses about the fee disparity among Bollywood actors and actresses. Most of us may shrug off these voices as a publicity gimmick by celebrities. However, when an ordinary working woman like Kanika Mohan (name changed) talks about feeling let down because her pay package is less than her male counterparts, we would all sit up and take notice. Or we should.

Despite the much touted ‘Equal pay for equal work’, the gender pay gap is very real. Pay structures the world over are skewed against women. The Indian reality is no different. The Monster salary index shows that the gap is as much as 27 per cent. So the median gross hourly salary for men is 27 per cent more than that disbursed to a woman doing the same amount of work for the same amount of time. Sounds unfair? Here’s more. This disparity is more pronounced in the Information Technology sector where it is a whopping 34 per cent. ‘Catalyat’, a non-profit organisation that works for inclusive workplaces, reports that 12 years into their service, women receive Rs 3.8 lakh less salary than men. And such gender-based pay inequalities are not just restricted to developing countries which do not know any better. Even in a progressive country like the U.S, women earn 78 cents as against a dollar earned by men.

The statistics sound extremely disheartening. Several across-the-board surveys reveal a disquieting trend. Employers prefer male employees during hiring as well as for promotions to supervisory positions. The fact is that women tend to take career breaks due to parental and socio-cultural demands, making them unpopular with hiring managers. No wonder, in the not-so-recent past, Air India had regulations which mandated dismissal of an air hostess who married within four years of being hired. It is also an unfortunate fact that men crowd into high paying fields like engineering while women dominate the lower-paying segments like education and hospitality. Even in these low-paying sectors, women are more often than not, excluded from leadership positions.

It requires no rocket science to infer that the problem of gender-based pay gap has its origin in a society that is predominantly patriarchal. The Indian society, as most other societies the world over, has been burdened with kinship rules and gender norms that organise social life and promote subordination of women in the social strata. Such subordination naturally translates into lower pay packages for women doing the same amount of work as men.

And yet, things are steadily improving. With more and more women pursuing higher education, their skills and qualifications are now at par with the men, making them capable of competing for high-paid jobs. Women have also started venturing into fields like mechanical engineering, aerospace, oceanography, oil and gas that were well-paid but taboo. Women are also honing their hitherto-absent negotiating skills. A recent sample study revealed that 54 per cent male job-seekers negotiated for a higher package while only 8 per cent women job-seekers attempted negotiation. But women are quick learners and have now learnt the art of negotiation. Pankajam Sridevi, MD, ANZ, Bengaluru, believes that ‘increasingly, more women are aware of market compensation and are emerging as better negotiators.’

Regulatory action and government support has also made for an even playing field for women. SEBI’s one-woman-in-a-board regulation has promoted corporate diversity. The concept of corporate inclusion means more and more women are being hired by companies. Although, for the moment, they are relegated to HR and finance, there are some women who are breaching the glass ceiling. Chanda Kochhar and Arundhati Bhattacharya are the names that immediately spring to mind. Satyawati Berera, COO, PwC, talks about encouraging trends where ‘compensation benchmarks are applied across role holders irrespective of gender.’ More and more pay parity audits are being conducted in companies. More and more hiring managers are now counselled on gender parity. Things are definitely looking up.

Corporate organisations need to work harder to do away with the unconscious male bias that affects hiring, development and promotion of employees. Experts believe that if there are women in corporate leadership, there would be 15 per cent increase in profitability, better sustenance during economic crisis and an innovative work culture. Perhaps, a lesson or two in the pay parity principle followed in government organisations may have a salutary effect on the corporate pay disparity culture. They would do well to understand that the Equal Remuneration Act is a legal mandate that must be followed in letter and spirit.

The good news is that India, along with Malaysia and Australia, is leading the global charge in boardroom diversity. Cyndi Lauper’s anthem ‘Girls just want equal funds’ reflects the contemporary corporate working woman demand. Let’s hope, the raging controversy on gender pay gap is laid to rest, sooner than later.