There are any number of women’s rights issues that many employers may feel have little to nothing to do with their business. However, the issue of equal pay for women is one that’s very much related to business and should be something all employers take time to focus on. Here are three reasons why equal pay should be a priority in your business.
Higher-earning women create a better society
When Muhammad Yunus founded the Grameen Bank, his primary focus was on creating microloans specifically for women. Why? Because it turns out women have a better track record of repayment, which makes them a better investment. They also made better use of working capital than men. Yunus found that when they made loans to men, they tended to spend the money to improve their own status or condition, whereas women spent it improving their families and communities.
More loyal employees
While both men and women want to advance their careers, women are more likely to put the needs of their families first. While this may seem like a bad thing for businesses, the truth is, women are less likely to “upset the apple cart” if they have a good thing going. In other words, women are already juggling enough so if they have a good job and can support their family, they are less likely to uproot them to go in search of a better opportunity. While this may or may not be the root cause, studies have shown the attrition rate at all levels is far lower for women than for men. If you want loyal employees, hire women and pay them well.
Diversity of thought and opinion is critical for business
Again and again, diversity of more than just gender and skin color proves to be critical for business, yet businesses continue to fight it tooth and nail. Rather than seeking to embrace true diversity, they seek instead to simply create the appearance of diversity. They do this at times by hiring outliers, such as people of color that come from wealthy and elite families or who have grown up in “white” society or by hiring “token females” or “token people of color.” The truth is, without true diversity, businesses are simply shooting themselves in the foot.