Korn Ferry Hay Group: The Real Gap: Fixing The Gender Pay Divide

For years we’ve read bold headlines about the gender pay gap, reporting that around the world men are paid an average of 20% more than women. Our global research confirms this gap but also shows that when compared “like for like”, the gender pay gap reduces to 1.6%.

Put simply, a man and a woman doing the same job in the same function and company, get paid almost exactly the same. But one thing remains true: as a demographic group, women get paid less than men. It’s time for a new approach. It’s time to see things differently.

But thanks to Korn Ferry Hay Group’s extensive pay database and the firm’s unique ability to use job evaluations to compare like with like, they can show that the gender pay gap exists—but not for the reasons that many might presume.

It is true that, as a demographic group, women get paid less than men. That’s because they still aren’t getting to the highest-paying jobs, functions, and industries, while men thrive in all three. However, Korn Ferry's data show that the gender pay gap differs from conventional wisdom. When we compare pay for men and women—first by job level; then by job level and company; and finally by job level, company, and function—the “gap” gets smaller and smaller until it all but disappears; in other words, a man and a woman doing the same job, in the same function and company, get paid almost exactly the same.

Still, organizations are under-using 50% of the workforce. They miss out on the opportunity to become more innovative, connect better with customers, and improve their bottom line. It’s time for a new approach. Organizations, managers, and women themselves need to share responsibility for removing the “headwinds” that hold women back. And they need to keep going until the other half gets in the game.

In this report, Korn Ferry Hay Group answer three questions:
1. What’s the reality of the pay gap, and why should we try to close it?
2. What caused this pay disparity, and why does it still exist?
3. How can organizations, line managers, and women level the playing field?

Download the full report here.