Gender Pay Gap Can be Solved by These Two Things

Promoting transparency and eliminating negotiation are the best ways to eliminate the ever growing gender gap pay.

According to the Economic Policy Institute (EPI), women in the U.S. are paid only 82.9 cents for every dollar men earn. This difference is even bigger among minorities and those in the high end of the income scale. Meanwhile, in a report by The Guardian, the World Economic Forum reported that, based on the present indications, it will take about 118 years before this pay gap is closed.

Forbes reported that there are two solutions for this problem; first is transparency, second is to remove negotiation. By implementing pay transparency, women will be more aware with the difference between theirs and their male counterpart's pay. When it comes to negotiations, studies show that women are not very good at it which means, men can easily negotiate for a bigger pay, while women easily accept the first offer they get.

There are tech companies that have implemented the transparency strategy to minimize gender gap pay. New York-based analytics firm, SumAll gives its employees an online document that shows the salaries and pay history of all their co-workers. Social sharing startup company, Buffer has also implemented salary transparency. For other companies to follow suit, legislation is required for bigger organizations to join.

In a report by CKNW, Berkeley-Haas School of Business professor Laura J. Kray in her study published in the Washington Post said, "Training them to be tough negotiators won't overcome the cultural rules rigged against them in the workplace. And it's galling to think that women might need to employ a "Mad Men"-era strategy of flirtation to get a fair shake. Given that salary negotiations ignite the gender pay gap at the starting gate, a gap fueled by small gender biases over time, negotiation-free workplaces are women's best option for getting the salaries they deserve."

Yes, these two suggestions may not completely eradicate pay gap problems, but it will definitely be a good precedence for organizations who want to lead the way in reducing the gap.