Gender equality at work: Why equal pay beats perks

The gender pay gap issue is a complex problem that businesses have grappled with for decades. I don’t doubt that, for many organisations, it’s something they’re committed to tackling, but the reality is that their tactics haven’t bridged the pay gap. For all the corporate benefits and women empowerment programmes that companies have rolled out, there remains a crater between what men and women are paid.

You only have to look at the latest ONS gender pay gap report to see that progress is limited. The gap is closing, but the shift towards pay parity is slow. PwC estimates it will take 29 years to reach total pay equality (Financial Times) – it’s not good enough. 

The limitations of corporate perks

Over the last decade or so people leaders have increasingly leaned on employee benefits to show women that they are valued. But these perks and programmes, such as fertility support or mentorship programmes, have become substitutes for equal pay. They’re so ingrained that many businesses no longer even question the concept. While I appreciate that these benefits are often offered with good intentions, we have become blind to what they actually are: sub-par replacements for equal pay. 

The truth is that they distract from the pay gap problem, sidelining the core issue. And it desperately needs tackling; we must move past this ineffective gender equity strategy. Corporate perks aren’t best practice – they hurt our chances of achieving workplace equality. 

Ultimately they suggest that women are innately ill-suited to the business environment. By plying women with token gestures positioned as ‘empowerment’ initiatives or special benefits the underlying message women receive is that there is something within them that needs to be compensated for or fundamentally altered to be successful in this corporate environment. 

This doesn’t just impact how women view themselves but the way men see women, too. It creates a vicious cycle, perpetuating biases and stereotypes. 

And, if we’re being honest, some businesses hide behind these perks. While initial intentions may have been noble, they can be used as a get-out-of-jail-free card for organisations wanting to avoid confronting the inequality they know is simmering beneath the surface. 

So, you see, these initiatives are harming our chances of achieving gender equality, and they’re not practical from an economic standpoint, either. 

Compensating for inadequate pay with employee benefits ends up costing a fortune – fertility support, coaching programmes, and other similar perks don’t come cheap; over time they end up eating into business budgets, and the return on investment is non-existent. 

For many decision-makers these add-ons might seem like a brilliant talent attraction and retention strategy worth investing in, but trust me, the novelty wears off quickly. Sure, some women might be swayed to apply when they read the list of benefits on offer but I can guarantee that they’d prioritise a job with a higher salary in a heartbeat. At the end of the day no employee benefit can compete with proper, fair pay. 

Why equal pay empowers women

While some corporate perks place women in a weaker position, suggesting that they need special treatment or should change their personas in some way, equal pay empowers them with financial independence. If women are adequately rewarded for what they bring to an organisation they’ll be far more likely to stay and bring long-term benefits to the firm. 

And on top of this they’ll have the ability to seek out fertility support or coaching if that is something they want. Rolling out these initiatives to all women as a blanket offering doesn’t acknowledge their individual needs. Paying them fairly gives them the agency to make decisions on their own terms. 

For many women, seeking out family, career or wellbeing support is a deeply personal choice – many will wish to draw a firm line between their professional and private lives and corporate benefits undermine this wish. 

If businesses choose to prioritise upping salaries and ensuring that promotions come with a fair increase in pay, they’ll make more progress toward closing the gender pay gap. Women will feel valued and respected for what they bring to the firm without having to show up as altered, manicured versions of themselves. 

Moving beyond metrics: The human impact of fair pay

It’s also important to set out how corporations should approach fair pay. We must shift our approach and deliver meaningful compensation for women but we mustn’t be tempted to rely on metrics to do so. Tracking promotion numbers and diversity stats has the same effect as corporate benefits; they reduce women to numbers on a spreadsheet, neglecting the human aspect of female employees. 

Leaders need to confront the reality of the gender pay gap and the real-world effect it has on women. The reality is that many women who are underpaid have been forced into survival mode; they have to think about how they’ll make it from one day to the next and are constantly worried about how they can prove themselves at work so that they’ll finally be respected for what they bring to a team. Getting lost in graphs and percentage points won’t allow HR departments to come face-to-face with this reality. 

Regular pay audits can help evaluate current pay inequalities, so long as an HR team’s primary motivation is improving how women feel at work rather than simply finding a way to ramp up the diversity figures. As soon as this way of thinking creeps in, people leaders must reevaluate their priorities and interrogate their actions more closely. 

Building a culture of inclusion and fairness

A more effective way to close the pay gap is to remove biases from the promotion and review process and instil the right values in leaders by establishing a positive company culture where everyone is appreciated equally. Of course, gender stereotypes are deeply embedded, and achieving equality is a complex issue affected by far more than just work environments. But managers can still make meaningful changes if they closely interrogate their thoughts and behaviours and ensure that they promote a strong, inclusive company culture. 

Fostering this positive workplace culture and bridging the gender pay gap can’t be done overnight and it certainly can’t be achieved with a few token gestures. It requires a top-down approach, with leaders working away at instilling the right culture day in and day out. 

When all is said and done, pay remains an incredibly important factor; if we tackle the issue head-on and pay women fairly for their work, we could catalyse progress. We have a long way to go, but if we move away from perks and look instead to meaningful, adequate salaries, we could take a colossal step towards closing the gap. Let’s not wait another 29 years – let’s fast-track gender parity now. 

Dr Nahla Khaddage Bou-Diab, pictured, is a culture and leadership expert, chairman and general manager of Oneness Mgmt and CEO of AM Bank. She has published several books, including Untamable and A Leadership Shift, published this year