1 mins readGender Pay Gap is the measured difference between average earnings of men and women in a workforce, expressed as a percentage. It shows disparities in pay across an organization.
What is Gender Pay Gap
The gender pay gap compares the average or median pay for all men and all women. It is a workforce level measure and is different from equal pay, which concerns pay for the same role. Employers use it to detect systemic inequalities and inform policy.
How does it work
Data on hours and earnings are collected, then mean or median pay for each gender is calculated. The gap is expressed as a percentage difference, typically versus male pay. Factors include role mix, seniority, part time work, and recruitment patterns.
Practical usage in HR
HR teams use gender pay gap analysis for compliance, pay audits, salary planning, diversity initiatives, and reporting to stakeholders.
Gender pay analysis informs corrective action such as pay adjustments, promotion pathways, and targeted hiring.
- Annual pay gap report for governance and transparency
- Compensation audit to remove bias
- Recruitment and succession planning to correct imbalances
Related HR concepts
Closely related terms include equal pay, pay equity, pay transparency, diversity and inclusion, and compensation benchmarking.