Turning over the Partner PoV column to Zev Eigen, founder and chief data scientist of our portfolio company, Syndio.
Equal pay for equal work by people of different genders is top of mind for most companies in 2019, with a December World Economic Forum report noting the gender pay gap is on track to persist for the next twenty decades.
There is absolutely no reason for the pay gap to persist, and some actors have begun taking steps on what they have realized is a solvable problem. For example, many states are enacting laws that require organizations of all sizes to close the gender pay gap. Shareholder activists, third-party organizations, and activist fund managers are pressing companies for transparency on their pay equity to avoid facing a shareholder proposal. Within companies, employee networks are more frequently sharing their own pay information when pressing their employers on pay equity.
But more than the legal requirements or external and internal pressure, gender-based pay equity is the right thing to do. When employees know a company takes pay practices seriously, they are more engaged, happier, more productive, and less likely to leave. Employers that are transparent about their commitment to pay equity earn trust, and a reputation for pay equity is also the number-one way to attract top talent.