Study for International Women's Day: This is how the salary gap could be closed
The Accenture study for International Women's Day takes into account women graduating from universities in Western industrialized countries such as Switzerland. It shows how the gender pay gap could be closed in less than three decades, and how women could earn as much as men.
The results of the Accenture study show: If a woman earns $100, the global average for a man is $140, or 40% more. In addition, women are less likely to be in paid employment than men - in comparison, only 50% of women are in paid employment, but 76% of men. This phenomenon further reinforces the economic inequality between the sexes:
If this factor is added, a man earns as much as $258, while a woman receives only $100. The Accenture study refers to this as a "hidden" wage gap.
Gap could close in 2044
According to the study "Getting Equal 2017," however, the wage gap in industrialized countries could close in 2044 if the relevant conditions were met. That sounds like a long time, but in fact wage equality between men and women would be achieved 36 years earlier than under current conditions.
The effect would be even greater in the emerging markets, where equal pay could be achieved 100 years earlier than at present - in 2066 instead of 2168.
"We need equality between women and men in the workplace. Equal pay is an economic and competitive imperative and affects everyone. We must take all necessary measures to improve professional opportunities for women and close the gap as quickly as possible," says Nicole Stuber-Berries, responsible for the Women's Initiative in Switzerland and Managing Director Financial Services at Accenture Switzerland.
Equality Catalysts
The study specifically identifies three specific career catalysts for women: Corporations, Governments, and Universities. In addition to this stocktaking, the study identifies three critical factors that put women at a disadvantage on their way to the desired wage equality right from university, including in Switzerland: female students in this country are significantly less likely than their male counterparts to opt for courses of study that per se have a higher earning potential (48% vs. 58%).
They are less likely to have a mentor (72% vs. 87%) and less likely to aspire to a leadership position (86% vs. 97%). In addition, they are less engaged in their studies when it comes to acquiring technological expertise (70% vs. 84%) or taking programming and computer courses (59% vs. 75%).
Referring to a related Accenture survey from 2016, the study identifies three key catalysts that women can use to close the wage gap:
- Digital competence - The degree to which a person uses digital technologies to connect and share with others, to educate him or herself, or to work
- Career Planning - The need for women to set career goals, make thoughtful decisions and proactively advance their careers
- Technological expertise - The opportunity to acquire his digital and technological skills at least as fast as men do
Around 28,000 men and women, including students, in 29 countries were surveyed for the study. The sample included equal numbers of men and women from three generations (Millennials, Gen X and Baby Boomers) and represents a cross-section of all professional career levels and from companies of various sizes.
Create role models
If the three career catalysts take hold and businesses, governments, and academia provide additional support for women's related efforts, the global wage gap could be reduced by 35% by 2030 and women's earnings could increase by $3.9 trillion.
"Equality is fundamental to inclusive employment policies, including pay," says Thomas D. Meyer, Country Managing Director of Accenture Switzerland. "Businesses, governments and educational institutions play an important role in closing the pay gap. All three sectors need to work together to create appropriate opportunities, environments and role models."