How to manage Gender Pay Gap?

How to manage Gender Pay Gap?

The gender pay gap is the difference between men’s and women’s median annual earnings from full-time, year-round work. It is a measurable indicator of inequality between women and men.

The International Labour Organization (ILO) estimates that women on average continue to be paid about 20 per cent less than men across the world. There are large variations between countries, from a high of over 45 per cent to hardly any difference, please see the figures below for different economies.

Most governments are trying to guarantee equality of treatment between men and women in remuneration. Yet, the gender pay gap persists and the World Economic Forum estimates it will take 202 years to close the global gender pay gap, based on the trend observed over the past 12 years.

What can we do to Close the Gap?

The very first step should be:

  • Undertaking a gender pay review to assess whether there is a gender pay gap and to what extent? This review/ assessment should be a continuous effort not something that we do at the beginning of the year while we set some KPIs and at the end of the year while we are reviewing the achievement level on the set measures. Regular pay gap assessment should be followed with the second step which is:
  • Creating awareness and flourishing a culture where leaders/ decision-makers in the organization own and put effort to fix it. If the leaders assume the accountability, promoting a gender-inclusive culture while adopting a holistic approach to equal remuneration for women and men for work of equal value; making equitable salary offers to men and women, it would be an easier mission to achieve.

Another essential step for HR & Leaders in the organization should be:

3-Having a strategic plan in place and acknowledging the fact that it requires time/ effort to manage gender pay disparity, there is no magic wand to close the gap in 1 month/ quarter or a year. The amount of time required would depend where the organization stands at the start point. Keeping eye on core metrics/ insights should be an integral part of your strategic plan, below are some of the sample KPIs that may find value in tracking:

  • Gender Diversity (Male/ Female Ratio)
  • Gender Recruitment (& Candidate) Rate
  • Gender Promotion Rate
  • Gender Turnover Rate (voluntary & involuntary)
  • Salary Growth/ Genders (across various levels)
  • Salary Competitiveness/ Genders (across various levels)
  • Gender Successor Rate
  • Managerial Role Distribution Across Genders
  • Leadership Role Distribution Across Genders
  • Engagement Level/ Gender

Setting KPIs, tracking them with real/ live data can be only effective when it is digitized, especially for Mid & Large Enterprises, you can find some more ideas in Compport Analytics section.

Once pay gaps are seen and understood, then begins the work of deciding how best to address them. But that work will pay off. By investing in pay equity analysis and relevant analytics/ KPIs, companies can begin to close their gender pay gaps, and realize the benefits.

The ILO estimates that reducing the gap in participation rates between men and women by 25 per cent by the year 2025, could raise global GDP by 3.9 per cent, or US$5.8 trillion.

To make that happen, we are responsible, we are all accountable. Pay Equity is the topic which was supposed to be handled as on yesterday so better handle it today.

*For more insights feel free to connect with us anytime,


Why the Demand for a Compensation Software is Increasing?

Why the Demand for a Compensation Software is Increasing?

According to various market researches done by several intelligence companies, the Global Compensation Software Market is expected to grow at a CAGR of 9% during the forecasting period of 2019-2026.  More than 50%+of the market share is originated from the Americas and the market in APAC is expected to register highest CAGR.  And Small/ Medium size enterprises are expected to show higher growth rate in demand than Large enterprise segment. In 2018, on-premises compensation software accounted for the significant share in the global compensation software market however demand for cloud-based compensation software is growing sharply and it is expected to witness the growth of over 12%, during the forecast period, which is higher than the overall market CAGR.

What are the key drivers in the Market? What is Changing?

Highly Attractive Benefits Offered by Compensation Software:

The benefits offered by compensation software, which includes optimized utilization of company revenue, enhancing positive reinforcement, boosting of employee performance, and improving company reputation during talent acquisition are expected to fuel growth in the market. On the other hand, automated compensation management process simplifies administration processes by reducing errors caused by manual work coupled with saving organizations’ money and time while improving efficiency and productivity.

Increasing Competitive Edge:

A smart compensation software helps organizations to take their strategy beyond numbers and budgets. It ensures that the incentives provided to employees are in line with the recent market trends, which helps organizations in maintaining low attrition rates. Moreover, employers can also identify top-performing employees by their work management, thus rewarding such employees for their effort. Also, it improves the workplace environment of the company, which plays a significant role in the performance and productivity of an employee. Thus, more companies are looking to adopt compensation software tools into their organizational activities to attract and keep top performers, build a solid employer brand and ultimately to sharpen their competitive edge.

Technological Advancements and New User-Friendly Software Launches by Market Players:

There is a clear shift from Core HR Suite to end-to-end Compensation Software since organizations do not want to rely on their core HR Suite and compromise their compensation strategy. A typical HR Suite can only manage certain aspects of a typical compensation process; thus, companies still manage some part of their processes offline, basically through traditional spreadsheets. But with the technological advancements and the smart offerings by “boutique' compensation software companies, the rules of the game are changing, more and more companies shifting their compensation processes out of their HCM.  Unlike HCM market, approximately one quarter of the Compensation software market is dominated by major global vendors who offers full HCM suite, (for HCM market it is more than 50%). The concept of ‘integration’ is surely helping this change, most of the compensation software can be easily integrated to ERP/ HRIS and allows organizations to leverage their investments in existing processes and systems.


Nowadays, for any size of enterprise, for any type of compensation process, for any set of expectation, there is a compensation software available in the market. It is “the time” to manage employee compensation with confidence; the right tool can bring data intelligence, workforce agility and administrative efficiency to human resources while providing transparency of all compensation detail for reporting, total compensation statements and letters, and audit/ compliance reporting.

There is a compensation software out there which would help you to optimize the utilization of company revenue, to enhance positive reinforcement, to boost employee performance and engagement. Wishing you all the success and highest return on investment. For any queries/ feedback please feel free to reach out.

Thank you

Co-founder/ Managing Partner Compport