President Obama declared today, April 8, “Equal Pay Day” (read his proclamation here). It’s the symbolic day when women’s pay catches up to men’s earnings from the previous year, after taking into consideration experience, time worked, education, and other factors. That’s because, on average, women make 77 cents to every dollar a man makes for the same job.
Research shows that the pay disparity has wide-ranging impacts on families, on businesses, and on the nation’s economy as a whole. But the real question is: “What does this mean for your bottom line?”
According to Catalyst, a research organization whose board consists of dozens of leading CEO’s including Business Forward members KPMG, McDonald’s, and Pfyzer, Fortune 500 companies with women on their board of directors excel better than those without. Companies with more female board members:
- Have a greater return on equity, outperforming those with fewer women on boards by 53%;
- Outperform those with fewer women on boards by 42% in sales;
- Have a greater return on invested capital, outperforming those with fewer women on boards by 66%.
Many leading businesses are taking note and taking action.
For example, Business Forward member KPMG has been working since 2003 through its Women’s Advisory Board to create a more compelling work environment and enhance career opportunities for women throughout all levels of the company. Their efforts earned them a spot as one of the top 10 companies for women executives.
And at AT&T, also a Business Forward member and top 50-company for women executives, more than 900,000 women are helping lead a transformation in the way we connect with the world and helping pave the way for women in STEM.
Has your business taken action to retain women employees or to proactively address pay equity issues? If so, let us know by leaving us a comment on Facebook.