Citibank recently made news when it announced a startling pay gap between male and female employees. According to a report, women averaged 27% less income compared to their male peers in 2019. This is actually down from 29% in the previous year. The report also stated that minorities were paid 6% less on average. The company posted this information on its blog, claiming it was an attempt at transparency about pay equity and how it is reviewing its unadjusted raw pay gap.
Raw numbers are not entirely accurate
The adjusted numbers actually put the gender gap much closer at 99%. Nevertheless, the raw data did point out some instances of pay inequity. The banking giant also said that it is proactively looking to place more women in positions of power, from the vice president level up to the managing director level. The company plans to have 40% of these positions filled by women by 2021. Citibank raised the number of female managing directors in its Asia-Pacific market from 21% in 2018 to 31% in 2019, thus making progress in meeting these goals.
Why make the announcement?
The company was required to divulge unadjusted pay gap figures by a British law that went into effect in 2018, prompting the company to do the same in all markets. “Transparency breeds accountability and we took that important first step last year in disclosing our pay equity results,” Citigroup’s global head of human resources, Sara Wechter, said to Reuters in a statement.
Pay gaps are bad business
Companies interested in actively rooting out unfair hiring practices or glass ceilings for employees may need to make changes to the way they conduct business. Working with employees on these matters is essential, but it is also vital to consult with an attorney who handles employment law and other business matters here in the Northeast. Doing so helps companies ensure that those changes are legal and sufficient for providing a balanced workforce from top to bottom.