The Real Situation and What Can Be Done About It
by Valerie Ryder
Working women around the world are aware of the chronic issue of the gender pay gap – i.e. the difference in salary between men and women. Scientific research has been carried out recently in Italy in order to shed more light on the actual figures and to analyze the possible causes.
On June 24, SDA Bocconi’s Osservatorio sul Diversity Management, in collaboration with Hay Group, presented the findings of their research on the Italian gender pay gap.
The study analyzed a sample of 97 mainly large and medium-sized companies (one-third of which are Italian-owned) over the period 2005-2008, which included 32,000 individual salary data observations. Women represented 30% of the sample in the figures from 2008. The study took into account not only the traditional indicators of age and industry sector, but also a score based on the complexity of the position measured by the level of know-how, problem-solving skills and individual accountability required.
In Italy women earn, on average, between 23% and 25% less than men (comparison of gross annual base salary and gross annual salary including variable compensation, respectively). However, when salaries are compared for the same level of complexity, responsibilities and seniority, the difference is reduced to 2%.
Taking a closer look at the levels and roles held by gender, women represent 12% of all upper management (dirigenti), 23% of middle management and professionals (quadri), and 37% of clerical positions (impiegati). Women hold 33% of all sales-type roles (which are also the highest paid), 20% of line functions, and 39% of staff positions.
Keeping in mind that women make up 30% of the work force in this study, 70% of them hold impiegate positions, 25% are at the quadri level, and the remaining 5% attain the dirigente level. Bottom line: it’s an issue of vertical and horizontal segregation. Women occupy positions which are paid less. Yes, the ceiling may be made of glass, but the floor can also be quite sticky. The real issue of discrimination does not lie in the compensation policies of individual companies, but rather in social, cultural and other factors.
So, if the real salary difference is only 2% at positions with the same degree of complexity and responsibility (and knowing that the companies participating in the research are particularly sensitive to the issue of salary equality), how can more women reach higher levels? A push and pull strategy would be particularly effective.
From an organizational standpoint, companies need to push, by putting in place policies to support women’s careers, such as flex-policies which – for example – would allow meetings to be held only between 9:30 a.m. and 5:00 p.m. Further, they need to evaluate both performance and potential, with potential being rated not by the traditional 50-ish male boss, but by a separate, more objective source such as the Human Resources function, using assessments of potential and other proven instruments.
Succession plans need to be drawn up, to specifically include more women. Companies must then take the necessary steps to ensure that they are properly prepared for their new functions, through a personalized training, coaching and development plan. Many women lament the lack of role models and mentors – the implementation of formal mentoring programs would respond, at least in part, to this need.
On an individual level, women need to pull, by continuing to take their professional future into their own hands. Women need to go out on a limb with confidence and dare: to blow their own horn; to ask, for example, for training, a raise, a promotion, or more flexibility with their schedules; and to negotiate. Developing their own relational network and identifying mentors within or outside of their place of employment are time-tried, successful strategies.
News flash: PWA Milan, in addition to providing networking opportunities, will be implementing a mentoring program over the next several months. Check our website regularly to learn more about the project; more details will follow soon.
For more information:
SDA Bocconi’s Osservatorio sul Diversity Management
21 June 2009 article in Il Corriere della Sera.it by Rita Querzè: “Stipendi, è parità tra uomini e donne”
Contact the author: vryder@ryderassociates.com – www.ryderassociates.com
