Latinx women face a wider pay gap than women of any other background, at a rate of $0.55 to every dollar a white male makes, according to EqualPayDay.org. The disparity for Native American Women is $0.60 to every dollar, while for Black women and white women, the difference is $0.63 and $0.83, respectively. This difference is even more staggering when it comes to Latinx women with children, who make on average $0.46 to every dollar made by a white male.
While there have been ongoing discussions around inclusion in the workplace and outspoken champions of equity, the pay disparity persists. In fact, it has barely shrunk. In 1989, Latinas were paid just $0.52 for every dollar paid to white men, according to the National Women’s Law Center. Over three decades later, the gap has only decreased by a mere three cents.
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For significant change, employers must take it upon themselves to push pay equity forward. Here are four recommended steps that employers should enact in every workplace:
Increase representation in leadership roles
This pay gap highlights the lack of representation of Latinx women in higher-compensated positions across organizations. Although there are societal and historical issues to consider, leaders need to follow the data trail and act on de-biasing internal practices to close the current gaps in hiring and promotion of Latinx women into these roles.
Companies should continue to invest in strategies that lift the barriers that have kept Latinas — and women in general — from advancing in corporate America. One way that organizations can support Latinas is by providing access to sponsorship opportunities. A 2019 report from Payscale found that sponsors, not mentors, are ”an effective way to combat systemic bias and break through the glass ceiling to positions of power” and to narrow the pay gap. This is called “Sponsorship Premium.” Women who have a sponsor are paid 11.6% more than those who do not. For Latinx women, the impact of the Sponsorship Premium was even greater, where, on average participants make about 18.7% more.
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Not only are the financial benefits of gender diversity in leadership well-documented, but according to a report from The Rockefeller Foundation, women leaders have a positive impact on workplace policies. This includes helping companies attract and retain a more diverse workforce and serving as role models critical to the career advancement of women.
Foster an inclusive culture
Through hiring, learning and development opportunities, access to mentorship, high-visibility assignments and performance reviews, managers are making daily decisions that affect internal equity. It is important to reflect on your full employee lifecycle. Ask the questions, “Who is being promoted? Who are the top performers and why?” Take the time to understand and support the current untapped talent in the organization, with a particular focus on Latinx women.
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Consider the role culture plays in your company dynamics. Assertiveness, ambition and drive are highly valued in the workplace when making employee advancement decisions. A common misperception is that these traits may not be reflective of Latinx women. However, organizations must consider the cultural differences and create environments where all employees are valued and can thrive. For example, many Latin American societies have collectivist cultures which are less likely to encourage self-promotion. In fact, only 31% of Latina women say they are comfortable talking about their success and accomplishment, according to a survey conducted by The Self-Promotion Gap. A study from The Network of Executive Women found that due to this “cultural clash”, “Latinas are often viewed by managers as less "hungry" or personally qualified for advancement.”
To narrow the pay gap, organizations need to challenge harmful stereotypes and advocate for employees as individuals for their strengths and uniqueness while providing a path for growth within the company that allows for equitable movement and career advancement.
Remain transparent about pay practices and hiring salaries
A quick assumption is that the only reason why Latina women are paid less is that they are concentrated in roles that historically pay less on average. However, according to research from Lean In, Latinx women are paid less even when in the same position as their male counterparts.
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Today, companies are implementing initiatives to increase diversity and to create a sense of belonging in the workplace. Therefore, it’s critical to reduce cultures of bias and ensure that compensation decisions are driven by clear factors and not influenced by misconceptions.
Pay transparency improves a company’s culture, and research has shown that it is crucial to close the gap. The level of transparency can look different from one company to another, but there should not be a doubt among employees that compensation decisions are being made fairly and that they should be able to advocate for themselves.
Evaluate benefits
The COVID-19 pandemic has taught everyone a lesson in flexibility in the workplace. One major takeaway is that flexibility works. It has been shown to open many doors such as reduced work hours, increased family and parental leave, and remote work opportunities. Basic benefits such as these grant individuals an opportunity to not only excel at their job but strike a sustainable work-life balance.
The pandemic has had a notably detrimental impact on women, especially working mothers. As of March 2021, nearly 1.5 Million fewer mothers were actively working than the year prior, many of which were forced to leave the workforce to care for school-aged children.
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While not the end all be all, offering flexible working conditions significantly increases a mother’s ability to continue her professional career. It is important that benefits are not only assessed and offered but that they are role modeled by leaders who encourage a norm of flexibility.
For true change, entering the conversation is only the first step. All organizations play a role in pay parity, and leaders must take it upon themselves to implement structures that provide equitable opportunities for all employees.
Given the fact that “the Hispanic market is the largest minority market in the U.S. and continues to expand briskly”, according to the University of Georgia’s Selig Center for Economic Growth, equitable advancement and representation of Latinas in influential roles could position organizations to better serve their consumers, employees and shareholders. It’s a matter of both values and value.
