On International Women's Day, should employers really be celebrating?

During the month of March, employers are targeting their efforts toward acknowledging and celebrating women in the workplace. Yet it may be too soon for a pat on the back. 

While employers have been more vocal in their commitments to support women at work, the numbers don't lie: the wage gap is still 82 cents earned by women for every dollar made by men, a figure that drops further among minority groups, according to Pew Research Center analysis. 

Additionally, many women are still bouncing back from the impact of the pandemic, which saw nearly two million women disappear from the workforce, mostly to care for children and to take on other caregiving roles. While workforce participation rates have returned to pre-pandemic levels, according to the Bureau of Labor Statistics, return-to-work mandates, layoffs and recession fears could be yet another blow. 

"If business leaders don't do something now, we risk getting stuck in a negative spiral where women who have left the workforce due to the pandemic, increased care and parental responsibilities and layoffs, are unable to re-enter because of a perceived lack of skills," says Janice Burns, chief people officer at education technology platform Degreed. "If gender parity continues to fall, it will create a culture where women may not feel welcome or accepted and then may leave." 

Read more: Want to achieve a 90% retention rate? Support your women employees, this VP says 

According to a survey by Achievers Workforce Institute, only 22% of women feel a sense of belonging in the workplace. While this is an important factor at an individual level, creating support for female employees can have a huge impact on a business's ROI, says Lorna Kapusta, head of women and investing at Fidelity. 

"It's recruitment, retention, and making sure that our employees are feeling fully valued so they can focus on work, as well as what's important to them," Kapusta says. "When you have that equation in place, you're going to see the best output for your company, as well as one of the most important things, which is happy and engaged employees." 

SALARY TRANSPARENCY 
Yet women don't always have the luxury of feeling connected to their work if they're not being paid fairly to begin with. One way to tackle the wage gap and help women economically is to commit to salary transparency, something states including California, New York and Maryland, among others, are now making legally mandatory. 

Read more: Pay transparency laws support equity — but will they force employers to overextend their budgets? 

HiBob, an HR management software platform, conducted their yearly survey gauging women's experiences in the workplace compared to men, and found that just 35% of all employees said their organization is transparent around salary. While almost half (46%) of both genders said they received a raise, only 22% of women were promoted in 2022, compared to 35% of their male colleagues. 

Meanwhile, men and women still disagree on how equitable their workplaces actually are: HiBob found that while 68% of men believe that both genders are paid equally, just 49% of women think the same. HR leaders need to play an active role in bridging these communication gaps, while advocating for equal pay and career opportunities, says Michelle Mason, CHRO of job search site Talent.com. 

"We have come a long way and we have to celebrate that, but I am a realist, and sometimes it is two steps forward, one step back," Mason says. "As an HR leader, you have to meet the moment and put a set of plans together that's going to be the most helpful for your company. It's not just about a slogan on the wall — how are you being inclusive in those daily actions?" 

Read more: Men are in the dark about pay equality 

Whether that's establishing a code of conduct for how people are promoted, offering equal opportunities for training and upskilling or advertising an organization's pay structure, it is critical that employers make strides to address wage parity — the effects trickle down to every area of life, Kapusta says. 

"As many strides are being made, that's just a fundamental difference between women and their male counterparts," Kapusta says. "And that goes into not just what you make and bring home, but your savings, that goes into retirement, and then what you're able to do with your money outside of that." 

BENEFITS AND SUPPORT 
Beyond pay parity, there are other areas of focus that are helping create more supportive and equitable workplaces for women. Due to the pandemic, the mass adoption of remote and hybrid models has leveled the playing field for women who previously struggled to balance work and home responsibilities. 

In fact, a survey by the International Workplace Group, a flexible workspace provider, found that 90% of women believe hybrid work has been "an equalizer" in the workplace, and 67% say the arrangement has had a positive impact on their career growth. 

Read more: 5 things employers should know on caregiving and remote work

That flexibility should extend to benefits, too, Mason says. Based in Switzerland herself, she says she doesn't limit her ideas when it comes to the types of benefits that could be offered to employees. 

"I think there's great promise in looking at more open menus of benefits, where people aren't just locked into what a corporate group thought would be good, or what we were able to negotiate [with vendors]," Mason says. "As an American who's lived abroad for many years, I often am inspired by what we see in many European countries who are leading the way for family friendly and different types of supportive policies and programs. So we continue to look for inspiration anywhere we can find it." 

Employers should also review their benefits for areas where they can engage with women specifically. While caregiving benefits are a common area where women need support, other benefits like increased mental health days and even student loan repayment can have a positive impact on women in particular. 

Making decisions around which benefits to market to different demographics will make them more effective, and ultimately employees will engage and benefit from them directly, Kapusta says. 

"I think one thing that Fidelity has done really well is to look at different cohorts to make sure that they're providing benefits that really resonate with not just the whole," she says. "With caregiving, two-thirds of caregivers are women, so in addition to services and support, we also offered PTO days if caregiver support falls through, or if you needed a mental health day. Student debt, you've got two-thirds of student debt that's sitting in the hands of women, so offer a benefit so it's done and taken care of. Make changes that are going to matter most." 

WHAT COMES NEXT 
As employers shift their strategies to keep women in mind, there is space for optimism. HiBob's survey found that 86% of women feel confident in their ability to do their job well and are striving for promotions and leadership roles in the future. Change is already underway, Kapusta says. 

"Culturally and historically, there was only room for one woman at the table," Kapusta says. "That's changed — there are many seats available and we should be taking our seat." 

Read more: Taking a stand on the gender pay gap will benefit all of your workers

Using goal posts like International Women's Day is a good way to start a dialogue — but true progress will come with continuous conversation and action year round, says Sarah Danzl, VP of communications and client marketing at Degreed. And all voices need to be heard, she points out.  

"As a collective, we can raise each other up to tackle inequality and stand as a united voice," she says. "That's a call to action for everyone in the workforce and in leadership as gender equality impacts far more than women's prospects."