The International Labor Organization’s latest India Wage Report has revealed that the gender pay gap is narrowing. The report, which reviewed data between 1993-1994 and 2011-2012, stated that the gender divide reduced from 48% to 34% between this period. While, this is clearly a step in the right direction, the gender pay gap is still considerably high. Furthermore, despite steps being taken to reduce the gender divide in businesses, the impact of feeling less worthy than their male counterparts is halting many women’s careers.
A stop gap
Within the next six years, India is set to become the most populated country in the world. And, by 2061, the nation’s TFR, the average number of children born per woman, will hit 1.8. Of course, women have to take time out of the workplace to birth and raise children. For some, their pregnancy may be planned, while other pregnancies may come as a surprise. In some cases an unplanned pregnancy may require legal assistance and further time off may be required. However, becoming a mother should not be used as an excuse to pay a female worker a lower salary.
Feeling unvalued
Employee happiness should play a fundamental role in every organization. However, one study into workplace happiness revealed that female employees across all levels of seniority rate their career development opportunity at just 5.8 out of 10. The women also stated that they felt a need for increased appreciation, communication and respect in the workplace. In comparison, male workers expressed a desire for higher wages and more career development opportunities. These findings show that female workers feel undervalued and unhappy at work. And, with employers continuing to pay these females less than their male colleagues, businesses are only making these undesirable feelings stronger.
Leaving the workforce
As a result of the gender pay gap and general unhappiness in the workplace, an increasing number of Indian women are turning their backs on the workforce altogether. Currently, just 27% of Indian females work, and this figure continues to decline. Whereas, in Bangladesh the proportion of working women is three times greater than in India. Research has shown that as males start earning more, women typically walk away from their careers only return when well-paid jobs which match their education and skills become available.
The impact
As Indian females are only prepared to return to work when the money is right, it shows that the gender pay gap is having a long-term impact of women’s careers. They don’t want to work for less than they are worth and are prepared to cease working altogether in order to prove their real value. However, the real impact will be felt by the economy. By 2030, the Indian economy is set to be worth $10 trillion and female workers will be required just as much as male ones.
There are positive signs that India’s gender pay gap is looking healthier. However, there are still steps businesses could and should be taking to ensure that their female workers are happy, feel valued and have viable career paths ahead of them.