Equal Pay is Smart Business

Every day I’m surrounded by bright, engaging men and women who work hard, help clients, and generate profit for our firm, Kaufman Rossin.  These valued firm members all contribute to the success of our organization, and to the award-winning people first culture we have nurtured in our workplace for more than 50 years.

It would be inconsistent with our firm philosophy to have different pay rates for the men and women who make our firm a joyful and successful place to work.  Equal pay is embedded in our value system, where integrity and fairness take top priority.

Does your company pay women and men equally for equal work?

I could tell you that your company should follow our lead because equal pay has been the law since 1963, and it is the right thing to do.  But exceptions are permitted, and believe it or not, some companies continue to pay women less. Some companies see it as a cost they can’t or won’t bear, and continue to pay women less.  I could quote statistics like the recent McKinsey report showing that progress for women in the workplace has stalled, share data that tells us that women earn about 80% of what men do for the same work, and point to census data which shows that American women lose out on $500 billion per year because of the gender pay gap.

But if stats like these would convince you, you’re already there.  Instead, I’ll tell you three reasons why equal pay is just smart business.

1. Paying women equally gives you access to tremendous buying power.

“If I was shopping for vacations and I learned that one premium cruise company is committed to equal pay,” says my firm partner Janet Kyle Altman, “they’d move way up on my list of options.” Women in the U.S. economy control $7 trillion in buying power (more than the economies of China and India combined).  And they’re making big ticket decisions.  They make 80% of the travel decisions.  They influence 70% of car purchases, 80% of health care purchases, and 89% of financial decisions.

If you’re the leader of a cruise line, investment firm, healthcare provider or car dealership, I can’t think of a better way to get your product to the top of a decision maker’s list than to announce and promote your commitment to paying women equally.

2. Paying women equally creates loyalty among customers.

Starbucks recently announced that they’ve closed the pay gap in their US stores, achieving 100 percent equal pay across race and gender.    It’s the right thing to do – and it’s also great for their brand.  Branding – what people think and feel about your product based on what you tell them or show them – is very influential in this kind of frequent, habitual purchase.  Unlike big ticket purchase decisions, which are made slowly and thoughtfully, many people visit “their” coffee shop frequently, even daily.  Consumers want brands to weigh in on important social issues, and taking a public position on equal pay for equal work can make a difference in acquiring and retaining loyal shoppers.

3. Paying women equally helps companies attract and keep the best employees.

In firms like Kaufman Rossin and companies across America, transparency has increased.  Part of this is by design, as we recognize that sharing information creates shared commitment to success.  But part of it is generational – millennials share their salaries with family, friends and co-workers at a much higher rate than my baby boomer generation.  Information about equal pay is shared by friends, in the media, and on sites like Glass Door. Talented, informed women say they are likely to leave employers if they learn men are making more for the same jobs.

April 2^nd, 2019 is Equal Pay Day – the day that recognizes how far into the year women have to work to earn what men earned in 2018.   I encourage you to join the movement for true equal pay.  If you’re a consumer, use your buying power to take a stand – and spread the word every time you do so.   If you’re an influencer, advocate for change in your company and your community.  And if you’re a decision maker, use the power in your hands to create a policy that’s not just fair… it’s good business.