Pay equity is a hot topic again. Mercer’s recent “When Women Thrive” research has shown a link between pay equity and greater gender diversity. Moreover, regulators are showing renewed interest in the topic. Firms that do not choose to address the issue as part of their gender diversity strategy may find they are forced to as a matter of law.
The risk is substantial in financial services. According to a recent study, the gender pay gap for women in the United States is 7.2 percent in the insurance industry and 6.4 percent in the finance industry, after accounting for factors such as age, education, experience, location, occupation, job title, and company. These gaps are among the highest for the industries examined in the study.