Minding the Gender Pay Gap

To guarantee that women have a say in corporate decision-making, they must first have a seat at the table. In today’s business world, gender diversity is a key element for a successful strategy given that solid evidence points toward a positive impact in profits, stock prices(1) and creative thinking.

Increased awareness about the benefits of promoting diversity and incentivizing female leadership has been an important first step, but there is still a long road ahead. In Mexico, 43% of the workforce of the companies listed on the stock exchange are women, yet they only hold 13% of the leadership positions.(2) This is a pressing issue that must be addressed, but it is only one of many challenges that women face in the workplace. 

At the most basic level, companies need policies to level the playing field, particularly in male-dominated industries, such as transportation. To do so means looking at a variety of issues, from equitable pay structures to policies that create pipelines that will ensure that women arrive at positions of leadership. 

A main concern that has not been fully addressed is ending discrimination against working mothers. Stereotyping in the workplace has led to a concept known as the “maternal wall,” which refers to different types of discrimination and biases that mothers and pregnant employees experience in the workplace or when they are trying to find a job.

In addition, an increasing percentage of the wage gap between men and women is attributable to motherhood. Research has found that by the time a woman's first child is 12 years old, her hourly pay rate is on average 33% behind her male counterparts.(3)

Companies that implement development and training opportunities for women can help them identify career goals, acquire the necessary skills, and develop their leadership abilities. Empowering working mothers has a positive impact on their productivity and allows companies to retain their talent.

The COVID-19 pandemic allowed us to discover the benefits of a flexible work policy that helps workers manage their domestic and professional responsibilities. Today, that flexibility significantly improves work-life balance for women and men. 

At Element, we seek to foster inclusivity at every stage of talent attraction and retention. We bring everyone on board in these efforts, since it has been proven that gender equality initiatives are three times more successful when male colleagues are actively involved.(4) For example, women’s advancement in the workforce is highly linked to men who also make use of flexible hours and location policies to take on more domestic and care responsibilities. 

Societal disparities are complex and can be observed in the workplace. Salary is a reflection of the value that companies assign to each job. Data on gender pay gaps globally demonstrate that we still have a lot to do to ensure that people are paid equally regardless of gender. At Element, an important pillar of our diversity and inclusion strategy is to avoid these discriminatory practices. In this sense, our compensation philosophy and principles are rooted in a gender-blind pay-for-performance approach. 

Our policy of “equal pay for equal work” is a serious commitment to ensure fair and equitable pay from the moment we hire someone to annual raises and promotions. Our board and senior leaders oversee the salary review process to ensure that we are establishing gender-blind pay practices. 

Our methodology ensures equal pay for equal work across the organization and also guarantees a competitive salary for each position, along with a healthy "relative justice between salaries." This means that to determine pay levels, we take into account variables such as the attributes of the role, the job level, as well as the employee’s level of experience, performance and seniority.

At Element Mexico we brought in an external consulting firm to conduct a study, looking for salary gaps between the various levels of our organization and focused on gender specifically. The results disclosed that at Element Fleet Mexico there is no salary gap between men and women – positive news that we intend to build on. 

Compensation studies are an ideal tool to review and diagnose pay gaps and address salary disparities. We are constantly ensuring that we have the best benefits not only in compensation but also with respect to what is called “emotional salary.” This concept refers to the nonfinancial gains that both motivate and change perception of work, and that lead to the personal and professional development of employees; for example, health and wellness benefits that serve employees and their families. This approach, combined with the focus on striving for a diverse workforce, will continue to pave the way for driving the advancement and representation of women at every level of the organization.

Element is committed to closing the gender gap because it is both the socially responsible thing to do and because it is simply good business. We will continue to review and ensure equal pay to reward employees and foster an inclusive environment so that all our colleagues can reach their full potential.