Published on February 16, 2024
In a recent CNBC article, The racial wage gap starts as early as 16 for Black workers—and results in ‘a lifetime of consequences,’ says expert, we confront the stark reality that the racial wage gap persists, underscoring the need for ongoing efforts towards fair pay. According to the Department of Labor, Black workers across the nation earn 76 cents for every dollar earned by their white counterparts, emphasizing the urgency for sustained initiatives in achieving pay equity.
The study particularly highlights the earnings of full-time workers aged 16 to 24, revealing that Black workers in this group earn $614 per week compared to $747 for their white peers. While a smaller gap than the national average, it still translates to around 82 cents for every dollar earned by white workers, indicating a considerable journey ahead in addressing this issue comprehensively.
Experts point to several factors contributing to the racial wage gap, with a significant emphasis on the limited early career opportunities influenced by family situations. Children born into higher-income households tend to have better access to coveted internships and entry-level positions, creating disparities that persist into adulthood.
Additionally, the overrepresentation of Black individuals in lower-paying fields, such as postal service clerks and transit workers, amplifies the wage gap. These disparities in early career opportunities and job sectors contribute to a complex and enduring challenge, resulting in long-term consequences for affected individuals throughout their professional lives. In response, the Biden-Harris Administration has taken significant actions:
Biden-Harris Administration Actions:
The administration has issued Executive Orders and proposed regulations to close wage gaps and improve pay transparency, specifically for federal workers and employees of federal contractors.
Key Actions:
1. Ending the Use of Salary History: Prohibiting federal agencies from considering an individual’s current or past pay when determining federal employee salaries.
2. Advancing Pay Equity in Federal Contracting: Proposing regulations to prohibit federal contractors from seeking and considering job applicants’ compensation history and requiring disclosure of expected salary ranges in job postings.
3. Affirming Equal Pay Obligations: The Department of Labor’s Office of Federal Contract Compliance Programs is issuing guidance clarifying protections against discrimination in hiring or pay decisions, focusing on individual compensation history.
Leveraging Data Analytics to Close the Gap
Data analytics plays a crucial role in helping to close the racial pay gap. Organizations can proactively utilize data by implementing robust monitoring and tracking systems to identify and address racial disparities in compensation. By continuously monitoring for downtrends, organizations can swiftly intervene to rectify emerging issues and ensure fair pay practices. Being intentional about collecting and analyzing demographic data allows organizations to make informed decisions, fostering a workplace environment that values equity and inclusion.
Furthermore, data analytics can significantly aid organizations in complying with the recent Executive Order, helping them navigate the intricacies of ending the use of salary history and advancing pay equity for federal workers and contractors. This proactive use of data not only aligns with regulatory requirements but also has the potential to diminish the risk of Equal Employment Opportunity Commission (EEOC) claims and mitigate bias and discrimination litigation, ensuring a more equitable and legally sound workplace.
Here are some ways that organizations can proactively use data:
1. Conduct Pay Equity Audits: Regularly analyze pay data to identify and address disparities.
2. Implement Transparent Salary Structures: Clearly define and communicate salary ranges to employees, promoting fairness.
3. Ensure Equal Opportunities: Evaluate hiring, promotion, and compensation practices to ensure equitable opportunities for all employees.
4. Invest in DEI Programs: Develop initiatives that foster diversity and inclusion, addressing systemic barriers to fair pay.
As we navigate the complexities of achieving fair pay, let us remain informed, advocate for change, and actively contribute to building a future where pay equity is a reality for all.
If your organization needs data analytics assistance to ensure fair pay, please visit www.deidirective.com.
CNBC Article Citation:
Malinsky, G. (2024, February 15). “The racial wage gap starts as early as 16 for Black workers—and results in ‘a lifetime of consequences,’ says expert.” CNBC. Retrieved from https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2024/02/15/racial-wage-gap-starts-as-early-as-16-heres-why.html
