Page 20 - Appreciating Organization's Biggest Assets

measures have drawn considerable inside an organization is made
interest from policymakers and have public. The story of Lilly Ledbetter
been adopted in Finland, Sweden, demonstrates this. Ledbetter,
Norway, Denmark, Austria, the a supervisor at the American
United Kingdom, Germany, manufacturing firm Goodyear Tire,
Iceland, and the United States. was not aware that the salaries of
Although transparency rules have her male coworkers in comparable
recently been implemented in many roles were higher than hers. She
nations, there is little data linking sued her company for employment
them to the gender wage gap. The discrimination after receiving this
authors of the paper ‘The new age information via an anonymous
of wage transparency,’ Richard letter. This case ultimately reached
Trotter, Susan Rawson Zacur, and the U.S. Supreme Court, and as
Lisa Stickney emphasize that one a result, the Lilly Ledbetter Fair
reason the gender gap still exists Pay Act of 2009 was passed, which
is that it is concealed. Thus, it is lessened the difficulty of bringing a
anticipated that knowledge of the discrimination claim. The Ledbetter
gender wage gap and peer earnings case highlights employees’ initiative.
will influence salary negotiations, Broad salary disclosure may also
thereby assisting in reducing the help close the gender pay gap due to
gap. Institutions advise developing institutional reactions to increased
pay transparency tools for this public awareness of pay inequalities.
reason. Organizations may specifically take

Tomasz Obloj and Todd Zenger institutional action to modify
(2022) focus on two separate salaries to maintain good public
income patterns that have increased relations. For instance, Mas (2017)
over the past few decades: ongoing discovered that in California, the
pay inequality, particularly a gender publication of city manager wages
pay gap, and rising pay inequality. resulted in a decrease in average
Pay transparency has received much salary, which has been viewed as an
support as a solution for both. Per the institutional reaction to the public’s
paper published by Michael Baker, uproar about high compensation
Yosh Halberstam, Kory Kroft, levels.
Alexandre Mas, and Derek Messacar
in 2019, people may privately
demand better compensation from
their employer if information about
gender-based salary differences

20