A new presidential memo has made the rounds in the Office of Personnel Management (OPM) at the White House, in which President Barack Obama has called for a new government strategy to close any gender pay gap in the federal workforce.
The presidential memo is only the beginning of the federal overhaul: Obama required a full analysis, due in six months, on how potential changes to the compensation system could help eliminate a gender pay gap. The changes will also include greater transparency in starting salaries.
“While salary ranges in the Federal workforce are generally determined by law, the fixing of individual salaries and other types of compensation can be affected by the exercise of administrative discretion. Such discretion must be exercised in a transparent manner, using fair criteria and adhering to merit system principles, which dictate that equal pay should be provided for work of equal value,” remonstrates the White House memo. In addition to the final report six months out, agencies will also be required to show the OPM information on their individual salary policies and any best practices the agency has used to help increase or advocate gender equality.
While the memo will eventually update federal policies to prevent gender inequality in compensation, particularly for low-level, starting salary employees, it could also have far-reaching applications for the private sector, where many firms are looking for inspiration when it comes to gender equality policies and best practices. Reports are subject to frequent contention, but studies tend to show a clear gap between male professionals in the workforce and female employees in the same positions. According to a National Women’s Law Center study released in April, on average full-time women in the workforce earn 77 cents for every dollar that men earn, an all-encompassing average which shows that women lose around $11,084 annually to the persisting gender gap.
The White House move is associated with a broader movement by the administration to increase the role of women in the workforce. On April 23, for example, the White House announced its Girl emPower app, the winner of an equality-centered app contest for the iPad. This free app includes contact information and biographies for all the women in Congress, videos of female leaders speaking about a wide variety of career paths and general information on government management. The United States is also working with the Equal Futures Partnership, a multilateral effort throughout the world to support women in leadership roles and fair workplace positions.
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