Question

why does the gender pay gap exist in banking? (500 words)

Answer 1

Banking is a major sector in the economy of any country. The pay of the employees in the banking sector is expected to be one of the best in the market. But the reality is that there exists a wide pay gap between the men and the women working in banks. The pay gap is mainly due to the fact that there is very less representation of women in the top level management of the banks. The top level management decides the pay for the employees and if that is dominated by more men than women then the policies will not be gender neutral. This also happens due to the breaks that women have to take from their careers during pregnancy and child birth. They have to restart their career after the break. This causes the fall in the pay and that continues till the time the women retiresfrom her job. A good way of solving this problem is by making the working policies in banks more flexible for women. The participation of women in top management is also essential. The management or noard of directors of the company should design policies and ensure that the glass ceiling does not exist. It is very discouraging for a female employee to work at a lower pay when compared to their male counterparts.