For the first time in over two decades, the gender wage gap in the United States is widening. According to a 2023 Census Bureau report, men working full-time earned a median salary of $66,790—a 3% increase from the previous year. In contrast, women’s wages only grew by 1.5%, reaching a median of $55,240.

As a result, women in 2023 earned just 83% of what men earned, a drop from 84% in 2022. This marks the first significant decline in pay equity since 2003. The wage gap is even more pronounced for women of color. Black women earned just 64 cents for every dollar earned by white, non-Hispanic men, while Latina women earned a mere 51 cents.

Why Pay Transparency Alone Isn’t Solving the Problem

Despite the growing implementation of pay transparency laws designed to narrow wage gaps, recent data reveals that these measures are not yet delivering the intended outcomes. A closer look shows several reasons why the gender wage gap persists, including the overrepresentation of women in low-wage sectors and the challenges they face in salary negotiations.

Additionally, the disparity doesn’t vanish at higher levels of employment. Even in senior executive positions, men continue to earn more than women. This persistent gap highlights that while pay transparency is a step in the right direction, it alone is not sufficient to eliminate gender-based wage inequality.

What Employers and HR Can Do to Address the Gender Wage Gap

Although pay transparency has prompted organizations to reexamine their compensation practices, much work remains to be done. According to a survey by the Society for Human Resource Management, only 36% of managers have received training on the importance of pay equity. Without proper training and awareness, the wage gap continues to affect workplace fairness and employee morale.

HR professionals play a pivotal role in combating this issue. By conducting thorough audits of salary data, including gender-based analysis, HR teams can identify and address inequities. Laura Kray, a psychologist at Berkeley’s Haas School of Business, suggests that HR should track salary requests and justifications to ensure that men and women are treated equally in their compensation negotiations. This level of oversight can help prevent unconscious biases from creeping into pay decisions.

Moving Forward: Beyond Pay Transparency

The widening gender wage gap is a clear indication that more comprehensive action is needed beyond pay transparency laws. Employers must actively commit to fostering an equitable workplace by promoting fair compensation practices and eliminating biases in pay structures.

HR professionals should continue to play an active role in ensuring that pay equity is not just a policy, but a practice. Through careful analysis, training, and fair treatment in salary negotiations, companies can begin to close the gender wage gap and create a more inclusive and equitable work environment.