Organizations should avoid gender-based wage discrimination as there are more advantages than disadvantages. Diminishing gender-based wage discrimination will benefit organizations by enhancing the reputation of the company, as well as improving the overall work performance of the employees. Both of the factors contribute greatly to a company's growth and profitability.
Reputation of the Company
An organization will most likely to be successful when they have highly talented and skilled individuals working for them. According to MIT Sloan Management Review, some factors that attract talented potential employees are career opportunity, corporate culture, compensation and etc. Although not many organizations can fulfill every employee's demands, the study has found that 96% of MBA students from 12 top business schools in the U.S., Europe and Asia, consider reputation as an important factor in their choice of potential employer. The overall image of the company has to be optimistic in order to make people believe that they will have a future working for this company.
As women are receiving more education and gaining more experiences and skills, they are a part of the highly talented group of people any company is looking to hire. If a company cannot conduct internal ethical practices, how can these workers believe that this company can provide them with a decent working environment? Not only will current employees lose loyalty for their current companies, potential employees will also lose interest working with the companies. Companies will find it hard to attract and retain highly talented employees if there is no internal and external pay equity (textbook).
Due to lack of internal and external pay equity, the consequence of high turnover rate may negatively influence an organization's durability. Before an employee is officially working for the company, he and she will have to be trained. The cost of training...