The wage and wealth gap: What companies can do

It is common knowledge that there is a wage gap between men and women in the Netherlands. On average, men earn 13% more for the same work than women. In addition, recent research shows that women build up significantly less pension than men; the difference in pension accrual is on average no less than 40% (Wijzer in Geldzaken, 2024). This leads to a wealth gap with the Netherlands having the largest gap in Europe. These differences are partly due to the fact that women work part-time more often, choose professions with lower salaries (such as healthcare and education), and because in some cases they are still paid less for the same position. But how can you, as a company, address this gap and contribute to a solution?

Equal pay for equal positions

An obvious solution is to offer equal pay for equal positions, regardless of gender, age or origin. As a company, it is crucial to carry out periodic checks to ensure that the wage structure remains fair. Transparency about salaries within the company can also help to expose and correct any inequalities. Open communication about salaries can help build trust and equality within the team.

Supportive measures

A large part of the wealth gap is due to the fact that women are more likely to work part-time and in sectors with lower wages. However, this does not address the underlying problem: women often lack the financial buffer needed for major life events. Companies can respond to this by taking measures that offer flexibility and support. Think of flexible working from home options, offering childcare, and introducing equal maternity leave for men and women. These types of measures ensure that women are not limited in their options and that they can combine their work with other responsibilities without having to compromise financially.

Equip’s role in reducing the wealth gap

An effective solution to help employees with their financial planning is to offer financial advice as an employee benefit. At Equip, we offer financial advice that employers can use to give their employees insight into their financial situation. Together with one of our experts, every employee can get a clear picture of her (or his) assets, current pension accrual, and possible areas for improvement. This not only helps to improve the current situation, but also enables employees to work proactively on their financial future.

Conclusion

Tackling the pay gap and the resulting wealth gap starts with equal pay for equal work, but also requires broader measures that take into account the specific challenges that women often face. By taking an inclusive approach and offering financial advice, companies can play a crucial role in closing this gap and promoting equality in the workplace.