The Problem Of Wage Inequality In Applied Consultants & Engineers Company

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This report will assist Access Mortgage Company in implementing programs to prevent wage inequality. It has come to the attention of the Corporate Governance Committee that many employees feel that they are victims of gender-based wage inequality. This report defines wage inequality, states its extent in the United States, explains its consequences and discusses recommendations to solve it. The average woman only makes 79 cents out of every dollar that the average man makes. We do want this to be so within this firm. To ensure this, women must be able to have the confidence that they are deserving of equality. They must not be ashamed to demand their worth or invest in each other. These topics are discussed throughout this report in hopes that each and every member of this staff will work acknowledge this issue and work toward its solution.


I received a letter from Senior Executive Officer Bethel, requesting that a recommendation report is created to inform all our staff that their safety and comfort at Applied Consultants & Engineering Ltd are of utmost importance to us. As of late, management officers have been receiving complaints from multiple members of our staff, claiming that they have witnessed or experienced wage inequality at this firm. Management does not want this perception to influence employee morale or productivity. To rectify the situation, a report has been prepared in regards to the reality of income inequality and the gender wage gap. It discusses its definition, causes, consequences and possible solutions.


Wage inequality refers to the extent to which income is distributed in an uneven manner among a population. (Wharton High School, 2013) Gender wage inequality is unadjusted and is defined as the difference between the median earnings of men and women relative to median earnings of men. (Aly, 2017) In simpler terms, men are paid more based on their gender. On average, women are paid 80 cents for every dollar paid to men. In middle-skill occupations, workers in jobs mainly done by women earn only 66 percent of workers in a job mainly done by men. As for African American and Hispanic women, that number is even less than 64 and 54 cents respectively. (Institute for Women’s Policy Research, 2015) The difference between the amount men are paid and the amount women are paid is referred to as the wage gap.

Women all over the world have suffered tremendously due to this unjust truth. While the wage gap has slowly closed over the decades, women still experience what is called “the glass ceiling”. The glass ceiling is a phrase first introduced in the late 1980s. It is a metaphor for the invisible and artificial barriers that block women and minorities from advancing up the corporate ladder to management and executive positions. In 1995 the Glass Ceiling Commission noted that only three to five percent of senior management positions for Fortune 500 companies were filled by women. (Johns, 2013)


There are various factors that have led to the prevalence of wage inequality in our society. Women have faced so many barriers that led to their mistreatment. The commission reported various obstacles on the road to the success of women and minorities reaching the top echelons of management. These included societal, government and internal business were linked to opportunity and goal attainment, prejudice and bias.

A very common barrier is the faith in preconceived gender roles. The ancient perception that each gender has particular roles in society and household are still lingering in the minds of many. The idea that men are the breadwinners and women care for the children and meals are completely inappropriate. Motherhood is a huge causation of this. Since women are the ones that bear the responsibility of carrying children, they are sometimes minimized to that one responsibility.

Another factor that causes women not to rise to the pinnacle of success is nonflexible work hours. Women are more often than not the number one caregiver in the family. An estimated 66 percent of caregivers are female. Moreover, the average woman will spend up to 50 percent more time on caregiving than men, leaving them with less time during typical work hours. As a consequence, a woman will often end up taking time off from their career or education to efficiently perform her caregiving role. Or, they are only able to give the minimum amount of time to their jobs, decreasing their chance of promoting.

Women also allow themselves to be taken advantage of due to fear of shame. Some prefer to suffer in silence than to voice their concerns about unfair treatment. This fear; however, allows the culprits to maintain control over women’s careers.


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Employers and the human resources department decide how much each position is worth to them and whether or not they want to practice wage inequality. Human Resources would provide a range of possible salaries and the manager would decide from there. While everyone’s salary will not be exactly the same even if they hold the same position, there should be clear, indiscriminative reasons for the discrepancy.


One of the biggest mistakes working women can make is not asking for more. Research has shown that females are paid less in every company. Most companies will take advantage of this fact and give less-than-fair first offers. Women must learn the skills of negation to receive the offer they deserve. Moreover, it would important to include this skill in your resume of tools for ensuring a fair contract.

Whether on the local, state or federal level, there are a number of measures floating through committees to help further equality within wage gaps. One of the most significant pieces of legislation currently available is the Paycheck Fairness Act, which would give women better tools to fight against wage inequalities and ensure that full compensation is given to those who experience gender-based pay discrimination. Women should contact their representatives and let their voices be heard in support of these bills.

Based on a recent study, only 2.7 percent of startups receiving venture capital are headed by women. Crowdfunding platforms such as Kickstarter, where an estimated 44 percent of investors are female, stand to dramatically alter these numbers. Given the storytelling nature of investment sites of this nature, women have the platform to share their vision and plan for companies, in turn eliciting more response and funding.


The aforementioned solution will ensure employee safety as it regards to wage inequality. All employees, no matter their gender, deserves to be treated equally. Wages should be determined by the employees’ features that are directly related to the job. These features include experience and education, performance, seniority and supply and demand of talent. By doing this, employees and managers will be able to accurately compare all employees’ using these factors- making their wage system fair.

The recommendations are also aimed to maintain the integrity., of Applied Consultants & Engineering. When a business is able to eliminate suspicion of prejudice in the office, they will attract more customers and keep a high level of morale and productivity.


In conclusion, management understands that wage inequality should be a thing of the past. Today’s society should not have to struggle because of other individuals’ unfair views. Applied Consultants & Engineering is ready to make the change. The company will begin with our training exercise to teach women to negotiate for fair compensation. Then it will move onto various programs and workshops to locate striving businesses that are female owned. Through this, the company will not only give faith to others, but it will restore women’s faith in themselves.


I recommend that Applied Consultants & Engineers associate itself with the government program, HeForShe. This global movement started by United Nations Women is focused on engaging men in the fight to put a stop to the inequalities faced by women, whether it is social, political, or economical. As of October 2015, almost half a million men from every continent had pledged their support and their voices to women as they work together to end discrimination.

A number of companies are now offering perks and incentives aimed at serving their female employees, including longer maternity leaves, on-site daycare services, and opportunities to work from home. Of the companies we surveyed, none of these programs were seen as penalties to women, but rather ways of recognizing unique responsibilities and empowering them to find a healthy work-life balance. (Holunga & Brozena, 2018)

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