How Can the Staffing Industry Reduce the Pay Gap?

Can recruiters within the staffing industry help reduce the pay gap? The answer is yes. So how can this be done exactly? First and foremost, they must be willing to recognize the serious imbalances across our workforces and how it has impacted gender pay gap, signifying the labor market inequalities. The pay gap has always been a faulty element in the workforce that is damaging to us all, as no one gender is stronger than the other.

Here’s how staffing agencies can reduce the pay gap.


Luckily, because of those willing to take a stand, there are laws in place now forbidding companies to inquire about candidates’ salary history. This is just one small but mighty way to force businesses to budget more intentionally for the position at hand rather than only focusing on the candidate type. For instance, those hiring for a senior marketing manager role should first determine the compensation range before trying to make an offer. Plus, businesses will most likely be more open regarding how they work their compensation, their comp package development, and how to get promoted. If they remain honest and consistent about these components, it will build current and potential employee trust, which is invaluable. Communication must be obvious throughout the decision-making process.

Disregard Salary History

If we disregard an individual’s salary history, it will help build the bridge on the gender pay gap. Recruitments should determine the skillset fit and a cultural match for both the organization and the candidate. Retention is based on the strong recruitment of the best talent that is the right fit. Understanding candidate needs is a great starting point rather than focusing on past salary. Then their goals can be measured against required skills, budget, and organizational culture fit for a more successful hire. A “Pay for performance” is another method used that seems to work for closing the gender pay gap as well as keeping employees motivated.

The Pay Perception

Recruiters must consult both their employers and their clients on what pay scales should look like. If clients are asking for a pay bracket that is breaching equality laws, it is the recruiter’s job to advise them on what is unacceptable and illegal and direct them on a better path. It is beneficial to explain to clients that offering a candidate an acceptable wage is well worth their while as it will bring the right skills, regardless of gender. At the same time, candidates should be advised never to compromise on their own behalf.  If they hold themselves accountable for that fairness, there is an opportunity to challenge the status quo and establish a fair playing ground.

Female Coaching

Female leadership, mentorship, and consulting for candidates in aligning their skills to meet market demands can go such a long way to reduce the pay gap. It is important that both male and female candidates with the same skills are given a fair shot for the same salary. Candidates should have the confidence to negotiate salary options as well as what other opportunities are available. Some individuals are not used to doing this and may have even been shunned for it, so coaching and support can build negotiation skills so they can stick to their worth.

Let’s Be Clear on What is Right

At the end of the day, it is up to employers to ensure that they do not pay female employees less than male employees, or if they do, they have a good reason for doing so. However, recruiters should recognize the power they have in directing these kinds of decisions. Internal avocation for poor direction within the firm should be called out for foul play. Sometimes things go unnoticed or are not intentional, but the recruiter’s voice can make a massive difference. Therefore, recruiters should take a stand when they see that an improvement can be made. Mishaps from time to time are inevitable, emphasizing the importance of staffing liability insurance.

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.