HR Consultancy: Dealing with Gender Pay Gap in Singapore

22 November 2021

Foreign employees are considered highly valuable assets needed to keep the economy going in most countries.

A recent study released by the Ministry of Manpower (MOM) and National University of Singapore (NUS) in 2020 showed that the adjusted gender pay gap in Singapore in 2018 was 6.0 % and the unadjusted pay gap at 16.3%. The adjusted gender pay gap is to account for measurable factors such as age, education, occupation, industry, and usual hours worked. 10.3% of the pay gap can be attributed or explained by these factors.

Reasons for the Gender Pay Gap

1. Occupational Segregation among the Genders

The most significant reason for the gender pay gap in Singapore is that men and women tend to inhabit different industries. Women still tend to take up occupations in industries such as nursing, teaching and administration. In contrast, men tend to remain in occupations such as medical doctors, professionals in engineering or information technology. These traditionally male occupations are generally higher-paying as compared to the professions with traditionally higher shares of females. 

Various factors possibly influence occupational segregation:

2. Human Capital Factors 

Human Capital factors refer to the age and level of education of men and women. This impact on the gender pay gap is modest as men and women in Singapore have similar profiles of education and age. Research by MOM and NUS shows that it only accounts for 1.9% of the unadjusted gender pay gap. 

Build HR Strategies to Reduce the Gender Pay Gap

Cultivating a gender-neutral work environment is imperative for a company to grow. Occupational factors for gender differences does not equate to a difference or lack of capability. In fact, with the technological changes in the labour market, interpersonal and social skills are predicted to be growing in importance.

Gender-diverse companies have reported better productivity and higher profits; leaders and managers need to recognise that having both men and women at the table would cultivate a proficient and healthy culture at work.

 1. HR Job Evaluation Framework for Inclusive Hiring

Companies should develop hiring strategies that increase gender diversity at the workplace without ignoring merit. With a proper job evaluation framework designed by HR experts, Liberte can analyse and create relevant job descriptions specific to the company’s organisational structure. Employers can attract the right talents with the proper merits with an inclusive and efficient HR strategy. Our HR strategies will also ensure a fair and competitive salary scale that will not discriminate genders, making sure to hire the right women – or men – for the job.  

2. Building A Flexible Workplace 

To achieve better work-life balance and retain more women in the workforce, companies should design a flexible HR compensation and benefits strategy. Enhanced parental benefits and leaves strategies should be available for both male and female employees so that women are not penalised for motherhood. Full-time, flexible work arrangements can reduce societal expectations on women to centre themselves around their families.

Outsource HR Strategies to Liberte

Offering strategies that satisfy a gender-inclusive workforce can be challenging for employers to manage. Strategies for diversity should not be a hard blanket policy but customised to help the company grow efficiently. Companies that successfully reduce this gender pay gap will bring out the best in their people and ensure sustainable business growth. 

Contact Liberte to outsource gender-inclusive strategies that would bring your organisation growth.

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Liberte Consulting
160 Robinson Road
#04-09 SBF Center
Singapore 068914
Phone: 6909 2084
Email: enquiry@liberte.com.sg