Equal Worth, Equal Pay: Our tenuous progress closing the wage gap for Black women

How much does society value your worth? When it comes to dollars and cents, the answer may have a lot more to do with your race and gender than your qualifications, productivity, or creativity. Black women who sit at the intersection of racism and gender discrimination have been especially impacted by pay inequality. And while there has been notable progress over the past year toward closing the pay gap, recent concerning trends in workplace DEI leadership and Affirmative Action could erase this progress in the years ahead.  

For women overall, Equal Pay Day—the day when women finally catch up to the prior year’s pay for white men—was recognized on March 14. But for Black women who earn only 67 cents for every dollar paid to a non-Hispanic white man, this day didn’t arrive until July 27. In many ways, this year’s Black Women’s Equal Pay Day was a time for celebration, as it came much earlier on the calendar compared to 2022, when it fell on September 21. However, our grasp on this progress is tenuous at best.  

After DEI surged in popularity and prominence in the wake of George Floyd’s death, workplace DEI programs have been steadily falling out of favor over the past two years—or they are being completely eliminated. Companies without DEI programs have increased—from 15% in 2020 to 20% in 2022—and there has been an 18% decrease in the number of leaders who endorse their company’s overall DEI efforts.  

The examples of this trend at play are numerous. I personally know three Black women whose positions in DEI were eliminated within the last six months. You may have read about the spate of high-profile diversity officers who exited the entertainment industry only a few months ago, with Warner Bros. Discovery laying off Karen Horne, LaTrondra Newton leaving Walt Disney Co., and Vernā Myers announcing her planned exit from Netflix. Or perhaps you saw when Chris Pernell made headlines late last year after stepping down from her position as Chief Strategic Integration and Health Equity Officer at University Hospital in New Jersey, specifically citing the racism pervading the institution for prompting her departure. The list, unfortunately, goes on.  

Amidst this turmoil, it’s not surprising that, at every level, women and minorities say they are significantly more likely to need to change companies to advance their careers, citing the environment created by their companies’ leadership as the primary factor behind their intention to depart. The pendulum has clearly begun to swing the other way when it comes to supporting and advancing historically marginalized groups within the workplace.  

Amplifying this impact is the recent SCOTUS ruling on Affirmative Action, which puts the future workforce of college-educated Black women at risk. Combined, these movements stand poised to erase the recent progress made in the wage gap by targeting people of color at nearly every stage—potentially lowering those with access to a college education, eliminating positions more likely to seek out talent from historically marginalized communities, and decimating support frameworks for those currently within the workforce.    

So, what does this mean for Black women? If companies are eliminating or de-prioritizing DEI roles and programs and there are also fewer Black women with college degrees entering the workforce, there will inevitably be significant repercussions in terms of career opportunities, economic mobility and resiliency, representation in leadership, and beyond. Most alarmingly, the impact won’t stay contained to the workplace or paychecks – the implications go home with Black women, impacting their health at a cellular level and resulting in a surplus of unnecessary Black American deaths directly tied to the effects of racial discrimination.  

The implications extend to businesses themselves. Too few people realize the wage gap and racism in the workplace are negatively impacting companies today. Diverse workplaces are 2.4x more likely to outperform their peers financially and are more attractive for recruiting coveted talent. Those not prioritizing these issues are at risk of falling behind and alienating their future workforce.  

The reality is that U.S. racial and ethnic demographics are expected to shift within the next 20 years, making our population majority non-white. When today’s “minorities” become tomorrow’s majority there will be massive repercussions for companies that fail to employ inclusive operational, remuneration, and recruitment practices. The challenge becomes making tomorrow’s problem a priority for corporate America today. When a CEO’s performance is measured in quarterly increments, there are fewer incentives to implement the kind of long-term structural changes needed to close the wage gap. But when that future does arrive, the impact will be significant.   

Alarmingly, the World Economic Forum estimates women won’t attain parity with men for another 131 years. For Black women, that timeframe will all too likely be even longer. We can’t afford to wait that long. This is a problem for today that requires immediate and urgent action. Otherwise, I fear we’ll be recognizing Black Women’s Equal Pay Day later and later every year.