Impact of Gender Pay Gap on Workplace Productivity and Employee Morale in Canada

Abstract

Purpose: The aim of the study was to analyze the impact of gender pay gap on workplace productivity and employee morale in Canada. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The gender pay gap in Canada negatively affects workplace productivity and employee morale. Disparities in pay can reduce motivation and engagement, leading to lower productivity and higher turnover. Female employees, in particular, experience decreased job satisfaction and trust in organizational fairness, affecting overall morale. This gap also hampers an organization's ability to attract and retain talent, impacting its effectiveness. Addressing pay equity is essential for improving productivity and maintaining a positive work environment. Unique Contribution to Theory, Practice and Policy: Equity theory, social identity theory & motivation-hygiene theory may be used to anchor future studies on analyze the impact of gender pay gap on workplace productivity and employee morale in Canada. Transparent pay practices involve openly sharing information about salary ranges, promotion criteria, and compensation decisions within an organization. Implementing gender pay gap reporting requirements at a policy level mandates that organizations disclose data on gender-specific pay disparities.