International Equal Pay Day: Why firms can't afford to look away

September 18 is International Equal Pay Day, a United Nations observance that calls out a stubborn truth: Women still earn about 20% less than men worldwide, with even wider gaps for women of color and caregivers. For accounting firms already battling a historic talent shortage, ignoring pay equity isn't just unfair, it's unsustainable.

Pay inequities rarely show up all at once. They creep in quietly through a lower starting salary, a smaller raise, or a delayed promotion. Over time, those small gaps snowball into career-long disparities. 

Research from a 2025 Payscale study found women overall still earn only 83 cents for every dollar earned by men, with even larger gaps for women of color. A McKinsey and LeanIn Women in the Workplace 2023 report identified the "broken rung" at first-level management as the single biggest barrier to women advancing into leadership. 

'Flying under the radar' won't work anymore

For decades, many firms assumed pay equity wouldn't become an issue unless they were publicly challenged in some way. But that assumption doesn't hold true with today's workforce. Gen Z is rewriting the rules. They expect to see pay ranges in job postings, they compare salaries openly, and they treat transparency as a measure of credibility. Surveys show that more than 80% of Gen Z workers support sharing pay information, and nearly half say it's a top factor in evaluating an employer. 

If you think silence will protect your firm, think again. What you don't disclose, your employees will. Even firms that have avoided these conversations for decades won't be able to count on secrecy much longer. 

What firms can do now?

Here is some good news: Pay equity isn't a mystery, and it is not political. It's a management discipline. A few key practices can make a big difference. 

• Conduct regular pay audits to identify unexplained gaps and adjust as needed.
• Have more than one person review pay and promotion decisions to avoid bias or favoritism. 
• Maintain and publish clear pay bands with transparent criteria for raises and promotions.
• Ban salary-history anchors that carry past inequities into new roles (as required in many states).
• Be transparent about how decisions are made. Even if the process isn't perfect yet, clarity builds trust. 

One of the biggest misconceptions about pay equity is that it handcuffs managers or rewards mediocrity. In reality, equity is about fair processes, not identical outcomes. High performers should and will be rewarded more, but those rewards need to be based on clear, consistent criteria, rather than subjective impressions or who negotiates the best.

Pay equity audits don't eliminate performance-based pay; they make it stronger. By documenting how raises and bonuses are tied to measurable performance, firms can reward top talent while ensuring that bias, favoritism, or simple oversight don't quietly disadvantage others. In fact, research shows employees are more motivated when they trust the system is fair, because they know their contributions will be recognized. Equity isn't about flattening pay; it's about building trust that pay differences are earned, not arbitrary.

The business case is clear

International Equal Pay Day is more than a symbolic observance; it's a warning. In a profession where talent and trust are everything, inequities erode both. Transparent, fair pay systems are not "extras" — they are essential tools for attracting the next generation, keeping your best people, and protecting your reputation. 

Accounting firms that treat pay equity as a core management practice will be the ones left standing from the talent wars. Those that don't may find their best employees walking out the door, resumes in hand, and no one waiting to replace them.