How to improve the gender pay gap at your startup
The gender pay gap is still a reality in European tech, but with new EU pay transparency laws coming into play, startups are under more pressure—and more empowered—to create real change. The team at compensation benchmarking platform Ravio shared their top recommendations for startups that want to lead the way in pay equity.
Start with a clear compensation framework
A structured approach to compensation is the foundation for fair pay. Ravio suggests creating a full framework that includes a compensation philosophy, job levels, seniority bands, and salary ranges by role and location. This helps startups avoid inconsistent or biased decisions and sets the stage for equitable pay practices from the start.
Make sure everyone understands the system
Once the framework is built, it’s essential to communicate it clearly across hiring and leadership teams. Instead of asking candidates about past salaries or expectations, stick to your established salary bands—and explain why. This promotes consistency and fairness, especially during negotiations.
Fix hiring to improve representation
One major reason the pay gap exists? A lack of women in senior roles. Ravio advises startups to audit their hiring processes to uncover weak spots. Use inclusive job descriptions, diversify outreach via specialized job boards, and analyze where women are dropping out of the pipeline. Get feedback from candidates who decline offers to learn and adapt.
Standardize offers to prevent pay gaps
Removing salary negotiation altogether is one option—but not always practical. Instead, Ravio recommends setting clear salary ranges for each role and training hiring managers on unconscious bias. This ensures offers are made fairly, without being influenced by a candidate’s negotiation skills or previous pay.
Get leadership buy-in
No system sticks without top-level support. HR teams should build a strong business case for pay equity, highlighting legal risks, commercial benefits, and the boost it brings to employer branding. When CEOs champion the cause, it becomes part of the company’s DNA.
Source: https://sifted.eu/articles/gender-pay-gap-startup-ravio
