The Gender Pay Gap in Switzerland

The Gender pay gap in Switzerland is narrowing, where are we at the moment, what is the gender pay gap in technology and how do we achieve further progress

The Gender pay gap in Switzerland is 18%, with the “real" gender pay gap at 7.8%.

Despite advancements in gender equality, women in Switzerland continue to face disparities in wages compared to their male counterparts.

In Switzerland, studies indicate that women earn on average 18% less than men. 52% of this gap can be explained by quantitative factors, however, when these are taken into consideration the gender pay gap is still 7.8% for like-for-like work.

The factors that can “explain” 52% of the gap include professional choices (women are overrepresented in lower paid professions), years of service or qualifications. The 48% that cannot be explained (or the 7.8% gap) can be termed discrimination.

Traditional gender norms, biases, and societal expectations often steer women towards fields such as education, healthcare, and social services, which tend to offer lower wages compared to male-dominated sectors like finance or technology.

Part-time work and career interruptions among women, often due to caregiving responsibilities or societal expectations, also contributes to the gender pay gap. Part-time positions generally offer lower wages and limited opportunities for career advancement, resulting in reduced earning potential over time.

Women continue to face challenges in attaining leadership positions within organizations. The underrepresentation of women in executive roles and corporate boardrooms affects their access to higher-paying positions and decision-making power, perpetuating the gender pay gap.

Research suggests that women are more hesitant to negotiate salaries compared to men, leading to potential disparities in starting salaries and subsequent wage growth. Additionally, limited pay transparency within organizations can exacerbate the gender pay gap, making it harder for women to identify and challenge wage inequalities.

The top four things Switzerland can do to address the Gender Pay Gap:

1. Challenging Gender Stereotypes and Biases: Addressing societal gender biases and challenging traditional gender norms are fundamental to achieving pay equity. This includes promoting educational initiatives, fostering inclusive workplace cultures, and dismantling gender stereotypes that limit women's career choices, often before they even enter the workforce.
2. Encouraging Work-Life Balance: Creating a supportive work environment that encourages work-life balance can help reduce career interruptions for women. Flexible work arrangements, parental leave policies, and childcare support can enable women to continue their careers without sacrificing financial stability.
3. More affordable childcare: Providing better childcare options to enable (especially women) the possibility to return to work in higher percentages will be key. Traditionally children return home for 1.5 hours over lunch, which makes it difficult to balance work and family affairs. On top of this fathers taking a greater role in caregiving can also assist women return sooner or in higher percentages to the workplace.
4. Equal Opportunities and Development of Talent: Organizations should provide mentoring, sponsorship, and training opportunities to help women progress into under-represented and leadership positions. Likewise, males should be encouraged to partake in traditionally female led professions.

The gender pay gap remains a significant challenge in Switzerland, impeding progress towards gender equality in the workforce.

Expecting parity overnight is unrealistic. Societal changes take time, and gaps in the pyramid mean that there needs to be both focus on improving the base of the talent pool as well as those at the top. Put simply, until females in middle management reach close to parity it’s unrealistic to demand it in the boardroom, despite being something that we should aim for. Progress is the key.

If you’re interested in increasing diversity in your team, get in touch to discuss how we can support you.