Gender parity at work: Four barriers employers can tackle now

March is traditionally the month during which Canadians and Canadian organizations recognize International Women’s Day. You may have held employee focus groups, had a special event or posted on social media. These are all really important celebrations of our collective accomplishments and a reminder of the work that’s left to do.

In this issue of GO with Eckler, we’ll spotlight four key barriers that impact gender parity in the workplace and the actions that employers can take now to drive more equitable outcomes for women and close the gaps.

Systemic challenges: When pay gaps become pension gaps

Systemic barriers, particularly pay and pension gaps, continue to shape women’s long-term financial security. Pay gaps don’t just affect today’s paycheque, they snowball into lower retirement outcomes.

Lower earnings often mean lower contributions and, as a result, smaller employer matches or smaller accruals for defined benefit pension plans. In 2024, Canada’s gender pension gap stands at 17%, with women receiving $0.83 for every dollar of men’s retirement income — a figure largely unchanged since the 1970s. And, because women outlive men by about four years on average, the savings often have to last longer.

What employers can do:

• Conduct regular gender pay parity assessments to ensure fair compensation practices.
• Offer company-sponsored, professionally managed decumulation programs with reduced fees to help women’s retirement assets last longer.
• Consider offering target benefit or defined benefit plans that pay pensions for life.

Caregiving: a compounding lifelong “penalty”

The caregiving years are often when financial outcomes are most gravely affected. Women are still more likely to take leave, reduce hours, or step out temporarily for children or aging parents – often with lifelong financial penalties because traditional retirement plan eligibility rules and annual compensation cycles don’t always pair well with that reality.

For example, retirement plans have historically rewarded uninterrupted, full-time careers, which can disadvantage people more likely to work part-time or take breaks. Compounding is also most powerful in your 20s, 30s and 40s, which often coincides with reduced working hours and paused retirement savings during peak caregiving years. Caregiving can also bring additional expenses (childcare, medical costs, and home modifications) during the same period in which income often declines.

What employers can do:

• Build some fairness into pay/bonus timing. If someone is away during review cycles, plan for off-cycle adjustments so they’re not permanently behind.
• Re-think your plan eligibility rules. If part-time or contract workers are common in your workforce, consider options that reduce “wait time” to join retirement and savings plans.
• If your plan rewards uninterrupted service, look at affordable ways to structure leave buybacks or similar features so time away doesn’t permanently shrink retirement outcomes.

Societal influence: confidence gaps are often information gaps

Let’s talk about the “confidence gap.” In benefits and retirement plans, it often shows up as an information gap. Plenty of women aren’t “risk-averse” so much as risk-aware — they want the trade-offs explained clearly before they commit. They also tend to think holistically (protection, stability, growth… all at once), and they influence a big share of household financial decisions. But limited financial knowledge, uncertainty about investment risk, and low trust in products can reduce participation and confidence.

What employers can do:

• Professionally managed fund options (like target date funds) can do a lot of heavy lifting without requiring people to become investing hobbyists.
• Stop sending one-size-fits-all education. Segment it around real-life events (leave, divorce, caregiving, return-to-work, etc.) and use plain language like: “Here’s what to do next.”
• Back it up with community. Offer mentorship and other peer sessions where questions are welcome and no one has to pretend they’re expert.

Medical realities: life stages are workforce realities

Women’s health is sometimes treated like “personal stuff” that should be kept out of the workplace. But for employers and benefit plan sponsors, it’s a predictable set of life stages that affects attendance, productivity, and, yes, retirement outcomes. Fertility journeys can be expensive and time-intensive. Peri/menopause symptoms can affect energy, sleep, focus, and attendance, and for some women that can be the tipping point that accelerates an earlier than desired exit from the workforce.

What employers can do:

• Treat life-stage benefits (family building, menopause support, elder care) like standard workforce realities — not “special cases.”
• If you cover fertility, consider structuring it by episode of care instead of a blunt lifetime maximum that can fall apart for complex journeys.
• Add virtual care so people can find help quickly.
• Make it easier to access benefits without over-sharing. The easier (and more normal) it feels to access support, the more impact your plan will have.

Here’s the bottom line: you don’t need a brand-new strategy. Audit pay and participation outcomes, pressure-test plan eligibility rules, make sure your pension plan default funds and fees aren’t eating away at savings, and build benefits and communication around real life “stuff” that includes caregiving and women’s health.

Together, HR and benefits leaders can drive progress to create a more equitable and supportive workplace for women — which in the end, benefits everyone.

GO with Eckler is a quarterly newsletter to help employers and plan sponsors support financial wellness for their employees and plan members. Please contact your Eckler consultant if you want to learn more about supporting financial wellness in your workplace.

To learn more, get in touch with our Financial Wellness team.