Objective compensation systems can eliminate gender pay gap

In the other study, University of Alabama at Birmingham researchers analyzed surgeon salaries earned during 2014-2017. In 2017, the university switched some surgeons to a new compensation system based on work revenue value units with incentives.

Of the surgeons at the institution, 31 men and 11 women were eligible for the new compensation system. Before it was put into place, female surgeons made 46% of the salaries of men with similar revenue value unit production. “Female surgeons are now earning 72% of what their male colleagues earn,” the researchers reported.

In an interview, study lead author Melanie Morris, MD, said the new pay system unexpectedly reduced the gender pay gap. “The rationale for this department compensation plan was to create a fair and transparent compensation system for all faculty,” she said. “In doing so, this plan unintentionally led to these described changes to equalize an unrecognized disparity. We are proud of the result and recognize there is still more work to do. Each institution should know their own data to see if a gender pay disparity exists and devise a plan to address it.”