GapSquare Acquired by Xperthr - Gender Pay Gap Analysis

The Widening Gender Pay Gap and a Notable Acquisition

According to the International Labour Organization (ILO), workplace inequalities affecting women are worsening as a result of the COVID-19 pandemic, and are projected to continue for the foreseeable future. The World Economic Forum estimates that achieving global gender parity in economic participation and opportunity will require 267.6 years.

Consequently, it is increasingly vital that entrepreneurs dedicated to this cause actively work to resolve the global gender and ethnicity pay gap.

Gapsquare's Acquisition by XpertHR

Gapsquare, a U.K.-based startup founded in 2017, has been at the forefront of addressing these issues through the application of machine learning. The company’s analytics software, designed to analyze and monitor pay disparity, equality, and gap data, has been acquired by XpertHR, a division of RELX, for an undisclosed amount.

Sources indicate that Gapsquare operated without securing institutional venture funding. The platform, along with its co-founders Dr. Zara Nanu and Ion Suruceanu, will now integrate with the XpertHR team.

Previously, Gapsquare served clients including Vodafone, Condé Nast, and Serco, processing data from a workforce of tens of thousands of employees.

FairPay Pro: Actionable Insights for HR Professionals

Gapsquare’s core offering centers around providing HR and Reward professionals with practical insights into their organization’s existing pay gaps.

The “FairPay Pro” platform identifies variables related to employee demographics – including gender, ethnicity, sexual orientation, and disability – to pinpoint the root causes of pay gaps. It also facilitates the proposal and tracking of corrective measures.

Statements from Leadership

Nanu stated that transparency regarding compensation fairness and pay reporting is a priority for many businesses. Gartner research reveals that over 80% of global companies are motivated to address pay equity and gaps, driven by a changing workforce and the increasing importance of transparency, sustainability, and equality among younger generations.

She believes that the combined strengths of XpertHR and Gapsquare will better enable them to meet the evolving needs of their customers and businesses worldwide.

Scott Walker, managing director at XpertHR, expressed his enthusiasm about welcoming Gapsquare into the XpertHR family. He emphasized their shared mission of fostering purposeful workplaces for all individuals.

Walker highlighted that by integrating Gapsquare’s advanced technology with XpertHR’s reward data expertise, they can empower employers to create inclusive environments where pay reflects value and diverse talent can flourish.

The Inspiration Behind Gapsquare

Dr. Nanu, whose parents were both teachers, was motivated to investigate the gender pay gap further after her involvement with a female trafficking prevention program in Moldova. She observed that women were being exploited in sweatshops and trapped in poverty due to low wages.

Having grown up in Chișinău, Moldova, she later moved to Bristol, U.K., and established Gapsquare.

Nanu has discussed how the Soviet emphasis on gender equality – with quotas for women in parliament and sectors, and free childcare – contrasted sharply with what she perceived as a regression in Western practices.

A Testament to Persistence and a Critique of Venture Capital

In an interview with The Guardian in 2018, she noted that Moldova had systems in place to promote gender equality that were lacking in the U.K.

The story of Gapsquare underscores the challenges of securing venture capital to address gender disparity within a predominantly male corporate and venture capital landscape. Nanu’s success in bootstrapping the company, achieving a successful exit with her team, is a testament to her dedication. However, it also serves as a criticism of the venture capital industry, and it is likely this entrepreneur will continue to make an impact.