Now that organizations have both the data and the tools to examine pay disparities, it's important to understand pay equality issues in your organization. Here are some of our past posts to help you explore pay equality.
"Pay equity has become a top consideration for employers — and it's not just for compliance reasons. As organizations put new systems in place for tracking and assessing pay equality, it opens up room for potential self-examination and can help organizations determine where they stand in relation to equitable pay, which can be a vital part of attracting top talent."
"Working toward pay equality isn't just a nice thing for your enterprise to do, it can actually improve your bottom line. When you have unfair pay in the workplace, it can hurt morale and cooperation between your employees, but it could also set your organization up for a possible lawsuit for gender or racial discrimination. Pay equality could also serve to improve employee retention. If any talented employee feels underpaid, they could be more likely to leave."
"Depending on the facts and circumstances causing the pay discrepancy, your organization could also be violating the federal Equal Pay Act or corresponding state laws. Governments around the world are considering legislative changes to address this issue. California and Massachusetts both recently passed pay equity legislation, while the Guardian reports that Germany is considering its own laws for equal wages. As laws trend in this direction, it would be a good time for your organization to get ahead of the issue."
"Millennials now represent the largest share of the workforce, and as a group, their preferences and habits have greatly influenced the way that businesses recruit, hire and train employees. The influence of millennials has also affected the way work gets done and the way employee benefits are structured — many millennials value flexible schedules and remote work options. However, the millennial influence has yet to move the needle on pay equity — almost one-fourth of millennial women feel that being a woman has hindered them from the ability to get ahead at work."
"Employees and candidates alike may see an organization's commitment to ensuring equal pay as a fairness issue that aligns with their own values. According to Glassdoor, a not surprisingly 93 percent of American employees believe men and women should be compensated equally for their work. And 55 percent of men and 81 percent of women say they wouldn't apply for a job at an organization with gender pay gaps. So when you have a real or perceived gender pay gap problem, you could also have a recruitment and engagement problem."
A downloadable infographic with data and research from ADP's Research Institute on pay equality and why it matters.
Want more? Visit the Pay Equity Resources Page for more articles, data, and insights to understand and manage pay equity at your organization.
SIGN UP FOR THE SPARK NEWSLETTER