Are employers paying their employees equitably?

ADP Research Institute®

Are employers paying their employees equitably?
Doing things right and doing the right thing.

Growing Expectations For Greater Transparency

The U.S. workplace reflects American society in many ways. One example is the growing expectation of today’s employees and job candidates for greater transparency and fairness concerning compensation. For employers, pay equity can also help determine a company’s reputation.

Transparency is apparently also on the mind of the federal government. The Equal Employment Opportunity Commission (EEOC) recently expanded its EEO-1 form requiring many employers, starting in 2018, to provide pay data information. In aggregate, this data potentially will provide more transparency into pay practices and help employers answer the key question: Is there equal pay for equal work?

The ADP Research Institute® – a specialized group within ADP® – has helped to shed light on pay equity issues with input from two recent studies. A segment of one study on Affordable Care Act (ACA) compliance examined the preparedness of employers to comply with expanded EEOC reporting. The second study examined the current state of gender pay equity in the U.S. labor force.

Compliance Awareness Is Lagging

The EEOC compliance requirement impacts a wide range of employers – specifically those with 100 or more employees (50 or more if the employer has a federal government contract).

The ADP Research Institute’s 2016 Compliance Confidence Study has revealed that some employers were either unaware of the new EEO-1 form reporting requirements or not confident in their ability to comply by the 2018 reporting deadline.

This lag in preparation can impact an employer’s compliance efforts as well as plans to address pay inequities. At stake can be an organization’s reputation among employees and potential employees as a favorable – or unfavorable – environment for top talent.

INFOGRAPHIC: Help Win the Talent War – Focus on Pay Equality

About this report: This report is based on information from the Equal Employment Opportunity Commission (EEOC) regarding changes to the EEO-1 form, and two 2016 studies from the ADP Research Institute®: ADP 2016 ACA Confidence Study and State of the Workforce by Gender.

Keywords: Compliance, Payroll

Business Types: Research for Midsized Organizations, Research for Large Organizations

Roles: Research for Finance Professionals, Research for Human Resources Professionals

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