How Companies Are Creating Pay Equality
How Companies Are Creating Pay Equality
Despite the passage of the Equal Pay Act and other fair pay legislation, women in many companies across the United States still earn less than their male colleagues. The pay gap is even more prominent for minority women, who often find themselves among a company’s lowest earners when compared against male or white coworkers. As the American workforce grows in diversity, several organizations are working to remedy this issue by implementing changes from within. Here are three major ways that companies have fought to abolish the wage gap.
Establish Pay Transparency
Discussion of salary within a company has traditionally been a somewhat taboo topic, but some companies are working to eliminate the stigma of discussing pay in hopes that it will promote better wage equality. Oftentimes, pay inequalities remain unnoticed simply because there is a lack of discourse surrounding salary. If employees are openly aware of each other’s salaries and the salaries offered at different levels, this makes it much more difficult for pay inequalities to persist. Additionally, it is beneficial to encourage managers to discuss pay decisions with one another, rather than making choices unilaterally. The more open discourse becomes, the easier it will be to address biases before they become an issue.
Create a Clear Structure for Payment
One of best ways to promote salary transparency while maintaining equality is to implement hiring and payment guidelines. Many businesses operate without clearly established procedures for handling things such as hiring, promotions, and differing levels of experience among employees. To ensure fair pay, companies should institute a compensation structure. This involves looking at market salary data, working with career development professionals, and observing where pay gaps currently exist. It also means that the company must determine precisely what employee skills or experience they are looking for at each pay grade.
Formatting a thorough payment philosophy may take several months or more, but creating a clear framework is a crucial step needed to achieve company-wide pay equality. When a business has a concrete payment policy, managers and employees can look to it for guidance on maintaining pay standards that benefit all workers.
Maintain Oversight
Creating a fair payment structure does little good if that structure is not enforced and maintained. Among companies that have achieved pay equality, a key component of their strategy typically involves making regular salary check-ins. Conducting salary audits at periodic intervals will help managers analyze where issues may arise and stay on track with the company’s equal compensation system.
Another helpful method to maintain pay equity is to eliminate the practice of asking job candidates for their salary history. This is a notable change from the conventional hiring practices at many businesses, but it is one of the best ways to guarantee that new employees do not continuously suffer the effects of discriminatory practices from previous companies. It also incorporates new hires into the organization without undermining the established payment framework.
Achieving pay equality requires effort and dedication from everyone within an organization. Making a sudden move to eliminate wage gaps may be a bold step for a business, but it speaks strongly to the company’s values of fairness and honesty. In the end, this commitment is well worthwhile, and it will contribute to a more positive company image and a better work environment for all employees.
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