Pay equity has been a hot topic over the last few years, fueled by national social movements, including #BlackLivesMatter and #MeToo. California recently passed a law requiring employers to file equal pay reports annually, starting in March 2021. Colorado and a dozen other states have either passed or are considering a variety of pay transparency bills. And there are “no signs of it slowing down,” says Tom McMullen, who leads the global rewards and pay equity practice at Korn Ferry.
How to Identify — and Fix — Pay Inequality at Your Company
Women and people of color still earn less than white men for the same work — and this disparity compounds over time.
November 03, 2020
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Summary.
Companies who say they care about inclusion and belonging can start by paying employees fairly. To start, initiate a pay equity audit in which you compare the pay of employees doing “like for like” work (accounting for reasonable differentials, such as work experience, credentials and job performance) and investigate the causes of any pay differences that cannot be justified. Next, determine how you’ll remediate any issues, and identify operational gaps that led to the salary discrepancies in the first place. Finally monitor your hiring, promotion and compensation processes on an ongoing basis.