Seventy percent of companies admit they’re “mediocre or below” regarding pay equity. That’s an issue, especially for organizations that say they’re prioritizing people-focused initiatives, transparency, and DEIB.
The good news is that leaders from the same study acknowledged these shortcomings and plan to build a more equitable environment for their employees.
But before committing to a pay equity analysis or remediation, leaders must first understand the ins and outs of pay equity laws and compliance.
That’s because fair pay isn’t just a moral initiative (although treating people equally and with respect should be engrained in copmany culture). It’s also a legal one: pay equity laws ensure you’re not accidentally (or intentionally) discriminating against specific groups.
Once that foundational knowledge is in place, HR and Finance leaders can work together to audit pay practices and make any necessary changes to create an inclusive and fair workplace.