Addressing Pay Equity

Creating an Equitable Organization Through Pay

Paying a Diverse Workforce

As workforce diversity continues to increase, more employees are affected by potential pay inequities. To combat this issue, organizations are taking action to address pay equity, however, only 28% are confident that that have closed gaps between employees performing similar work (role-to-role-gaps). Organizations often struggle because these conventional approaches treat pay equity as a one-time initiative that is only focused on the correction of existing gaps.

What are the Best Organizations Doing?

Progressive organizations are more effectively addressing pay equity and driving talent outcomes by establishing Pay Equity as a fundamental component of the rewards function. They integrate audit practices that more accurately identify role-to-role pay gaps, communicate to combat negative employee perceptions, and proactively manage practices along the talent lifecycle where inequities can occur.

To prevent role-to-role pay gaps from reoccurring organizations should focus on the compensation practices where inequities can occur, including:

  • Recruiting
  • Hiring
  • Performance Management
  • Promotion

How to Address Pay Equity Issues

Download CEB, now Gartner's 'Addressing Pay Equity' key excerpts research study to learn how organizations can progress pay equity initiatives by focusing on three key strategies:

Sustain Equity Through Integrated Assessments

Integrate pay equity assessments as a key process of the compensation function, rather than treating it as an ad hoc initiative.

Manage Perceptions Through Open Communication

Address employee perceptions of pay gaps through communication, rather than relying on the correction of gaps to drive employee outcomes.

Keep Pay Gaps Closed Through Proactive Prevention

Prevent the creation of pay gaps across the compensation life cycle, rather than limiting efforts to assessing and correcting existing gaps.