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.
Paying a Diverse Workforce
The Price of Pay Equity Perceptions
Watch our video to learn more about the impact that employee perceptions of pay equity can have on your organization.
Globally, employee sentiment of pay equity is poor. Although some progressive companies are very publically responding to pay equity gaps, one in three employees believes that there are individual pay gaps at their organization.
When employees perceive pay inequities at their organization their intent to stay with the organization is negatively affected which in turn has a substantial impact on employee turnover.
In fact, the perception of pay gaps existing is more harmful to employee retention than negative experiences such as a decline in manager quality or a pay freeze.