Boasting a diverse and inclusive workplace are no longer just marketing tactics to lure in customers and top talent — they are a necessity for business longevity.
While workplace equity includes various subsectors, employees most value equal pay according to research analyst Josh Bersin’s HR Predictions for 2022 report.
“[E]quitable and fair pay is among the greatest drivers of employee satisfaction,” said Bersin. “[I]f you want to win the war for talent in 2022, fair pay may be one of your biggest techniques.”
Pay equity lends itself to more than just equal pay — it also leads to better productivity, innovation, engagement and community, which in turn produces higher business outcomes.
Research supports this, too. An Indeed study shows that 81% of workers are more productive when they are paid fairly, while 75% of workers said pay transparency at a company could drive them to apply for a new position.
Prior to recent years, discussing pay in the workplace was viewed as taboo, but often led to major discrepancies among colleagues. This is likely why many states have implemented their own pay transparency policies to normalize equal pay.
So what can companies do to usher in a more pay equity within their culture?
This should start with a foundational understanding of what pay equity means, creating a baseline for employee pay and establishing clear goals to get there.
From there, employers need to take their pay analysis to the next level. Looking at data to ensure that pay bases are fair, understand why inequity occurs in the first place and tackle any obstacles that could impede on reaching equity goals.
