Whether you’re a first-time job seeker, a seasoned business leader, or anyone in between, you undoubtedly care about pay equity. Pay equity impacts both businesses and employees, and contributes to a healthy balance of satisfied workers and high-quality operations. This in turn contributes to a company’s culture and ultimately, its reputation.
What is pay equity? Pay equity is the practice of compensating employees for their work regardless of factors such as race, gender, disability, and so on. The federal Equal Pay Act of 1963 makes it illegal to discriminate with regard to pay on the basis of a worker’s sex.
Equitable pay benefits employers in numerous ways. Creating a culture of equity within the company contributes to a solid reputation. Those with positive reputations often attract and retain top talent, experience greater workplace efficiency, and create happier, thriving workplaces.
While that may sound simple enough, creating true pay equity can get complicated. These days equitable pay involves far more factors than gender. Many states have adopted their own equitable pay laws. These laws usually cover hiring and promotion issues in addition to pay.
A basic guideline to consider is:
- A commitment to compensating every employee fairly
- Careful review of reliable employee data
- Ongoing review and reconsideration
- A willingness to challenge assumptions
Since equitable pay can become a legal issue, companies are wise to address it before problems arise. There is no time like the present to gather employee data, evaluate workplace representation, identify potential problems and solutions, and draft a plan to promote a culture of fairness and unity in the workplace.
Working with an experienced business attorney can help you to understand the slippery slope of pay equity. Give us a call to discuss your company’s culture, and we can help you decide upon your next steps.