Why is pay equity important for businesses?
How can businesses ensure pay equity?
How can businesses measure pay equity in their own company?
Pay Equity
Pay equity is the principle of providing fair compensation to employees based on the value of their work, without bias related to gender, race, or other protected traits. It aims to eliminate unjustified pay gaps between individuals doing comparable jobs.
Why is pay equity important for businesses?
Pay equity establishes fair compensation for employees. It helps eliminate wage gaps based on gender, race, or other protected characteristics. Pay equity is not just a best practice; it's required by law. The Equal Pay Act of 1963, along with state and local regulations, prohibits wage discrimination.
How can businesses ensure pay equity?
Start by standardizing compensation management practices, using clear job descriptions, conducting regular pay reviews, and removing bias from hiring and promotion decisions. Transparency and consistency are key.
How can businesses measure pay equity in their own company?
Organizations can measure pay equity by examining compensation data across roles, genders, and other demographic factors. This involves identifying any unexplained pay gaps among employees performing similar work and comparing salaries within departments, job levels, and functions.
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