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Companies must use real-time compensation data to ensure equal pay – TechCrunch


Diversity, equity and Inclusion initiatives (IEDs) are often viewed as an issue that can be solved intuitively by certain segments of the HR team. However, in reality, it has to come from a data-driven approach that encompasses the entire workforce.

The main aspect that companies typically look to to treat employees fairly is compensation. However, having the conversation and agreeing on the need for equality does not mean it will be achieved organization-wide.

Particular attention should be paid to addressing inequalities in the areas of attracting and hiring candidates, onboarding, performance appraisal, compensation and promotion.

In a recent Mercer survey that included data from more than 1,000 companies in 54 countries, 81% agreed it was important to have a plan to advance gender equality, but only 42% had one. in place. This indicates a symbolic attitude indicating that companies are happy to discuss the problem without addressing it directly.

Despite the fact that women make up about half of all college graduate workers in the United States, they are underrepresented in positions of power – only 8% of Fortune 500 companies are headed by women, and, incredibly , only 1% by women of Color. Additionally, the latest U.S. census found that full-time employed women are paid an average of 17% less than men.

Although there have been measures to ensure equal pay, such as Canada’s Pay Equity Act, which stipulates that men and women in the public sector should be paid equally, it does not cover the sector. private. Since the Institute for Women’s Policy Research estimates that equal pay will not be achieved until 2059, there is still a lot of work to be done.

Particular attention should be paid to addressing inequalities in the areas of attracting and hiring candidates, onboarding, performance appraisal, compensation and promotion. Companies must think about initiatives supported by objective tools to progress, identify problems and develop strategies for solutions. This is where data can be a great tool for providing insight into DEI: highlighting gaps and areas where there are biases.

Start with data collection

The first step is to create a dataset so that tangible metrics can be used and turned into actionable decisions. To do this, diversity and inclusion officers must have the ability to eliminate stigma.

Obviously, data would drive decisions in areas like compensation. But all too often, director-level discussions don’t involve the talent acquisition team. To eradicate the pay gap and ensure equal pay based on individual merit, this must change. Line managers and talent acquisition teams know their people best and are in a good position to get the right information to help senior managers make fair decisions.



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