Erasing The Pay Gap

Pay equity is a hot topic right now. For many employers, it’s a complicated and challenging issue to solve. Opportunity gaps and unclear decision-making are just a few issues employers across the region can face when tackling these complex topics. Compensation adjustments and sticking with proven diversity, equity and inclusion principles can help. The first step is to complete a thorough pay analysis. This will shine a light on opportunities and identify benchmarks necessary to measure progress. Immediate adjustments coupled with longterm systemic change should follow.

Here are some frequently asked questions on the subject:

Q: Our company will be conducting a pay equity analysis soon. What are some factors that we should consider?

It’s great that you are taking a proactive approach. “When it comes to pay equity, the cost of not doing anything is a far greater risk than the cost of taking action,” says Katie Bardaro, chief customer officer at Syndio. “The longer you put off addressing inequities, the more expensive remediation becomes.”

You’ll want to see wage data comparisons for employees in similar roles (the adjusted pay gap), but also the pay for groups of employees regardless of title or job description (the unadjusted gap). Don’t just compare women to men, but ensure you are studying possible gaps based on other intersectional identities like race, age, physical ability, and sexual orientation. Often when comparing this data, wage gaps widen.

Once you have the data, you can determine where wage gaps exist in the organization by job description, department, or even by hiring manager. Look for outliers. Does equity exist in most areas, except for a certain department? Why is this and what can be done to remedy the situation?

Q: Our organization found that there is equity among gender and race at entry-level positions, but fewer women and people of color serving in higher paying and executive level roles. What can we do to fix this issue?

Solving for these “opportunity gaps” is essential to retain top talent and to create a workplace in which everyone can flourish. As with all diversity, equity and inclusion work, sometimes the best way to create positive change is by asking employees directly. If you see a representation gap in higher paying roles and the reason isn’t obvious to you, ask your employees what structural support they need to move up the talent pipeline.

You might find that attrition is created when workplace flexibility is limited or removed, mentorship and sponsorship programs are lacking, or there isn’t a biasfree process for senior role recruitment. Leadership, people operations, and diversity, equity and inclusion teams can create policies that would remove some of these barriers. It’s also important to acknowledge managers will be responsible for putting any new — or previously created — policies into action. Fostering an inclusive culture cannot be achieved without ensuring that everyone at the organization knows their role.

Routine training for managers on diverse hiring practices, compensation negotiation, and unbiased performance management is key and another way to intentionally expand on DEI commitments.

Q: How can I promote pay equity in my organization when my role isn’t in human resources or benefits and compensation?

“Stay curious and get involved,” says Mariko Blakely, senior vice president and relationship manager at PNC Bank. “Equitable pay practices are deeply embedded in diversity, equity and inclusion principles, so ask questions and be willing to serve as an ally, a mentor, or an active employee resource group participant.”

Hopefully as an employee you feel empowered to seek information from your manager or people operations department to learn if there are established compensation benchmarks, if equity has been achieved, and if it is monitored. If you are a people leader, ensure you have the training and language tools to explain how pay is determined, both systematically and from role to role.

Keep in mind that it is never the responsibility of the employee who has been historically underpaid to fix their compensation. While negotiation and leadership training can be immensely helpful, the onus and responsibility is on the employer.