[US and UK] 1 in 3 companies have no pay equity strategy

According to new research, despite an increasing number of companies claiming to be taking steps towards pay equity and transparency, around 34 per cent of US and UK employers still do not have a pay equity strategy in place, HR Dive reports.

The report - from compensation platform beqom - revealed that more than half of the compensation decision-makers surveyed said they doubt their company complies with global standards. While 45 per cent reportedly said their approach to pay equity is harming their ability to attract talent.

In a statement, Tanya Jansen - co-founder and CMO of beqom - said, “Our survey shows employers grapple with addressing wage discrepancies and promoting fair compensation. They understand the urgency in confronting wage gaps but find themselves navigating a complex web of regulatory requirements and stakeholder demands.

“However, there is clear evidence of progress and enthusiasm around integrating pay equity into compensation strategies - employers just need help,” she said. “They need more guidance to understand pay equity standards and how to correctly implement compensation strategies that minimize compliance risk.”

The survey of 875 U.S. and U.K. salary decision-makers showed that only 2 in 5 were aware of global pay equity standards. They are, however, trying to make progress; 70 per cent said they had analysed their compensation strategies and shared gender pay gap statistics with employees and/or external stakeholders. 

In addition, a majority of the companies had uncovered wage discrimination, promotion disparities, below-market salary ranges and pay compression.

Most companies had reportedly responded by taking steps to close existing gaps and foster transparency. Those steps included listing salary ranges within new job descriptions (81 per cent), increasing salaries due to inflation and economic standard-of-living costs (68 per cent) and implementing a process for continuous feedback (67 per cent).

Survey respondents also stated that their companies were increasing pay to correct pay gaps and salary inconsistencies, providing a clear structure for bonuses and performance review processes, making executive pay visible and disclosing the pay ratio for executive officers and median employees.

A Payscale report demonstrated that pay structures have started to change to meet equity and transparency goals. However, despite organisations becoming more transparent, the report found that they tend to disclose data to individual employees and to do so only when required.

Source: HR Dive

(Links and quotes via original reporting)

According to new research, despite an increasing number of companies claiming to be taking steps towards pay equity and transparency, around 34 per cent of US and UK employers still do not have a pay equity strategy in place, HR Dive reports.

The report - from compensation platform beqom - revealed that more than half of the compensation decision-makers surveyed said they doubt their company complies with global standards. While 45 per cent reportedly said their approach to pay equity is harming their ability to attract talent.

In a statement, Tanya Jansen - co-founder and CMO of beqom - said, “Our survey shows employers grapple with addressing wage discrepancies and promoting fair compensation. They understand the urgency in confronting wage gaps but find themselves navigating a complex web of regulatory requirements and stakeholder demands.

“However, there is clear evidence of progress and enthusiasm around integrating pay equity into compensation strategies - employers just need help,” she said. “They need more guidance to understand pay equity standards and how to correctly implement compensation strategies that minimize compliance risk.”

The survey of 875 U.S. and U.K. salary decision-makers showed that only 2 in 5 were aware of global pay equity standards. They are, however, trying to make progress; 70 per cent said they had analysed their compensation strategies and shared gender pay gap statistics with employees and/or external stakeholders. 

In addition, a majority of the companies had uncovered wage discrimination, promotion disparities, below-market salary ranges and pay compression.

Most companies had reportedly responded by taking steps to close existing gaps and foster transparency. Those steps included listing salary ranges within new job descriptions (81 per cent), increasing salaries due to inflation and economic standard-of-living costs (68 per cent) and implementing a process for continuous feedback (67 per cent).

Survey respondents also stated that their companies were increasing pay to correct pay gaps and salary inconsistencies, providing a clear structure for bonuses and performance review processes, making executive pay visible and disclosing the pay ratio for executive officers and median employees.

A Payscale report demonstrated that pay structures have started to change to meet equity and transparency goals. However, despite organisations becoming more transparent, the report found that they tend to disclose data to individual employees and to do so only when required.

Source: HR Dive

(Links and quotes via original reporting)