The gender pay gap has become a contentious issue in recent years. While some companies have modernized and pay their female employees the same as their male counterparts, others continue to maintain the status quo. Below are some of the advantages you’ll gain by equalizing pay for your employees.
It Will Strengthen Your Brand
A company that makes known its intention to equalize pay between male and female employees will boost the appeal of their brand. You reveal to the market and the world that you prize diversity and you will benefit through increased sales and access to a more talented pool of workers.
Greater Engagement From Employees
Many employees, both male and female, consider equalized pay an issue which is connected to their personal values. Research has shown that over 90 percent of workers believe that both genders should receive the same pay, and over 50 percent of men and more than 80 percent of women have stated that they would not work for an organization that did not offer equalized pay. Given the fact that businesses are in competition with each other to recruit the best and brightest workers, those that choose to maintain unequal pay put themselves at a major disadvantage.
You Will Remain In Compliance With The Law
Numerous laws have been passed to equalize pay between men and women. One of the most prominent of these is EPA, or the Equal Pay Act, which states that employees of both genders must be paid equally. Accordingly to this law, it is the responsibility of the job, rather than the title, which determines if payments are equal. In addition to the EPA, which is a federal law, a number of states such as Massachusetts, California and Maryland have passed their own equal pay laws.
Employers that choose to ignore these regulations put themselves at risk of being sued, which would significantly drive up their compliance costs. The best way to avoid this is to handle the issue in a proactive manner.
How Pay Can Be Equalized
It will first be necessary to have sufficient data capability in order to determine where your company currently stands in terms of pay equality. Having systems in place that can detect pay gaps throughout the organization will help you get rid of them. HCM platforms are highly effective, as they allow for a process which is data driven. Most important of all, the leadership must support the initiative completely and then allocate the payroll management resources which are needed to make it into a reality.
Equalized pay must be completely integrated into the organizational pipeline. Accelerated development or leadership programs could be offered for female workers, and their progress could be monitored and any pay gaps can be closed as they are identified. Understanding how and why the pay gap should be closed is the key to greater profitability and a workforce which is stronger, more diversified and which has the talent necessary to compete in today’s marketplace.