Pay equity in the workplace continues to receive focus due to recent legislation and awareness. Driven by national movements like #MeToo and Black Lives Matter, California began requiring employers to file annual equal pay reports in March 2021, while Colorado’s pay transparency bill went into effect in January 2021. Pay equity is a key component of DEI strategy that will fuel a cultural transformation to eliminate workplace bias and improve hiring practices. After all, inclusion can only be achieved once employees feel fully valued and supported in their organization — and compensation is a key factor.
When salaries are compared across industries, there is clear evidence that the pay gap indicates systemic under-valuation of gender and certain races. In fact, women earned only 84% of what men earned in 2020, according to a Pew Research Center analysis. Since this gap is often based on assumptions about the relative value of different roles and on initial negotiation of salary, it’s important to have measurable indicators of fairness in order to keep leaders accountable for your DEI goals.
How to do it? The best way for organizations to ensure that they’re paying employees fairly is through a pay equity assessment. An objective analysis of your pay compensation structures will give you a better understanding of where pay inequities exist and how to take action to address them. Then, creating a dashboard to continually monitor your performance will help you better attract, retain, and engage top talent – who are more than ever choosing to work for companies that value employees and transparency.
Orange Grove Consulting’s new pay equity dashboard tool gives you an in-depth assessment of your company’s compensation structures from the perspective of race, gender, and level. The generated reports can be configured to the needs of your organization, and include an analysis of the overall demographics of your employees as well as a breakdown by specific groups. With these key indicators, you’ll be able to effectively track your current performance and monitor ongoing progress towards your DEI goals.
An effective pay equity strategy will increase bottom-line business benefits, and additionally will help you build faith in your employees and transparency in your workplace. It’s time to finally demonstrate your organization’s commitment to DEI in 2022 by closing pay gaps.
To learn more about our new pay equity dashboard tool, contact us for more information.