While only 28% of employers believe pay inequity exists within their organizations, over four in five (82%)1 have had to adjust pay as a result of a pay equity audit. And, while 93% of respondents endorsed using analytics for making pay decisions, just 38% actually did so.
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These new statistics are courtesy of XpertHR, which—together with its Gapsquare pay analytics platform—today released a comprehensive report on the state of pay equity in the U.S.
Click here to download XpertHR’s Pay Equity 2022 Report.
According to the report, another contributing factor is the very function responsible for leading diversity, equity and inclusion (DEI) efforts in most organizations. Fifty-three percent of companies that self-reported pay inequities said senior leadership has a high impact on driving pay disparities within their workforce.
“In today’s battle for talent—where the pressure from younger employees to exemplify transparency, inclusion and fairness is paramount—there’s never been a better time for business leaders to understand the picture of equity in their organizations,” said Zara Nanu, CEO and co-founder of Gapsquare.
In addition to investigating factors that contribute to pay inequities, XpertHR’s Pay Equity 2022 report shares data-centered, training-focused and communication-driven solutions for closing wage gaps. The solutions XpertHR and Gapsquare challenge companies to embrace include:
- Policy that supports pay equity and a diverse workforce, including regulations that require more organizations to analyze, understand and share their pay gaps.
- Transparency and accountability to earn trust and advance DEI efforts within the workplace, for instance, better industry benchmarking, publicly sharing DEI data and progress, and greater visibility into compensation, inclusion and other key DEI metrics.
- Flexibility in the name of human-focused business, such as leaning into the needs of workers who shoulder care burdens at home and providing flexible or work-from-home policies for any employee, regardless of gender.
While equal pay for equal work remains the law of the land, data from the U.S. Census Bureau’s 2019 American Community Survey show that women continue to earn just 82 cents for every dollar earned by men. The pay gap is even wider for women of color and in many occupations historically held by women.
“Factors such as occupational segregation, a lack of women in leadership and the ‘motherhood penalty,’ perpetuate pay inequities in the workplace,” Nanu explained. “Ultimately, don’t we all want to build a world where work is fair, where pay meets value and diverse talent thrives? Data is a powerful resource that employers can use to get them there.”
Taking the Complexity out of Pay Equity
That’s where XpertHR’s Gapsquare comes in. The software combines people, pay and DEI data to deliver analytics-based pay strategies that take the complexity out of pay equity, wage gaps and fair pay. It analyzes a myriad of employment data points—including gender, race, disability, sexual orientation, gender identity, age and more—then provides actionable insights for achieving fair compensation structures. Furthermore, it responds to changes in workforce data and aligns to corporate DEI efforts in real time.
“This allows HR, DEI, reward and compensation, and pay analytics teams the freedom to focus on performance and productivity, recruitment and retention, and building inclusive teams,” continued Nanu. “It’s a sustainable, holistic solution to the growing global pressure to lead as an employer in our diverse and socially conscious world.”
XpertHR’s Pay Equity 2022 Report was generated from a survey conducted Jan. 25-Feb. 11, 2022. The survey included responses from 322 US employers from various industries and workforce sizes. The total number of employees of responding organizations was 829,374. The survey addressed several topics, including drivers of pay inequity, measures used to ensure pay equity and their effectiveness, what function leads pay equity efforts, and more. A press preview of the report is available to the media upon request.
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