The Business Case for Workplace Equity

Workplace equity success doesn't happen overnight — it's a journey of progress over time that requires top-down commitment, ongoing focus, proactive monitoring, and transparent communication. Is the investment worthwhile? It turns out that taking action to achieve workplace equity is not only the right thing to do, it also provides proven value to companies and their stakeholders in the following ways.

Should you outsource or insource pay equity?

Avoid the high cost of inaction

$439K

The average cost to correct pay gaps increases by $439,000 each year that an organization fails to take action. 1

Build an employer reputation that attracts, engages, and retains top talent

67%

of job seekers overall look at workforce diversity when evaluating an offer.2

58%

of employees would consider switching jobs for more transparency. For Gen Z employees, that number jumps to 70%.2

Boost productivity, innovation, and retention

5 key requirements of the EU Pay Transparency Directive

Employees who work in a high fairness environment have 26% higher performance and a 27% lower chance of quitting.4

Understanding the EU Pay Transparency Directive threshold requirements

Productivity increases by 1.2% when at least three women are on boards.2

+15% teal illustrated bar graph

Gender-diverse teams make better decisions 15% more than all-male teams.2

Does your pay equity plan in the EU include collecting more employee data?

Innovation is 6 times higher at organizations with the most equal workplace cultures.2

Improve business performance

Looking under the hood of pay gaps: “We’re going to see some rust”

Companies that disclose they've conducted a pay equity analysis report nearly 8% higher mean five-year Return-on-Equity.5

Board diversity is a strategic opportunity

Companies disclosing their EEO-1 reports saw higher returns than those that didn't, outperforming by 7.9% over the trailing one-year period ending in 2022.6

The ‘S’ in ESG might be a squishy topic — but the results in $$$ aren’t

There is a 3% increase in revenue for every 1% increase in gender diversity.2

Human capital and performance are linked

Teams that shift to even gender representation generate 41% more revenue.2

Get ahead of workplace equity disclosures NOW to own your narrative

The equity experience in your company is one of the most important parts of your performance in the market.

Josh Bersin Logo (1)

Josh Bersin
Global HR Industry Analyst 7

Mitigate legal risk

$64B

The estimated annual cost of losing and replacing more than two million American workers who leave their places of employment due to unfairness, discrimination, or harassment is $64 billion.11

Strengthen perception with investors

85%

of investment professionals take environmental, social, and governance (ESG) factors into consideration in their investing.8

99%

of millennial investors consider social responsibility in their investment decisions.9

Simplify compliance with (and future-proof against) expanding legislation, regulations, and reporting requirements

1 in 3 workers in the U.S. is subject to laws requiring some form of pay transparency. (Source: Syndio)

There are nearly 30 jurisdictions around the globe that already require companies to report on their gender pay gaps. With the recent passage of the EU Directive for Equal Pay and Transparency,  the number of pay reporting obligations will soar to nearly 45 jurisdictions.10

The number of Russell 1000 companies that publicly disclose EEO-1 intersectional data grew from 3% in 2019 to 34% in 2022.6

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How pay transparency impacts compensation comms
There has been a clear trend of global cross-pollination of pay equity laws in recent years.

Wondering where to start with workplace equity?

Syndio's Workplace Equity Guide offers strategies to help understand, measure, and improve all aspects of workplace equity. We detail a step-by-step approach you can use to define success using data and insights, prioritize your biggest areas of opportunity, and make incremental progress on realistic goals.

Read now to find out how investing in workplace equity today can drive sustainable outcomes for your business tomorrow.

Get the guide >

Ready to make an impact with workplace equity?

Sources

  1. Gartner, Addressing Pay Equity, Total Rewards Research Team, March 14, 2022. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
  2. Gartner’s EPIC Program — Call to Action to Achieve Gender Pay Equity,  February 4, 2021. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
  3. N/A
  4. Gartner, Gartner HR Research Reveals 82% of Employees Report Working Environment Lacks Fairness, November 8, 2021.
  5. JUST Capital, "JUST Jobs Analysis: Why Pay Equity Is Still Critically Important in the Time of Coronavirus." March 2020.
  1. JUST Capital, "Companies Disclosing the Highest Level of Workforce Diversity Data - EEO-1 REport - Saw Higher 2021 Returns," February 2021.
  2. Syndio, "What Really Works for Pay Equity? 6 Soundbites from Josh Bersin and Kathi Enderes," May 2022.
  3. CFA Institute, "Future of Sustainability in Investment Management: From Ideas to Reality," November 30, 2020.
  4. Allianz Life study in Insurance News Net, "Interest In Socially Responsible Investing Soars To New High," October 20, 2021.
  5. Syndio webinar, “How to Navigate the Complexities of Global Pay Reporting,” April 2023.
  6. Center for American Progress, "The Costly Business of Discrimination," March 22, 2012.

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