Pay equity is top of mind for most business leaders today. Investors are asking about it. Employees are demanding it. And new legislation is making it harder than ever to avoid compliance issues.
But how do you know you’re getting pay equity right? What are leading organizations doing to stay ahead of the curve on pay equity? Here are three pay equity trends to start following right now.
1. Share your company’s progress on pay equity
In the past, most companies were afraid to talk about pay equity. They preferred to analyze and resolve issues under lock and key or, worse, do nothing at all.
Today, however, there’s a new trend: pay transparency. Pay transparency means sharing not only how you pay, but whether or not it’s equitable across different groups and the actions you’re taking to resolve issues.
Despite beliefs to the contrary, transparency can transform pay equity from a potential liability into a brand advantage. As Salesforce CEO Marc Benioff wrote in his book Trailblazer: The Power of Business as the Greatest Platform for Change:
“Equalizing pay… has already begun to pay off in incalculable ways, and its benefits will continue to accrue for years… Already, our commitment to equality has helped land us the number one spot on Fortune’s list of best companies to work for, as well as the top spot on People magazine’s list of “Companies That Care” two years in a row. And it has contributed to our ability to attract the very best and brightest talent in the country.”
Salesforce doesn’t claim pay equity perfection. In fact, the company publishes its annual pay gaps and remediation spend in a public report. It’s their transparency that boosts their brand.
2. Analyze pay based on gender and race—not just gender
Before last year, fewer than half of Syndio customers included race in their pay equity analysis. Today—in 2021—98% of our customers analyze race, in addition to gender. And our customers are increasingly looking at the intersectionality of the two.
We predict that over time organizations will begin to analyze pay based on additional demographics such as age, sexual orientation, or veteran status, especially as employees share more personal information and pay equity software makes it possible to uncover issues with a few clicks of a button.
A related trend is that leading companies are starting to analyze additional forms of compensation , such as bonuses and stock. As employees start to ask about the full scope of compensation beyond pay, companies proactively addressing this will be in a stronger position to attract and retain the best talent.
3. Go beyond fixing pay disparities—prevent them
“Most companies understand the value of looking at important business metrics in real time, and pay equity should be no exception,” writes Lauren Jackman, Director of Diversity, Inclusion and Belonging at Medallia.
Historically, companies had no choice but to wait until pay disparities formed before they could identify and correct them. Today, modern pay equity software offers a brand new approach. Pay Equity Platforms provide an always-on view of where you stand on pay equity, as well as real-time insights that guide pay decisions. These “fair pay guardrails” help sustain pay equity in the long term and stop issues before they start.
As the world around us changes and evolves, getting ahead of pay equity trends is essential to stay in compliance, build a stronger employer brand, and lead the way in fair pay.
We’d love to show you how Syndio can help you attain—and sustain—pay equity. Request a demo.