This article was last updated on November 15, 2021 to include new functionality.
Getting starting pay right — so it’s competitive and equitable — is harder than it sounds. Compensation teams, recruiters, hiring managers, HR business partners, and even candidates themselves are often part of the decision making process. And none of these stakeholders have clear visibility into what’s fair and equitable for new hires at the time of hire. This has grave consequences.
According to Gartner, pay gaps that can’t be explained by legitimate reasons like performance or experience average 7.4% across organizations. Closing these gaps costs hundreds of thousands or even millions of dollars annually for the average company — and letting pay issues crop up and grow throughout the year means companies are putting themselves at legal and reputational risk with the stakeholders that matter the most: employees, consumers, and investors.
Accepting defeat isn’t the answer. In their “Addressing Pay Equity” report, Gartner states that organizations need to shift their approach to “prevent the creation of pay gaps throughout the compensation life cycle rather than only assessing and correcting existing gaps.”
Prevent Pay Disparities by Embedding Fairness into Every Decision with Pay Finder
Pay Finder doesn’t simply tell your teams what salary to pay someone. Rather, it serves up insights and recommendations to each of the key decision makers at the time of hire — so they can see what’s both externally competitive and internally equitable. By embedding these insights into day-to-day decision making, companies can pay fairly from day one.
“Our priority is to be proactive to prevent pay inequities from occurring in the first place,” said Frank Stoos, Director of Executive Compensation for TE Connectivity, a global tech company with 80,000 employees. “Relying on market rates and human discretion to set starting pay is not enough; you need to have an understanding of what’s internally equitable. Syndio’s Pay Finder enhances our ability to see what’s competitive and fair from day one. It helps us to do the right thing for our employees, and it reduces or eliminates the need for remediation actions by maintaining fair and equitable pay.”
For companies who want to go from fixing pay inequity to preventing it, Pay Finder enables you to:
- Put fair pay insights into the hands of recruiters & HR business partners. Give your hiring teams the power to make better pay decisions with direct access to pre-approved “fair pay” ranges calculated for each candidate. Read more about our recent enhancements here.
- Easily review offers to ensure they’re competitive and equitable. See your internal (market-informed) pay ranges next to a “fair pay” range for every new hire (based on other employees doing similar work).
- Predict how offers will impact pay equity. This helps you make real-time adjustments that prevent pay disparities before they can arise.
- Determine real-time salary trends. See salaries for recent hires and all existing employees in a group doing similar work, so you can explore real-time pay trends and make more precise pay decisions.
Equitable compensation is important for your brand reputation every day, not just once a year. It’s also a core tenet of a well-run business, not a compliance exercise. Pay Finder gives you a simple path to transform your approach to pay equity, incorporating fairness into everyday business practices and pay decisions.
For leaders looking to live the values of your organization, and differentiate your brand, and lead the way in fair pay, learn more about Pay Finder here.