In all the uncertainty surrounding the workplace in 2022 one thing is clear: there is no going back. We are entering a new era of business management where workplace equity, the belief that employees should be valued for who they are and what they contribute without bias, takes center stage. Its emergence is accelerated by a pandemic that’s brought new employment models centered on flexibility to the mainstream. The convergent factors driving the need for companies to embrace this new reality are: employee and investor alignment, a changing regulatory landscape, the acceleration of new technologies, and the consequences of being left behind.
For the first time, employees and investors want the same thing from their companies. Employees are leaving organizations that don’t share their values. Investors are demanding a comprehensive response while gearing up to make $1 trillion in ESG investments by 2030. Companies are reckoning with this dynamic: 96% now have pay equity on their radar. Today, over 98% of our clients analyze race in their pay analyses (a twofold increase in the past year) and over 65% conduct them more frequently.
Washington/Wall Street Respond
Second, Wall Street and Washington are actively responding to a broken status quo. The SEC is assessing ways to measure Human Capital Management disclosures while state legislatures like Rhode Island and Nevada pass pay equity laws. In short, the regulations around pay equity and DEI are undergoing a fundamental shift that moves from ideals to measurement.
These shifts are possible because rapid technological innovations measure workplace equity in real time. At Syndio, we can identify pay gaps in seconds, and are rolling out new tools to measure opportunity: how employees are promoted and where the breakdowns are that prevent companies from building diverse and dynamic teams.
The companies that fail to take advantage of these new systems will be left behind. They face massive fines, employee and investor pressure or flight, public relations nightmares, and a losing hand in the war for talent.
Meet the Moment
For the companies that meet this moment and measure workplace equity, enduring success awaits. Already, Syndio customers have returned millions to their employees, significantly increased their retention rates, and report happier, more productive workplaces. And they are sharing these results with their Board and investors. At Syndio, we post salary ranges for all our open jobs not just because it’s the right thing to do, but because it’s how you stand out against a broken status quo.
In the workplace equity era, companies will no longer be able to simply say their employees are their most valuable assets. They’ll have to prove it – to employees, investors, regulators, and themselves.