SEATTLE, Oct. 30, 2023 /PRNewswire/ — In an era marked by heightened scrutiny around pay gaps, Syndio, the world’s leading workplace equity analytics platform, unveiled new research highlighting a key factor driving gaps: the lack of structured potential assessments. According to Syndio’s 2024 Workplace Equity Trends Report, organizations effectively fostering diverse teams at all levels are over twice as likely to incorporate potential ratings into their evaluations, a trend that sets them apart from less effective counterparts.
Based on survey responses from over 375 HR professionals, the report highlights how the absence of formal “potential reviews” sustains gender pay disparities. Recent research1 indicates that, on average, women receive higher performance ratings but lower potential ratings. This disparity translates to a 13 percent lower likelihood for women to be promoted compared to men, which keeps them ensnared in lower-tier positions within organizations, perpetuating the gender pay gap. To counter this bias, it’s critical for employers to formalize their assessment processes.
The Syndio report also emphasizes the importance of being proactive and preventative against inequities. Organizations that outpace the industry norm by conducting more workplace equity analyses and tracking a broader range of employee categories are 51 percent and 14 percent more likely to effectively build diverse teams, a hallmark of a strong business and company culture. Employing analytics to maintain fair starting pay and pay adjustments throughout merit cycles, rather than rectifying pay inequities retroactively, is an instrumental practice for these forward-thinking companies.
“The traditional methods of annual performance reviews and vague potential assessments hold organizations back from harnessing the true talent of their people. It’s time to fix the ‘broken rung’ once and for all,” said Syndio CEO, Maria Colacurcio. “The good news is that we understand the problems and the path forward is clear. Achieving lasting workplace equity hinges on employer’s commitment to measuring performance fairly by formalizing rating processes, reducing manager bias, and emphasizing succession planning. Given the recent Supreme Court decision, it is even more important for companies to utilize agnostic solutions that are both progressive and lawful. It’s one of the many reasons we built OppEQ.”
As part of Syndio’s workplace equity platform, companies can use OppEQ to instantly analyze hiring, promotions, performance scores, and retention rates by gender, race, and more to identify the root causes of opportunity and pay gaps – and create action plans for improvement.
According to Syndio’s report, organizations that analyze more moments in the employee lifecycle than average are 51 percent more likely to effectively build diverse teams at each level. Leveraging the right technology makes more frequent analyses across more categories realistic, rather than arduous.
To access the full Syndio 2024 Equity Trends report and learn more about OppEQ and Syndio’s workplace equity solutions, please visit https://synd.io/workplace-equity-trends-report/.
Syndio conducted its annual Workplace Equity Trends Survey to gauge trends, priorities, and sentiment around workplace equity initiatives. Syndio surveyed over 375 professionals and leaders primarily in HR and Total Rewards (with some respondents in DE&I, People Analytics, and company leadership). Respondents worked for companies primarily in North America, Europe, and/or Asia across a wide variety of industries.
Syndio provides technology and expert guidance that helps companies measure, achieve, and sustain all facets of workplace equity. Named to FORTUNE’s 2023 Change the World list, which recognizes companies for innovative business strategies that positively impact the world, Syndio partners with over 200 companies, including 10% of the Fortune 200 and 30% of Fortune’s Most Admired Companies, who rely on Syndio’s platform to close pay and opportunity gaps, mitigate legal risk, and turn DE&I goals into tangible results. Together, we are showing the world how to build resilient, open workplaces by ensuring every employee is valued based on who they are and what they contribute to their company’s success.