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.
Avoid the high cost of inaction
The average increase in cost for every year a business waits, or fails, to close role to role gender gaps is $444,368.1
Build an employer reputation that attracts, engages, and retains top talent
58% of employees would consider switching jobs for more transparency. For Gen Z employees, that number jumps to 70%.2
Boost productivity and retention
Employees who work in a high fairness environment have 26% higher performance and a 27% lower chance of quitting.3
Employees who perceive a pay gap (regardless of if the pay gap actually exists) experience a 16% decrease in intent to stay at their company.2
Improve business performance
Companies that disclose they've conducted a pay equity analysis report nearly 8% higher mean five-year Return-on-Equity.4
Companies that disclose representation by job group tend to see higher returns.5
Diverse companies are more likely to financially outperform their peers.6
"The equity experience in your company is one of the most important parts of your performance in the market."
Global HR industry analyst7
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
92% of leaders in a 2022 survey think that ESG issues will affect corporate reputations in the next 12 months.10
Simplify compliance with (and future-proof against) expanding legislation, regulations, and reporting requirements
From September 2020 to September 2021, the share of companies disclosing demographic data (such as an EEO-1 Report) has more than doubled, from 4% to 11%.11
Mitigate legal risk
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.12
Recent pay equity and gender discrimination settlements have landed at $100 million13, $118 million14, and $175 million.15
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.
Ready to make an impact with workplace equity?
- 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.
- Inc., "New Report: Pay Transparency May Be the Key to Keeping Your Employees in 2021," February 2021.
- Gartner, Gartner HR Research Reveals 82% of Employees Report Working Environment Lacks Fairness, November 8, 2021.
- JUST Capital, "JUST Jobs Analysis: Why Pay Equity Is Still Critically Important in the Time of Coronavirus."
- JUST Capital, "Companies Disclosing the Highest Level of Workforce Diversity Data - EEO-1 REport - Saw Higher 2021 Returns," February 2021.
- McKinsey & Company, "Diversity wins: How inclusion matters," May 2020.
- Syndio, "What Really Works for Pay Equity? 6 Soundbites from Josh Bersin and Kathi Enderes," May 2022.
- CFA Institute, "Future of Sustainability in Investment Management: From Ideas to Reality," 2020.
- Grow by Acorns + CNBC, "99% of millennial investors say it's important to consider social responsibility when making decisions: Survey," November 2021.
- Signal AI, "[Report] The State of Corporate Reputation and Business Performance," 2022.
- JUST Capital, "Just Over Half of the Largest U.S. Companies Share Workforce Diversity Data as Calls for Transparency from Investors and Regulators Grow," 2022.
- Strategy People Culture, "The Impact of Harassment and Discrimination in Corporate America's Policies," October 2021.
- CNN, "Riot Games agrees to pay $100 million settlement in gender discrimination lawsuit," December 2021.
- Bloomberg, "Google Agrees to Pay $118 Million to Settle Pay Equity Suit," June 2022.
- CNBC, "Signet Jewelers reaches $175 million settlement of gender bias lawsuit," June 2022.