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
of job seekers overall look at workforce diversity when evaluating an offer.2
of employees would consider switching jobs for more transparency. For Gen Z employees, that number jumps to 70%.2
Boost productivity, innovation, and retention
Employees who work in a high fairness environment have 26% higher performance and a 27% lower chance of quitting.4
Productivity increases by 1.2% when at least three women are on boards.2
Gender-diverse teams make better decisions 15% more than all-male teams.2
Innovation is 6 times higher at organizations with the most equal workplace cultures.2
Improve business performance
Companies that disclose they've conducted a pay equity analysis report nearly 8% higher mean five-year Return-on-Equity.5
Companies disclosing their EEO-1 reports saw higher returns than those that didn't, outperforming by 7.9% over the trailing one-year period ending in 2022.6
There is a 3% increase in revenue for every 1% increase in gender diversity.2
Teams that shift to even gender representation generate 41% more revenue.2
Global HR Industry Analyst1
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.11
Strengthen perception with investors
of investment professionals take environmental, social, and governance (ESG) factors into consideration in their investing.8
of millennial investors consider social responsibility in their investment decisions.9
Simplify compliance with (and future-proof against) expanding legislation, regulations, and reporting requirements
1 in 3 workers in the U.S. is subject to laws requiring some form of pay transparency. (Source: Syndio)
There are nearly 30 jurisdictions around the globe that already require companies to report on their gender pay gaps. With the recent passage of the EU Directive for Equal Pay and Transparency, the number of pay reporting obligations will soar to nearly 45 jurisdictions.10
The number of Russell 1000 companies that publicly disclose EEO-1 intersectional data grew from 3% in 2019 to 34% in 2022.6
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.
- Gartner’s EPIC Program — Call to Action to Achieve Gender Pay Equity, February 4, 2021. 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.
- 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.
- Syndio webinar, “How to Navigate the Complexities of Global Pay Reporting,” April 2023
- Strategy People Culture, "The Impact of Harassment and Discrimination in Corporate America's Policies," October 2021.