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How to Manage Pay Equity in the Workplace

It seems hard to manage pay equity in the workplace, but it is an essential part of each organization. According to the Equal Employment Opportunity Commission, each employee should have the same rights, no matter of origin, color, race, or sexual orientation. This body also regulates the use of these laws at the workplace, and it is important to consider that pay equity is a federal responsibility of each business owner.

how to manage pay equity at work

Many states are writing their own pay equity laws because the term has evolved over the years. In 1963, the federal Equal Pay Act prohibited sex-based discrimination, and since then, many other types of discrimination have been prohibited as well. The Equal Pay Act requires equal wages for both men and women, and this is applicable to those with the same skills, responsibilities, and efforts at work. 

Pay equity is an advantage 

In modern workplaces, pay equity is a real advantage. Thanks to social media, companies’ websites, and people’s experiences, we can now know what the salaries are for certain positions. Companies need to make sure that salaries are openly discussed and that there are no secrets about this subject. 

This transparent approach also attracts new employees to join the company that offers pay equity in the workplace. In this manner, the reputation of the company grows and everyone gets the same treatment. 

Improving pay equity is important 

We still face a gender pay gap in many companies. This could be a major issue for businesses that do not follow employment laws. These companies have a lower reputation, and it is not the desire of future candidates. 

It is important to improve pay equity, not just because of the rules and regulations. There are steps to make this process easier, and we present these steps below. 

Gather the necessary data 

You can gather data about each employee. Their roles, responsibilities, efforts, and wages are all important indicators of overall pay equity. If you discover a gender pay gap or other disparities in compensation, you should correct these errors and implement a more equitable pay system.

Consider your workforce

There must be certain roles in your company that are dominated by one gender. For example, if you have more women in the HR department, you should consider hiring more men, or vice versa. These people should have the same salaries, and there should be an unbiased approach to each employee. 

If your organization has many more men that are hired to perform manager roles, and many more women who are in administration, there will be a huge gap between the salaries. You should find a balance between the workforce and finding an ideal position for each man and woman in your organization. 

Consult a professional employer organization 

If you are not sure how to make the proper analysis in-house, you can consult a professional employer organization (PEO). This kind of organization will do the necessary audit and will make an analysis of the current situation in the workplace. 

If some situations are not good for the overall pay equity procedure, they will point these factors out and make a clear picture of what can be improved. 

Pay inequality is a very common issue in many organizations. However, these issues can be resolved with strong analysis and checking of each segment of employment in the workplace. Once all the factors are clear, you can start improving pay equity at work. 

This will have a significant impact on the overall satisfaction of the employees. They will be more willing to do their job properly when they know that they are equally paid for the job they do. 

Anna Verasai
Anna Versai is a Team Writer at The HR Digest; she covers topics related to Recruitment, Workplace Culture, Interview Tips, Employee Benefits, HR News and HR Leadership. She also writes for Technowize, providing her views on the Upcoming Technology, Product Reviews, and the latest apps and softwares.

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