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The Importance of Equal Pay in Your Company

In the name of equality, it would be wise that two people doing the same job and with the same experience would be paid the same. Promoting equality benefits your company because it is the right thing to do and potential employees and clients like to know that you’re conscious of these issues. Therefore, there is a necessity to have pay equality in any company, and here are a few steps that can be taken in order to achieve equal pay within your business.

 

Conduct an analysis

Like every imbalance in the world, it cannot be rectified unless a thorough analysis is done to discover exactly where the issue is. It is important to look at salary data through the eyes of certain categories like location, education, and tenure. Depending on what is found in the numbers, then steps can be taken to fix the issue, assuming everything is quite similar and there’s not a clear indication of why a pay gap would occur. By looking for patterns, it helps discover what particular attributes of qualities may be currently overlooked.

 

Pledge a commitment

Let people know the company is dedicated to doing what’s right. Make it clear to your employees that you’re dedicated to pay equality and you want them to speak up about situations they feel are unfair or if they think something has been overlooked. Being public about doing what is right can help attract great employees, business, and simply holds you accountable for the pledge.

 

Introduce pay scales

While you should leave room for negotiation, introducing pay scales provides a general rule of thumb to follow when determining salaries. A pay scale helps avoid huge discrepancies in pay across a similar position and it also helps your business be more transparent about how pay is handled at the company.

 

Revise performance reviews

Make sure your performance reviews are an accurate and fair way to evaluate an employee. Ensure there’s consistency and provide adequate training to the managers who are leading the performance reviews. Be clear about what you expect from these reviews and make sure everyone knows they can approach you with any questions they have. It can also help to be transparent with employees about what reviews consist of beforehand, so they aren’t surprised or confused about the process.

 

Start a conversation

Make sure to create a public space where people can have an open discussion about these topics. It could be a comment box or an interoffice form or server where people can post their thoughts anonymously enough so that the company knows what they are doing wrong or right and the employee won’t be afraid their careers could be impacted by what’s being said. Also, make sure that people feel comfortable speaking with your HR department if they feel something is handled incorrectly.

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