February 22, 2022
Pay Equity Analysis Increasingly a Company Initiative
Compensation is still a big wrench in the employee retention toolkit – and we’ve previously blogged about companies projecting workforce base salary increases given the context of high inflation and labor shortages. With the backdrop of shareholders increasingly pushing for gender and racial pay equity audits, companies may want to plan for a pay equity audit so those planned base salary increases don’t inadvertently widen unequal pay disparities.
Payscale recently released its 2022 Compensation Best Practices Report (download required), which collected responses from 5,578 respondents between November 2021 to January 2022 – and here’s what they’re saying about pay equity initiatives: “Two thirds of respondents reported that pay equity is a planned or current initiative at their organization. This is a 20 percent increase compared to 2021. As in previous years, we also see a clear difference in commitment to pay equity analysis between top performing organizations (67 percent) and non-top performing ones (58 percent).”
As always, you can check out our “Internal Pay Equity” Practice Area on CompensationStandards.com for best practices on conducting pay equity audits.
– Emily Sacks-Wilner