Edgility’s compensation experts are fierce believers in pay equity. Over the years, the team has seen firsthand that its counterpart, pay inequity, not only takes a toll on employees but it often has detrimental consequences for companies as well. It sows seeds of distrust and skepticism among staff, undermining teamwork, collaboration, and organizational cohesion. When employees feel undervalued, it can lead to higher turnover rates and difficulties in attracting and retaining top talent, impeding company growth and innovation. Ultimately, if pay equity is not addressed, wage gaps pose substantial risks to both employees’ well-being and the overall health and prosperity of the organization. 

Navigating the intricate terrain of aligning an organization’s social justice values with its compensation programs is difficult, but taking deliberate steps toward pay equity can lead to a fairer and more equitable workplace. Equity in your organization cannot be achieved without developing a compensation program that actively addresses and mitigates wage gaps. Recognizing that historical and systemic biases can result in disparities, it’s imperative to conduct a thorough analysis of existing pay structures and identify areas where discrepancies might exist. By committing pay equity for comparable work, your organization can lay the foundation for a compensation system that genuinely reflects its commitment to social justice principles.

In their recent webinar, Edgility Associate Partner Ila Shah and Edgility Sr. Talent Equity Consultant Marissa McNeil discussed how leaders can address pay equityin their organizations. Both experts agree, eliminating wage gaps requires a comprehensive and ongoing effort from organizations, and taking action will help your employees know that you’re serious about equity. 

Here are a few steps leaders can take when getting started:

1. Evaluate Your Current System
   • Expert Advice: Hire a consultant to manage this huge process
2. Establish clear compensation guidelines & promote transparency
3. Set salary ranges & address inequities
4. Conduct regular pay equity audits to ensure your structure is being upheld

By taking these proactive steps, organizations can begin to move towards addressing wage gaps and cultivating a workplace where all employees are compensated fairly and equitably based on their skills, contributions, and responsibilities. To learn more about what you can do to address pay equity in your organization, watch Ila and Marissa’s webinar or reach out to us to learn how we can support you.