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The State of Pay Equity 2020: Advance your talent objectives by analyzing and addressing pay equity issues
FEB 2020
Employers leverage compensation plans to help attract, hire and retain the best workers. Compensation can also help organizations reach important goals such as employee engagement, higher productivity, healthier operations and full legal and regulatory compliance. By ensuring pay rates are equitable within their organizations, companies might advance those corporate goals. However, attaining that state of equity can be a challenge given historical pay gaps among gender, ethnic and other groups that were traditionally viewed as “minorities.” To help learn more about pay equity, HR.com’s HR Research Institute conducted this research study. We invite you to download and read the report and infographic today to learn how these outcomes and insights may apply to your organization, plus 9 key takeaways that you are able to apply right away.
HIGHLIGHTS FROM THE RESEARCH:
Only two-fifths of HR professionals indicate pay equity is good or excellent in their organizations. We asked participating HR professionals to rate their organization in the area of pay equity based on their perceptions. Just 9% indicate pay equity is excellent and about another third (31%) say it is good, totaling two-fifths (40%) of participants.
Three-fifths of participants (59%) say their organizations focus on pay equity to retain the right talent and another half (53%) say they do so to recruit the right talent. This lends support to the previous finding about how this issue potentially relates to CEOs' prioritization of recruitment and retention of top talent. This is part of a larger trend. Given recent low employment rates, employers are once again concerned about retaining their workers and winning the so-called war for talent.
Among firms that analyze, more than three-quarters look at comparable jobs among organizations that analyze and leverage data in an effort to increase pay equity, the majority (76%) look at pay among comparable jobs. Such data can potentially be gathered using external benchmarking data and internal data. Three-fifths compare pay within pay bands (60%). Pay comparisons are most useful when companies evaluate all the relevant variables that make a job different. It is possible that some data points may not provide true apples-to-apples comparisons, which can make them somewhat problematic to use. However, these data points can serve as a good guide. Just half of participants (51%) say they look at pay with clear pay-for-performance measures.
To learn more about The 2020 State of Pay Equity survey and to get strategic outcomes and 9 key takeaways from this exclusive HR.com Research Institute research, please read the complete report and infographic here:
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