Fixing Compensation Gaps: Realistic Approaches That Work

How to solve disparities with transparency, strategy, and realism

Internal pay disparities do not always stem from malice, but they do cause damage. Even the most well-intentioned organizations can find themselves in difficult territory when long-term employees realize their compensation no longer reflects market value or does not match what newer hires are paid. This unfairness is not just an HR issue but a trust and compliance issue.

As an HR Expert, currently a consultant for FIFA (Fédération Internationale de Football Association) in preparation for the 2026 World Cup in the U.S., let us advise bluntly, “People don’t work for charity. They work for a salary, benefits, and security to make a living.” And yet, too many employers still skip basic transparency, like listing pay in job descriptions. While it is not legally required in many states, it should be common sense for a culture of honesty and fairness. Wage and hour laws are a baseline, and compliance is non-negotiable, but building trust starts earlier, with clarity around compensation before someone even applies.

Realistically, recalibrating pay structures is not always a sweeping overhaul. It often starts with an audit. Many organizations still do not maintain a transparent compensation matrix. Decisions are left to discretion, bias, or “negotiation”. None of these is inherently fair. A pay audit for a U.S.-based tech firm uncovered a troubling pattern: most of the long-lasting women on the team were earning noticeably less than the men hired more recently for similar roles. It was not the result of intentional bias but rather a byproduct of outdated systems and a lack of salary adjustments. Still, the result was unjust. The organization took accountability, adjusted salaries, and created a review timeline for future recalibrations.

For many HR leaders, cost becomes the sticking point. Budget constraints are real. But fairness does not require perfection overnight. A phased strategy with a transparent internal communication plan can go a long way. It builds trust and signals intent. It is okay to admit the system is not perfect if you can show improvement.

With new pay transparency laws taking effect in California, New York, and Colorado, the regulatory environment is changing fast. But compliance should never be the ceiling; it should be the floor. Job postings with pay ranges are just the beginning. What matters more is consistency, understanding how someone’s exact salary is determined, and how movement within a pay band is achieved. That requires structure, documentation, and manager training.

Managers are often uncomfortable discussing pay because they have not been given the tools or context. Employees expect clarity, and when managers dodge their questions, staff do not always leave right away, but they will start to disengage.

Managing pay disparities is not about endless spreadsheets or vague commitments. It is about looking closely, acknowledging what is not working, and being bold enough to fix it. Compensation is not just an operational function; it is a statement of values.

People know when they are being underpaid and undervalued. Once that belief settles in, it is hard to reverse it. Pay fairly, communicate clearly, and lead with transparency to comply with the law, and build a culture that does not depend on secrecy to stay afloat.

Sara Yahia is an HR Leader, DEI Advocate, and Author. For more information, visit Introverted HR Universe.