Both employers and employees benefit from equal pay programs. Not only are these guidelines required in most states, but they are also necessary to provide equal opportunity and fair compensation to employees of all kinds.
The wages that employees are paid directly correlates to their motivation and, perhaps most important today, creates a more competitive workplace that will attract the best and brightest talent to your company. This is why it is crucial to treat all of your employees fairly and equally.
What Do Equal Pay Programs Look Like?
Globally, the gender pay gap stands at 16%. This means that women earn an average of 84% less than what men earn. These discrepancies add up and have real-life consequences for women and their families who are stuck in poverty — especially in times of global crisis.
Equal pay means that all workers have the right to receive equal compensation for work of equal value. While the concept is straightforward, what equal pay actually entails and how it’s applied in practice has proven to be difficult. It has proven to be difficult to properly outline what equal pay for equal work means, and there have been some speed bumps in figuring out how to properly implement these types of policies.
A good example of what equal pay should look like is the recent bill passed in New Zealand regarding equal pay, the Equal Pay Amendment Bill. While the existing law guaranteed women and men would be paid equally for the same work, the new law makes sure that women and men are paid equally for work that’s different but has equal value.
In addition, it also ensures proper remuneration for the other aspects of income that are separate from wages but equally important. This includes compensation such as paid time off, vacation, sick leave, insurance packages, and more. For equal pay to be effective, it needs to include all of the aspects of a typical working wage that have been readily available to working men.
The Benefits of Equal Pay
When businesses offer equal pay, they create a more competitive workforce that can provide their business with a wide range of benefits. Pay systems that reward employees equally for the same amount of work:
- Demonstrate your organization’s values to employees
- Increase efficiency and motivation
- Attract top talent
- Align your company’s social responsibilities
Not only does it provide these benefits, but it also helps organizations to avoid costly penalties. If you do not offer proper equal pay measures, the legal claims that follow can be expensive ordeals.
Not only that, but a lack of equal pay measures can create an unmotivated workforce, a negative bias towards management, and overall lead to an unhealthy and lackluster workforce.
Why It Is Essential To Conduct an Equal Pay Audit
Apart from helping you to comply with important legal criteria, carrying out an equal pay audit or review can have plenty of other beneficial effects. For example, an audit could reveal important equality issues within your organization such as under-representation or job segregation that would otherwise remain unnoticed.
These imbalances within an organization can be hard to detect, which makes it important for leaders of organizations to be proactive and ensure their employees who are not well represented are being stood up for.
The Importance of Equal Pay
Equal pay is essential because every worker deserves to have a voice and be properly represented and protected. All modern organizations have the responsibility to ensure that all of their workers are valued and provided with tools and resources to feel secure. All workers deserve to be empowered with the ability to better defend their best interests.
While these facts remain true, the real burden lies within organizations. The social climate is demanding fair treatment of employees, and businesses that stick up for their underrepresented employees will be the ones who have the most effective and dedicated employees.
Speak With HR Search & Rescue About Fair Treatment
HR Search and Rescue is a professional consulting firm that serves both employers and employees. Their team takes pride in our ability to promote a safe and healthy work environment for employees, managers, HR directors, and executives.
Whether you are an employee dealing with microaggressions or a small business owner handling an employee investigation, you can trust HR Search & Rescue to develop the best possible solution that will yield the most favorable results.