“More money won’t necessarily come the moment you demand it.”
Pay equity—compensating everyone who has the same role equally—makes business sense. Experts say organizations that manage pay equity well see more employee trust in leadership, greater employee engagement, lower turnover, and improved company performance. And yet, the pay gap persists.
How businesses can take action
Communicate your pay strategy. A lack of pay transparency could erode employee trust and goodwill.
Run a statistical analysis to identify if a pay gap exists. You need an objective view of your performance.
Identify the drivers for pay discrepancies in your organization. Where are the imbalances creeping in?
Make a plan to address your gaps, and effect change. Don’t be afraid to make a bold move. Nike recently raised the salaries of over 7,000 employees, 10% of its global workforce.
What if you’re not being paid fairly?
Ask about your company’s pay parity plans. Find out what (if anything) they’re doing to address the issue. Perhaps you’ll spur them into action.
Research your worth. Ask around with industry peers to discover the going rate for people in your position in your area.
Understand your organization’s approach to compensation. Perhaps they balance lower pay with more generous leave policies. It’s not just about the number on your pay check.
More money won’t necessarily come the moment you demand it. Play the long game but be prepared to move on if nothing changes.