Companies show signs of working to address pay inequities

Pay inequities due to gender, race and more have long affected employees across Texas and the U.S. While the pay gap due to gender has narrowed slightly since the 1980s, it has made little progress over the past 15 years. According to the Pew Research Center, in just 2018, women made 85% of what men made.

However, SHRM reports that 60% of U.S. companies have committed themselves to addressing and resolving pay inequity issues. Moreover, the majority of employers have chosen to focus on pay inequity issues due to both gender and race, with some also analyzing other demographic factors that may contribute to pay equity issues.

Understanding the root causes of pay inequity issues

To combat pay inequity issues, companies can benefit from understanding the underlying causes of such issues. SHRM states that because organizations can grow accustomed to whoever retains positions of power or influence, they may begin to favor those who both look and act like those individuals for promotions. However, the responsibility falls on the employer to understand why certain employees may continuously be in higher-level positions.

Addressing pay equity issues

According to the 2019 Pay Equity Practices Survey of C-Suite and Reward Leaders, companies are split on their approach to address such issues. Most choose to focus on analyzing pay equity issues, considering remediation strategies or adjustments and identifying and addressing the root causes of such inequities.

Focusing on these issues can be productive and positive for employees. However, companies can also consider further steps to resolve pay inequity issues, including the following steps suggested by SHRM:

  • Conducting comprehensive audits. Analyze both pay inequities and pay gaps throughout the organization, as well as the root causes behind the numbers.
  • Analyzing job levels and positions. Address the structure of the company’s job levels to assess whether each is suitably valued.
  • Diagnosing problems across the organization. Identify potential issues across the organization, including biases or trends in promotions and more.
  • Identifying priorities for inclusion. Set clear priorities to address pay issues, like including more qualified female employees in leadership roles.
  • Using career development programs. Implement talent or career development programs to encourage career growth across the workplace.

Companies can also benefit from being more transparent when it comes to pay equity issues. Exercising transparency on compensation issues can foster a greater sense of trust, understanding and fairness among all employees.

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