Achieving Pay Equity That Works

In today’s dynamic work environment, where job titles often mask vast differences in responsibilities and pay scales, the imperative for pay equity has never been more pressing.

The recently released book “Get Pay Right: How to Achieve Pay Equity That Works” (WALTHAM, Mass, SHRM; July 5,) by Salary.com CEO Kent Plunkett and employment attorney Heather Bussing, draws on over 25 years of experience at the forefront of the pay transparency movement and offers practical guidance on understanding and addressing pay equity issues within organizations.

The authors redefine pay equity as equal pay for comparable work that is internally equitable, externally competitive and transparently communicated. It isn’t just about being fair; it’s about making sure businesses thrive in an era where being transparent is key. Embracing pay equity not only fosters an inclusive workplace culture but also boosts engagement, performance and ROI, crucial for businesses eyeing global competitiveness.

But transparency doesn’t equate to disclosing everyone’s salaries. Plunkett founded Salary. com on the idea that every employee should be able to find out what they’re worth and use that info to negotiate their pay. As the company continues to lead the industry with innovations in compensation software, he is now providing HR professionals and business managers with a toolkit to achieve pay equity in our lifetime.

His steps to get started include:

• Tackling pay transparency at every level: 77% of employees don’t know how people are paid in their organization; employees who understand how they are paid (and why) are more engaged and work more effectively.
  
• Addressing unconscious biases in hiring: Only 42% of companies involve the chief diversity officer in talent acquisition decisions despite over 90% stating that reducing bias is a top priority.
  
• Matching retention efforts to recruiting efforts: Pay raises are typically larger when people change jobs than when they stay for annual cost-of-living adjustments. While job changes involve factors beyond pay, being competitive with market rates is crucial for retaining employees and is more cost-effective.
  
• Improving performance management: 47% of HR leaders do not know what skill gaps their current employees have.

“Tackling pay equity is no small undertaking for any organization,” said SHRM CHRO, Jim Link. “By adopting the multi-pronged approach Plunkett describes, companies will significantly increase the likelihood of achieving pay equity while improving the overall employee experience along the way.”

As the labor market combats the permanent decline of available workers and faces unprecedented challenges on the horizon, “Get Pay Right” serves as a timely roadmap for organizations to navigate the complexities of pay equity and build a culture of transparency and accountability.

Salary.com has been solving the complex human capital needs of global organizations for more than 20 years. The company leads the industry in compensation data, software and services. Over 30,000 organizations in 22 countries use Salary.com’s solutions to confidently hire and retain talent so they can better compete in a constantly changing landscape.

Salary.com provides more than 10 billion data points across more than 225 industries using our powerful, proprietary AI framework to get pay right. The company’s flagship product CompAnalyst empowers organizations with a suite of tools that simplifies hiring, eliminates compensation guesswork and increases retention. Employee trust depends on fair pay and Salary.com’s solutions to get pay right.

Bussing is a California employment attorney with over 30 years of experience providing sensible and strategic advice to employers. Her deep experience with business, humans, technology and work gives her a unique perspective focused on preventing and solving problems rather than fighting about them.