As with other areas of business, progressive leaders are looking to harness the converging technologies of the 4IR to help drive the cultural change required to eradicate bias. These leaders recognize that a strong record on equality and inclusion converts to increased employee engagement, improved customer orientation, more innovative decision making and ultimately, enhanced business performance.
One key area of cultural change that is at the top of HR’s agenda is Pay Equity, which has become a compelling business issue due to emerging legislation and increased exposure to potential litigation as well as the realization that it can impact the ability to attract and retain high quality talent. Increasingly organizations are looking to perform an internal pay audit to understand whether pay gaps exist. This involves examining your employee data for evidence of a pay gaps between employees of different protected categories.
The simplest way to measure pay gaps is to look at the average pay differences. So for example to measure the gender pay gap you compare the average pay for men as a group, compared to average pay for women. This is the definition behind the most commonly cited statistics we see on gender pay gaps today. But a simple comparison of pay gaps on an aggregate basis doesn’t take into account there may be valid reasons why average pay for men differs from women as a group, such as location, job role or seniority. For this reason, we call this the “unadjusted” or “raw” pay gap.
Another way to look at pay gaps is to compare similarly situated employees and consider what factors can influence pay. These compensable factors may include differences in education, tenure, type of job role, location, and performance. They will differ from company to company and relate to your compensation philosophies and principals. The aim is to make a fair comparison between similar workers and to see what pay gap remains after considering these legitimate factors. This is what we call the “adjusted” gender pay gap.
By looking at both your company’s “unadjusted” and “adjusted” pay gaps, you’ll gain a robust view of what’s causing pay differences, which will help you solve any problems you find in your talent pipeline and make recommendations on ways to lower barriers in recruitment, hiring, pay and promotion before they arise as a broader organisational concern.
Curo Compensation Limited (Curo), an industry leader in total compensation management technology, has launched a new solution, Curo Pay Equity Tracker (CuroPET). Designed to support the needs of HR and total reward professionals, the self-service and fully configurable solution provides detailed organizational insights based on global pay equity analytics, highlighting areas of risk at a country, market and job level.
Our goal is to provide HR practitioners with a user intuitive SaaS solution to perform their own internal pay audit, without the need to rely on expensive outside consultants and with limited support from technical data science staff. Ultimately using technology to democratize the process so all companies can easily study pay equity and pay gaps and progress towards a better and more equitable and inclusive workplace for all.
To find out more visit https://www.curocomp.com/software/curo-pet/ or contact us at email@example.com