Pay Equity Regulations Prompt Action and Close the Gap

Challenge:Our client was interested in achieving and maintaining gender pay equity among their workforce.  

Solution Deployed:We know that base pay often is a root cause of total compensation pay gaps, so we began by reviewing current pay practices and organizational structures. We then gathered all relevant data and were able to complete a thorough analysis that included looking beyond performance ratings:  at other factors that are less prone to bias (i.e., tenure) 

When we reviewed uncontrolled gender pay gap data, comparing all women to all men, we found that women were earning 76¢ for every $1 earned by men. When we reviewed controlled data, comparing women to men in similar jobs in the same locationswe found that women were earning 97¢ for every $1 earned by men.  

We identified and flagged pay gaps and outliers among their employees and presented reports, analysis, and recommendations for remediation solutionsWe then worked with our client to identify modifications to their pay practices, which lead to the development of pay ranges and a pay matrix based on performance, tenure with the company and overall career experience  three factors that were important to our client’s values and culture. Remediation recommendations were based on those three factors.  

A strategic communication plan was completed to share information with all employees about the process, reasons, and resultsThe transparencyfocused communications plan included sharing the information at an all-hands meeting. 

Business Value DeliveredBy providing relevant and practical remediation recommendations, our client was able to eliminate pay equity issues and proudly say that female employees earn $1 for every $1 male employees earn. Impacted employees were quickly notified, and base salary increases were effective within a few days. Employees expressed their appreciation of the transparency and that this had reinforced their already positive culture and made them proud to work for a company who had “closed the gap.” 

Client Industry: Technology 

Project Type:Pay Gap Analysis, Change Management, Strategic Communication 

Business Structure: For-Profit, Privately Held