Designing and auditing fair pay practices are steps organizations everywhere can take to create more equitable workplaces. The gender pay gap is a well-documented, well-researched, and persistent problem. The systemic underpayment of women chips away at fairness and equality and may have a real economic impact.
To set and check for fair pay practices, organizations should consider these actions:
- Set a compensation philosophy. Your philosophy guides how you award compensation.
- Structure compensation processes and pay for the role. Structure provides a framework for compensation decisions, such as paying for the role and thereby supporting equal pay for equal work.
- Run a pay equity analysis. Once the two pieces above are in place, check to make sure the system is working as intended by conducting regular and rigorous analyses.