- One-third (34%) of companies do not have a pay equity
strategy in place
- 3 in 4 (70%) have conducted a pay equity analysis and
uncovered wage disparities
- Just 2 in 5 are aware of global pay equity
standards
NYON, Switzerland, June 27,
2024 /PRNewswire/ -- As companies globally face
mounting pressure to achieve pay equity, both to comply with new
laws and attract and retain the best talent, closing the pay gap
has become an urgent priority.
Yet, at a time when fairness and equity are central to business
priorities, one in three (34%) companies today still do not have a
pay equity strategy in place, and over half (54%) doubt their
company complies with global standards. Nearly half (45%) admit
that their approach to pay equity is hurting their ability to
attract talent.
That's according to data from beqom's 2024 Pay Equity
Report that surveyed 875 salary and compensation
decision-makers across the U.S. and U.K. to compare how companies
are approaching pay equity.
"Our survey shows employers grapple with addressing wage
discrepancies and promoting fair compensation. They understand the
urgency in confronting wage gaps but find themselves navigating a
complex web of regulatory requirements and stakeholder demands,"
said Tanya Jansen, co-founder and
CMO, beqom. "However, there is clear evidence of progress and
enthusiasm around integrating pay equity into compensation
strategies – employers just need help. They need more guidance to
understand pay equity standards and how to correctly implement
compensation strategies that minimize compliance risk."
Findings show employers struggle with compliance complexities,
particularly at the global level with just 2 in 5 (41%) employers
claiming they are aware of global pay equity standards.
Despite their struggle to navigate compliance standards,
employers have made encouraging progress toward understanding pay
equity gaps and taking action. Nearly three-quarters (70%) of
employers say they have analyzed their compensation strategies and
shared existing gender pay gap statistics with employees and/or
external stakeholders.
However, strategies for dealing with pay equity and transparency
are mixed. While most employers are at least looking at pay equity,
at the same time they are discovering underlying problems. Three in
four companies (70%) have even conducted a pay equity analysis that
uncovered wage discrimination (64%), promotion disparities (57%),
below-market salary ranges (54%), pay compression (53%), gender pay
gaps (48%) and more.
In response to these findings, companies are taking positive
steps to close existing gaps and foster transparency,
including:
- Listing salary ranges within new job descriptions (81%)
- Increasing salaries due to inflation and economic standard of
living costs (68%)
- Implementing a process for continuous feedback (67%)
- Increasing pay to correct existing pay gaps and salary
inconsistencies (65%)
- Providing clear structure for bonuses and performance review
processes (65%)
- Increasing salaries based on performance (65%)
- Implementing company-wide performance review processes
(62%)
- Offering more resources to help employees better understand
their total compensation (61%)
- Making executive pay visible/public knowledge (47%)
- Disclosing the pay ratio for executive officers and median
employees (29%)
"Employers are making meaningful progress and taking action.
However, it's clear some of these well-intended actions need to be
re-examined as nearly half (45%) of employers say their approach to
pay equity is hurting their ability to attract talent," said
Jansen. "Pay equity is a complex problem that HR leaders often bear
the brunt of addressing, but it cannot be solved without the help
of technology. We want to help employers by providing a solution
that embeds pay equity into decision-making across the organization
and simplifies the process of addressing pay equity issues in a
sustainable and compliant way. We have an opportunity to support
fair pay practices across the globe and we remain committed to
helping employers create innovative compensation strategies that
are built for the future."
To read the complete report visit, [https://hubs.li/Q02CNc5K0].
For more information about beqom, visit www.beqom.com.
Methodology
The survey was conducted by beqom in February and March 2024. The goal was to comprehensively
examine pay equity through an online survey directed to salary and
compensation decision-makers across the U.S. and U.K. The results
reflect answers from 875 total respondents (U.S. = 597, U.K. = 278)
working in the Automotive, Finance & Insurance, Healthcare,
Hospitality/Food & Beverage, Retail, and Technology
industries.
About beqom
beqom is a purpose-built compensation platform that intuitively
gives employers the power to realize comp's full potential from end
to end, every day. We help the world's leading enterprises leverage
their talent through complete, equitable, and transparent
performance and rewards.
With unified data, complete pay management solutions, and
AI-enabled pay intelligence, beqom enables companies to comply with
regulatory requirements, optimize compensation decisions, and
achieve better business results.
MEDIA CONTACT
SHIFT Beqom, beqom@shiftcomm.com
Beqom
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SOURCE beqom