Today’s Tip Ensure You’re Paying Employees FairlyAs a leader, one of the most important questions you can — and should — ask yourself is: “Am I paying my employees fairly?” To answer this question, you may need to conduct a pay equity audit (PEA). This means comparing the pay of employees doing “like for like” work (accounting for reasonable differentials, such as work experience, credentials, and job performance), and investigating the causes of any pay differences that cannot be justified. If your organization is small (50+ employees), you may delegate this audit to HR. Or, if your organization is large (500+ employees), it may be a better practice to hire a consulting firm that specializes in pay and rewards. According to a 2019 study, most companies find that up to 5% of employees are eligible for an increase. Addressing pay inequity in your organization isn’t just a moral imperative; it’s crucial for your competitiveness, shareholder expectations, and legal compliance.This tip is adapted from “How to Identify — and Fix — Pay Inequality at Your Company,” by Amii Barnard-Bahn

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s