Over the past year, you’ve probably heard a lot about the gender pay gap in the news. The topic has dominated headlines and was a point of discussion at the World Economic Forum. Additionally, increased state and federal regulations have brought this issue to the forefront of CEO’s and Chief Human Resources Officer’s minds.
Employers need to focus on assessing current compliance with the laws in place and on establishing a framework to maintain compliance with state and federal equal pay standards as they evolve. Currently, only two states—Alabama and Mississippi—have no state pay equity or sex-based employment discrimination regulations. A handful of states have particularly robust laws above federal legislation governing equal pay, making compliance initiatives even more important and more complex for multi-state organizations. For example:
Most companies know that paying workers fairly is necessary for legal and ethical reasons. But fair pay can also be good for the bottom line. There is substantial evidence that good HR policies, such as pay equity, make for happier employees, which in turn make for more productive workforces and more successful companies. Further, workers who believe that they are paid fairly are more likely to contribute their best effort to the job. Finally, pay equity has been shown to be a key driver of greater gender diversity in corporate leadership and numerous studies find that improved gender diversity in corporate leadership can lead to better long-term financial performance.
Using an integrated approach across compensation design, compliance, and people analytics, we help clients analyze their compensation and performance management programs, determine compliance with federal and state laws, and identify key pay disparity factors, while also linking them to critical employee and organizational outcomes.
Articulate business strategy and pay equity vision
Evaluate existing pay policies and practices
Determine key pay disparity factors
Use advanced analytics to assess pay disparity
Implement remediation and monitor impact
Manage pay equity processes on an ongoing basis
© 2016 - Mon Jul 16 05:33:15 EDT 2018 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.