Compensation practices that ensure fair pay for employees can lead to remarkable outcomes:
What is Pay Equity?
Here, pay equity is defined as the fairness of compensation paid by employers to employees – both individuals and groups of employees. We’re not reviewing merit-based systems in this series or focusing on disparities in pay for any particular group (women, people of color, younger workers). Our goal is to provide nuts and bolts guidance that helps you identify and address pay inequity at the organizational level.
The Society for Human Resource Management (SHRM) says, “Fairness in the workplace is a strategic priority for organizations.” We completely agree. For a comprehensive review of this set of issues and some legal background on pay equity, see their Managing Pay Equity Toolkit.
Pay equity has been achieved when an organization’s pay scale reflects consistent wages across positions, departments and classes, and when it is tied to a current, valid wage comparability study.
Key Steps for Organizations
Note: Changing a pay scale can have a significant impact on finances and operations, and may require months or years to fully implement, depending on the organization’s available resources and changes to be made.
Success is achieved when leadership commits enough resources (time, attention and money) to the process.
For complex projects, it helps to outline discrete, achievable steps:
Confession: There are 7 key steps above, but the entire process required for an organization to analyze pay and total compensation, discuss its evolution, and achieve pay equity is comprised of about 35-40 steps.
If you know this work, you’ll know that’s about right.
Thanks for reading! Please leave any feedback or comments below.
Check back next week – we’ll talk about how to do a wage comparability study. Installment #2 will be released here.
We’ll also post via Twitter and LinkedIn. You can follow the company and Andi at the bottom of this page.
Vu Le is a must-read. His blog, Nonprofit AF, is a gem (FKA Nonprofit with Balls). I heard him offer practical tips on this topic at the Oregon Nonprofit Leaders’ Conference last spring. Vu is a leader on the salary range issue and many others.
Here’s a decent article with an overview of pay equity on payscale.com
National Committee on Pay Equity – FAQ and Reports/Resources
Definition of pay equity from the Work and Family Researchers Network, who has an extensive archive.
Thanks, it’s very informative
I like the report
Thank you for the excellent article
I’m often to blogging and i really recognize your content. The article has actually peaks my interest. I’m going to bookmark your website and hold checking for brand new information.
Hello it’s me, I am also visiting this site on a regular basis, this web page is genuinely good and
the viewers are in fact sharing pleasant thoughts.
I like the helpful information you provide in your articles.
I’ll bookmark your weblog and check again here regularly.
I’m quite certain I will learn lots of new stuff right here!
Best of luck for the next!
Thanks to my father who stated to me about this weblog, this webpage is really
If you would like to improve your knowledge only keep visiting this website
and be updated with the most up-to-date information posted here.
I was able to find good advice from your content.
This is the right webpage for anybody who hopes to
understand this topic. You understand a whole lot its almost tough to argue with you (not that
I personally will need to…HaHa). You certainly put a
fresh spin on a topic which has been written about for ages.
Wonderful stuff, just great!
Ha. Thank you. I learned from excellent leaders in nonprofit development and consulting.
Have a good day!
Thanks for your personal marvelous posting! I truly enjoyed reading it, you might
be a great author. I will make certain to bookmark your blog
and definitely will come back very soon. I want to encourage that you continue your
great work, have a nice afternoon!
Excellent article! We are linking to this particularly great content on our site.
Keep up the good writing.
I simply couldn’t depart your web site prior to suggesting
that I extremely loved the standard info an individual provide for your guests?
Is gonna be back ceaselessly to check up on new posts
Thanks for the sensible critique. Me and my neighbor were just preparing to do some research on this. We got a grab a book from our area library but I think I learned more from this post. I’m very glad to see such great info being shared freely out there.
These are really great ideas in about blogging.
You have touched some fastidious points here.
Any way keep up wrinting.
I seriously love your blog.. Very nice colors & theme.
Did you create this website yourself? Please reply back as I’m
trying to create my very own site and would
love to find out where you got this from or what the theme is
named. Many thanks!
Thanks! WordPress, Organic Natural theme