A Cross-Functional Approach to Pay Equity | Gartner

Workforce Trends

Pay equity—compensating employees the same when they perform the same or similar job duties while accounting for other factors, such as their experience level, job performance, and tenure with the employer (SHRM)—is a hot topic for many organizations. While much of this attention has been driven by legislation around pay transparency, there is also a greater acknowledgment that perceptions of pay equity—whether or not those perceptions are accurate—influence certain outcomes. For example, as shown in Figure 1 of this Gartner article, perceptions of pay equity impact workers’ intent to stay with their organization, their job search activity, and engagement. And although CHROs and total rewards leaders are leading efforts to improve pay equity in their organizations, this Gartner article also submits that the implementation of a successful pay equity strategy requires CHROs to enlist the support of a cross-functional team to execute it. Table 1 provides a suggested model for a pay equity team structure, inclusive of 1) Senior Leaders (e.g., CHRO, Legal Counsel, Business Unit Leaders, and Chief Financial Officer), 2) HR Leaders, ranging from Head of Total Rewards and Head of DEI, and 3) Employees—both managers and employees. The chart provides a high-level view of the role these stakeholders play in improving their organizations’ pay equity. In case you missed it last week, here is an ADP Research Institute report that shares research on factors that influence how workers feel about pay equity.

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