1、An Affirmity White Paper Cultivating Fair Pay in the WorkplaceYour Guide to Global Pay EquityCultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|ContentsIntroduction1What Is Fair Pay?2The Mechanisms of Unfair Pay3Why Should Organizations Care About Fair Pay?4Five Steps for Organiza

2、tions Who Want to Contribute to Fair Pay5A Concluding Note on Establishing Fair Pay6About Affirmity7Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|When discussing the world of work,its difficult to come up with a phrase as loaded with meaning and implications as“fair pay”.The

3、idea that fair pay should exist,in at least some form,has swept around the globe.Almost every country has laws and regulations stipulating the need for,and enforcement of,fair pay standards.While usually related to gender pay differences,internationally we see laws also dealing with other identifier

4、s.The list includes:Race Ethnicity Religion Age Sexual orientation Gender identity Citizenship status Geography Disability Veteran status Job categoryAs issues of pay fairness became more widely acknowledged by countries and their individual administrations,laws were developed to address them.They w

5、ere often developed as a reflection of a societys ideals.Whatever the catalyst,fair pay tends to be a charged issue.When you look at statistics describing pay differences,and the reasons for them,its easy to see why so much attention and energy is put into correcting unfair pay situations.For exampl

6、e,if we consider gender differences,the estimated gap between the average hourly wages of men and women is typically quite high:Introduction1Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|The graph above1 highlights pay gap information from the International Labor Organization

7、 Department of Statistics(ILOSTAT)for a selection of countries.The difference is pronounced and may be as large as 33%in some cases.Accounts of the difference can vary significantly,however.In the United States,the Department of Labor estimates that on average women make.68 cents on the dollar compa

8、red to men.The Census Bureau estimates that number to be about.81(using medians).Within this larger-scale picture are a number of factors where gender-related pay differences are in effect to varying degrees,such as:1 ILOSTAT(2016).Unadjusted gender gap in average hourly wages,2016.Our World in Data

9、.Available online.Starting pay Pay raises Promotion rates and resulting pay increases Bonuses Hire rates in various economic sectors,and for various position levels Tenure differences that occur because of gender-related life choices,and work-life interruptions.In turn,each of these factors can be t

10、raced to one or more gender-related psychological or social issues,which are explored in the sections to Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|5What Is Fair Pay?2One of the complications when dealing with fair pay issues is that the meaning of fair pay is not universa

11、lly established.We have a number of concepts that all speak to fair pay in different ways,and are more or less relevant to different societies.Some of the more important concepts are pay gaps,equal pay,pay equity,equal pay for work of comparable worth,and/or equal pay for work of equal value.Note th

12、at some of these exact terms are used differently in different countries.Our definitions here take a US-centric approach.Defining Different Types of Pay GapsPay gaps describe overall differences in pay between classes of people within a grouping,such as a country,sector,or organization.The differenc

13、es are typically described in terms of differences in average or median pay,but may also be described by other means such as percentile rank differences.For example,in the previous chapter,we cited an OFCCP statisticthat women make on average 68 cents on the dollar compared to men.This is an example

14、 of a pay gap statistic using averages.One of the reasons pay gaps are interesting is because they come in two forms:uncorrected and corrected.Uncorrected pay gaps are almost always larger because they arent taking into account things that may explain the pay gap.Corrected pay gaps are almost always

15、 smaller because they represent the gap in pay after various explanatory factors have been accounted for and fed into a statistical model(usually some type of regression).Explanatory factors may include:Economic sector Job level Experience level Company Job title or classification TenureThe idea for

16、 a corrected pay gap is that you are looking at the equivalent of the aggregation of differences in average pay between classes of people(such as males vs.females),who have the same characteristics(i.e.“explanatory factors”)in common.So for example,you would look at the differences in average pay be

17、tween classes who are in the same sector,the same job type,and have the same range of experience for each combination of sector,job type,and experience range.Then take an average or weighted average of those differences to get a controlled pay gap for the larger group.A recent Glassdoor report looke

18、d at corrected and uncorrected overall pay gaps in several countries2,3.2 Schield,M.(2019)The Gender Paygap Confounded:Uncontrolled vs.Controlled.Statlit.org.Available online.3 Chamberlain,A.Zhao,D.Stansell,A.(2019)Progress on the Gender Pay Gap:2019.Glassdoor.Available Cultivating Fair Pay in the W

19、orkplace:Your Guide to Global Pay Equity|6United StatesUnited KingdomCanadaBase PayTotal CompensationBase PayTotal CompensationBase PayTotal CompensationOverall(Uncorrected)21.40%25.30%17.90%20.70%16.10%18.20%With controls for age,education and years of experience(Corrected)19.10%23%12.90%15.60%13.6

20、0%15.70%As above,but with additional controls for company and job title(Corrected)4.90%7.10%5%7.10%4%5.90%Fig 1.Corrected and uncorrected pay gaps between men and women in the United States,United Kingdom and Canada.As can be seen in the table above,the addition of corrected controls can dramaticall

21、y close the visible pay gap.However,both corrected and uncorrected pay gaps implicitly make different assumptions about what is fair,and should be treated with a certain degree of caution as a consequence:Attaching meaning to an uncorrected pay gap implies that all factors that create that gap are c

22、ontributing to an unfair difference in pay.If we say the gap is unfair and most of the gap is caused by differences in sector participation between men and women,then we are effectively saying that the difference in sector participation has some unfair quality to it.Attaching meaning to a corrected

23、pay gap implies that the gap is only unfair in situations where classes of people with similar characteristics still have differences in pay.These differences in interpretations between pay gap types illustrate the reason for different ethical and regulatory approaches to fair pay,and lead us into t

24、he other important fair pay concepts mentioned earlier4.4 When looking at fair pay concepts for compliance reasons,it is important to remember that different policies may have regulations that specify different legitimate or non-legitimate reasons for pay Cultivating Fair Pay in the Workplace:Your G

25、uide to Global Pay Equity|7Other Equal Pay TerminologyThe terms“equal pay for work of equal value”and“equal pay for work of comparable worth”are used to illustrate the principle that pay should be based on factors related to the value work brings rather than the exact nature of the work itself.These

26、 factors could be working conditions,responsibility levels,preparation requirements,skill level,and required effort.To the extent that work of the same value level is compensated differently,then this principle is violated.For example,a female-dominated job such as an administrative assistant may,af

27、ter evaluation,be determined to have the same value to an organization as a higher paying male-dominated job such as truck driver.In such a case,the pay of the administrative assistant positions would need to be increased to adhere to the principle.This type of fair pay concept is captured in variou

28、s laws around the globe,and may protect only women,men and women,or various other types of classes,based on groupings such as race or ethnicity:In Canada,both Quebec and Ontario have laws(pay equity acts)requiring companies to determine which job classes are associated with either males or females.T

29、hese must then be evaluated in terms of value,and then pay must be adjusted for female job classes that are underpaid compared to male job classes with similar values.The UKs Equality Act of 2010 also describes the requirement for equal pay between men and women for work that is rated as equivalent

30、in value,even if the nature of the work is quite different.In the US,various state laws are in effect that also require equal pay for comparable work.For example,the Massachusetts Equal Pay Act and Oregons Pay Equity Law define comparable work/work of comparable character.This is in a similar fashio

31、n to the Canadian and British laws which use skill,effort,responsibility,and working conditions to establish similarity.Pay Equity Versus Pay EqualityPay equity means providing equal compensation for employees who are similar in terms of job duties and important characteristics such as experience,te

32、nure,location,and job performance.Pay equity is in line with looking at controlled pay gaps.In the United States,fairness in pay is usually considered through the pay equity lens,and is captured in the Equal Pay Act.However,government contractors must abide by regulations that indirectly address pay

33、 equality through various affirmative action programs.Pay equality is a broader concept than pay equity and refers not just to equal pay for people in similar situations,but also to the equality of opportunity,motivating factors,and acceptance that lead to the proportional holding of positions acros

34、s the pay spectrum.Pay equality is in line with looking at uncontrolled pay gaps and is more relevant in countries outside of the US.For example:France has laws that may hold companies accountable for gender differences in promotion rates and top earner representation,as well as for gender differenc

35、es in pay and pay increases.The UK requires larger companies to disclose uncontrolled pay gaps between all male and female employees,along with the percentage of women in each pay Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|8The Mechanisms of Unfair Pay3For many groups,the

36、story of unfair pay begins during the hiring process.In countries like the United States,candidates can positively shape their starting pay via negotiation.Studies have shown that women negotiate less.In the past,it was thought that this was primarily because women were less willing to negotiate whe

37、n given the chance.However,contemporary research suggests that women are less likely to be given that chance in the first place,and are even penalized for attempting to negotiate5,6.Furthermore,starting pay is also affected by previous payconsidering that this tends to be less for women,there is a c

38、umulative negative effect on pay in the long term.A recent ruling by the 9th Circuit Court of Appeals7 captured this specific issue.The defendant(the Fresno County Office of Education)attempted to argue that prior pay was a“factor other than sex”when determining starting pay.The court found in favor

39、 of the plaintiff,and ruled that past earnings cannot justify pay disparities between women and men.How Aggression Myths Undermine Women and People of ColorStarting pay is also affected by a whole cocktail of psychological biases that typically(though not solely)undermine the perception of the worth

40、 of women and people of color to an organization.In the long term,these biases likewise affect performance metrics,promotion chances,promotion pay increases,pay raises,and bonus distributions.A 2018 Harvard research study8 found that women who asked for a raise obtained it 15%of the time.By contrast

41、,men were found to have a 20%success rate.Similarly,a McKinsey&Company study6 found that women who negotiate for pay and promotions are disproportionately penalized for doing so.This group of women was 30%more likely than men who also negotiated for pay to receive feedback indicating they are intimi

42、dating,aggressive,or bossy.They were 67%more likely to receive such feedback when compared with women who dont negotiate.Findings in a study in the Journal of Applied Psychology9 echo these statistics when considering African Americans negotiating for salary increases.The study found that this group

43、 is(falsely)perceived as negotiating more frequently than whites.They were more harshly penalized for negotiating too:for every offer or counteroffer an African American employee made,they received$300 less in salary when compared to their white colleagues.Consider also,that these differences are pl

44、ayed out multiple times over the course of these employees professional lives.Over a whole career,small gaps accumulate and widen into chasms.5 Artz,B.Goodall,A.Oswald,A.(May,2018)Do Women Ask?.Industrial Relations.Available online.6 McKinsey&Company.(2016).Women in the Workplace 2016.Available onli

45、ne.7 United States Court Of Appeals For The Ninth Circuit.(2020)Rizo V.Yovino.Available online.8 Artz,B.Goodall,A.Oswald,A.(2018)Research:Women Ask for Raises as Often as Men,but Are Less Likely to Get Them.Available online.9 Hernandez,M.(2018)Bargaining While Black May Lead To Lower Salaries.Journa

46、l of Applied Psychology.Available Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|9Why Dont Women Get to Be Leaders?In many countries,women are less likely to be viewed as leaders or as having leadership qualities.Again,there are multiple biases at work here,which stem from thi

47、ngs such as:The association between leadership and stereotypically masculine qualities The lack of prominent models for what female leadership looks like Traditions that cast women in non-leadership rolesThese biases decrease the likelihood that women will become prominent in their field,promoted in

48、 their organization,or chosen for higher-level positions within an organization.Given that women make up a bit more than 50%of most populations,the disparity with which women are actually represented in leadership roles can be quite striking.In the chart above,using data from the United Nations Stat

49、istics Division10,we can see the percentage of women in senior and middle management positions for selected countries.The lack of women in these positions in the countries of Europe is particularly strikingas low as 22%in Italy.10 ILOSTAT(2017).Proportion of women in senior and middle management pos

50、itions,2017.Our World in Data.Available Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|10The issue is even more pronounced at the very top,as shown by this second graph revealing the percentage of female CEOs or top-level managers by major region11.Worldwide,only around 18.5%o

51、f top-flight executives are womenand in the available data,only in the East Asia&Pacific region does this percentage rise significantly above the worldwide trend.11 World Bank.(2017).Share of firms with female top managers,2017.Our World in Data.Available online.Cultivating Fair Pay in the Workplace

52、:Your Guide to Global Pay Equity|In the United Kingdom,we have already seen that around one-third of senior and middle management positions are filled by women.As a counterpoint,the chart above12 shows the percentage of women within the UKs top income groups:as we get closer to the highest 0.1%of ea

53、rners,the proportion of women in those groups decreases steadily.This suggests that even where women have access to higher positions,they dont have access to the same levels of compensation.12 Atkinson,Casarico,Voitchovsky.(2018)Share of women in top income groups.Our World in Data.Available online.

54、13 Change,E.(2019)The vile experiences of women in tech.The Economist Available online.The Gendered Profession PipelineIn many countries,women are also steered away from many higher-paying fields.Sometimes male-dominated fields can become actively hostile to women through a mix of cultural norms and

55、 in-group practices:unsociable hours and excessive overtime requirements may be incompatible with childcare responsibilities,for example.Or industries may have a boys club mentality rife with outright sexism,or a tendency to close ranks whenever negative behavior is called out13.Cultivating Fair Pay

56、 in the Workplace:Your Guide to Global Pay Equity|Often,the process is less overt and shaped over many years by society at large.Young girls and women get certain messages from advertisements,pictures,cultural depictions,and role models.The signals imply that they are better suited to certain profes

57、sions,while their presence in others would be at best a notable exception.Typically the fields that women are steered away from are those that are higher-paid,and the fields that come to be dominated by women tend to become undervalued over time.Once gender becomes a predominant factor for a field,t

58、he education level,effort,conditions,and level of responsibility required by available positions tend to correlate poorly with the degree to which that work is valued and compensated by society.In fact,several examinations of this effect have demonstrated that pay levels associated with formerly mal

59、e-dominated roles start to drop when women begin to dominate them.14We can again look at ILOSTATs data15 for a variety of countries showing the percentage of low pay earners who are women,and see that even in countries with an egalitarian ethos and strong fair pay laws,women make up the majority of

60、this group.14 Cain Miller,C.(2016).As Women Take Over a Male-Dominated Field,the Pay Drops.The New York Times.Available online.15 ILOSTAT(2015).Share of women among low pay earners,2015.Our World in Data Available online.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|Family Bu

61、siness?None of Our BusinessWomen sometimes have children.This is perhaps central to the web of reasons that women are lower paid.Why the further continuation of the human race is quite so under-appreciated by the majority of societies is beyond the scope of this document.Suffice it to say,the immedi

62、ate reason the ability to have children negatively affects pay is that many companies and the people in them have been,and to some degree still are,resistant to taking on part of the burden associated with child-rearing.For a large part of their working lives,women will be considered a more risky hi

63、ring proposition because they are perceived as being more likely to:Require maternity leave Request flexible hours Go through periods of lowered availability Cause the business to incur additional insurance coverage costs Leave for family reasonsAdditionally,women do not seem to get credit for the n

64、on-professional experience they gain when they do decide to stay out of the workplace in order to raise their children.This time is often viewed as entirely devoid of work experience worthy of compensation.Considering that the process of returning to work is itself a challenge that requires skill to

65、 navigate(especially in the United States),this perspective can add insult to financial injury.Reasons for pay differences between other groups of people are similarly complicated,and overcoming these causes of pay inequality is daunting.Yet,for most people and for most societies,the principles they

66、 follow make both the pay inequalities and the reasons for such pay inequalities unacceptable.This is why fair pay matters in the larger sense,but it also matters for a number of very practical reasons.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|Why Should Organizations Car

67、e About Fair Pay?4The push for various forms of fair pay is intensifying around the world.Companies seen as having unfair pay practices are increasingly likely to suffer in the form of:Regulatory intervention and oversight Poorer talent choice Higher turnover Negative reputationsWorkers are increasi

68、ngly sensitive to fair pay issues.Often those with the greatest talent,particularly when they are workers in historically underpaid groups,will go where companies are known to pay fairly.This creates both competitive advantages for fair paying companies and competitive disadvantages for companies wi

69、th lesser reputations.PR,Compliance,and TrustHR leaders,shareholders,and CEOs are increasingly recognizing the impact these factors are having on their ability to remain competitive.We see organizations not only taking pay equity measures but ensuring that those measures are part of PR messaging.Int

70、el,for example,has recently made public announcements of its efforts on gender pay equity16 and Starbucks has increasingly become an advocate of gender pay gap closures17.In a study conducted by Korn Ferry18 it was found that 60%of companies are actively addressing pay equity issues.Most others(33%)

71、have pay equity management on their radar,though they have not yet taken action.The same study also found that multinational organizations typically address pay equity across all of the countries in which they operate.Further,this study found that the two primary reasons for engaging in pay equity m

72、anagement are legal compliance and building or maintaining a culture of trust.Trust is after all,especially important to the C-Suite,as 41%of C-Suite respondents stated this as their primary reason for pursuing pay equity.The Cooling Effect of Unfair PayCompanies with a reputation for unfair pay pra

73、ctices will find that that reputation can also undermine any other initiative that requires the cooperation and goodwill of its employees.People simply will not put forth the same amount of effort,enthusiasm,and support for the things an employer would like to do when they believe they are being und

74、erpaid compared to others who are doing the same things,and have the same qualifications.This is not yet a problem for all businesses:it requires employees to know what their colleagues are paid.However pay laws are increasingly targeting the idea of pay transparency.In the United States for example

75、,federal contractors cannot retaliate against employees for discussing their own pay or the pay of others(EO 11246)19.And,in several states20 similar laws offer comparable protections for all employees.Then theres the Lilly Ledbetter Fair Pay Act of 2009,which treats each paycheck that contains disc

76、riminatory compensation as a separate violation and is retroactive in terms of liability for up to two years.In 2019,the EEOC resolved 1,310 charges under the Equal Pay Act,and arguably,this is just the beginning.In combination,these laws will likely result in greatly increased activity around equal

77、 pay related litigation in companies with unfair pay practices.16 Overcash,J(2019)Intel Achieves Gender Pay Equity Globally.Intel.Available online.17 Green,J.(Dec,2019)Starbucks Discloses Gender and Racial Pay Gap:There Isnt One.Bloomberg.Available online.18 World at Work,Korn Ferry.(2019)2019 Pay E

78、quity Practices Survey of C-suite and Reward Leaders.Available online.(Cached)19 U.S.Department Of Labor(2017)Pay Transparency Nondiscrimination Provision.Available online.20 Map available here.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|Around the world,even stronger pay t

79、ransparency laws are becoming the trend:In Norway,tax records are publicly available.This has resulted in newspapers and apps grabbing this information and making it easily available to everyone.Employees are now able to make pay comparisons between themselves and specific colleagues.In Germany,the

80、Wage Transparency Act allows employees to obtain information about the remuneration of the opposite sex for comparable jobs.This information includes pay averages of at least six comparable co-workers,and the criteria and procedures used to set pay.In Ontario,Canada,the Pay Transparency Act will req

81、uire employers with 100 employees or more to track and publish compensation gaps that are based on gender.According to a 2018 Willis Towers Watson survey21,67%of employers reported that they have made,or planned to make,their pay decisions more transparent within the next three years.This measure wo

82、uld be taken along with revising annual incentives,boosting base pay,increasing the use of technology in making pay decisions and implementing recognition programs.This will undoubtedly help reduce pay gaps over time,as research is showing that better availability of salary information and ranges is

83、 likely to help close pay gaps22,23.Diversity PaysStudies also show that greater diversity in higher level/paid positions is associated with better company performance.A study by the Peterson Institute24 of 22,000 firms globally found that profitability increases an estimated 15%for firms with at le

84、ast 30%women in the C-suite(as compared to firms with none).Similarly,a study from McKinsey&Company25 supports this by finding:1 Top quartile companies on executive team gender diversity were 21%more likely to have above average profitability than companies in the bottom quartile.They were also 27%m

85、ore likely to have industry-leading performance on long-term value creation.2 Top quartile companies on executive team ethnic/cultural diversity were 33%more likely to have above average profitability than companies in the bottom quartile.3 Higher profits are 43%more likely for companies with the gr

86、eatest ethnic/cultural diversity on their boards.21 Willis Towers Watson(2018)2018 Getting Compensation Right Survey Findings.Available online.22 Chamberlain,A.Zhao,D.Stansell,A.(2019)Progress on the Gender Pay Gap:2019.Glassdoor.Available online.23 Schield,M(2019)The Gender Paygap Confounded:Uncont

87、rolled vs.Controlled.Statlit.org.Available online.24 Noland,M.Moran,T.(2016)Study:Firms with More Women in the C-Suite Are More Profitable.Peterson Institute for International Economics.Available online.25 Hunt,V.Yee,L.Prince,S.Dixon-Fyle,S.(2018)Delivering through diversity.McKinsey&Company.Availab

88、le online.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|The Non-Compliance Costs of Unfair PayFinally,unfair or discriminatory pay practices can hurt financially.Over the past three years the OFCCP has collected$81 million in monetary relief26 for various forms of discriminat

89、ion and adverse impact,with about half of that amount collected in 2019 alone.A significant portion of this was for pay discrimination,for which cases have tripled from 2015 to 2019(and gone up by 83%from 2018 to 2019).The OFCCP collected a record$40 million in class settlements during 201927.This i

90、ncluded:Goldman Sachs agreeing to pay 10 million due to alleged gender-and race-based pay discrimination28 Dell agreeing to pay 7 million due to alleged gender-and race-based pay discrimination29 Intel agreeing to pay 5 million due to alleged gender-and race-based pay discrimination30Similar action

91、is expected to continue for the foreseeable future.Already this year,Cisco Systems has agreed to pay 2 million due to alleged gender-and race-based pay discrimination,and make 2.75 million in pay equity adjustments31.Global VariationGlobally,most governments are concerned with gender pay issues(whic

92、h may include issues related to sexual orientation and gender identity).A fair number are concerned with race,religion,and ethnicity pay issues as well as issues related to disability,and a few are concerned with more uncommon issues such as protecting veterans,protecting locals,protecting temporary

93、,part-time,and contingent workers,and protecting people based on geographic location.Several countries,such as France,have laws preventing discrimination against anyone who is similarly situated to others within a job category.So,if two people in the same job are identical in almost every way,and on

94、e makes less than the other,then this would be considered a form of discrimination,even if they are identical on categories such as gender,race,religion,etc.In effect,a job class or category in such cases is a protected class.So,fair pay is not a clear black and white concept,and people will disagre

95、e about what it means.Additionally,laws and regulations for different states will take different approaches to establishing fair pay and will aim these approaches at different classes of people.As a result,what constitutes fair pay in a practical sense will need to be defined for each organization.H

96、owever,the general consensus seems to be that there is something wrong with uncorrected pay gaps between significant groups of people.The question then becomes:what does paying fairly look like for different organizations?And how much can organizations contribute to fair pay in the larger societal s

97、ense?26 Office of Federal Contract Compliance Programs(2019)OFCCP By the Numbers.Available online.27 Burden,L.(Nov,2019)OFCCP collected record$40M in class settlements for 2019.HRDive.Available online.28 U.S.Department of Labor.(2019)U.S.Department Of Labor Reaches Conciliation Agreement For$9,995,0

98、00 In Back Pay And Interest.Available online.29 U.S.Department of Labor.(2019)U.S.Department Of Labor Reaches Conciliation Agreement For$7,000,000 In Back Pay And Interest.Available online.30 U.S.Department of Labor.(2019)U.S.Department Of Labor Reaches$5 Million Settlement With Intel Corp.To Resolv

99、e Pay Discrimination Allegations.Available online.31 U.S.Department of Labor.(2020)Updated:U.S.Department Of Labor And Cisco Systems Inc.Enter Agreement To Resolve Alleged Pay Discrimination In San Jose.Available online.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|Five Steps

100、 for Organizations Who Want to Contribute to Fair Pay5Step 1:Define What Fair Pay Means to Your OrganizationThe first step to paying fairly is to figure out what that means for an organization and what its standards need to be.How does fair pay relate to the ethics,ethos,and mission of the organizat

101、ion?And,what does fair pay mean in terms of the various legal responsibilities an organization is subject to in different parts of the world?Depending on the size and geographic presence of an organization,this task may be simple,or it may need to involve several high ranking executives along with a

102、 variety of HR professionals and legal counselors who are familiar with different societal and legal landscapes.Step 2:Perform Analyses That Show Where You Come up ShortThe second step is to see where the organization may be falling short of the created standards.This can be done through a variety o

103、f statistical analyses and work analyses,including:Overall pay gap analyses Corrected pay gap analyses Pay equity analyses looking within specific job classes Pay equity analyses between comparable job classes Various job valuations systems Various workforce analyticsNote that as part of this proces

104、s,an organization will be creating a great deal of information that could be used against it.It is recommended that these analyses be done under privilege where possible,and that the organization become familiar with safe harbor provisions with respect to compensation analyses in the various regions

105、 it operates.Safe harbor laws provide various forms of legal protection in response to some action taken,such as a compensation analysis.Step 3:Account for Explanatory FactorsThe third step is to figure out if potential fair pay issues are explainable in a way that does not violate the created stand

106、ards for pay fairness.This may involve a great deal of investigation,and for larger companies that see a lot of potential issues,should involve a commensurate outlay of resources.This is one of the reasons high-ranking people should be involved with this process from the beginning.Where differences

107、in pay between classes of people cannot be explained by reasonable and acceptable causes,the organization should investigate the causes of unacceptable pay differences.This will allow such causes to be strategically addressed.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|Step

108、 4:Design and Implement Your Corrective ProgramsThe fourth step is to create programs designed to overcome the various causes of unacceptable pay differences.These programs can take a variety of forms:Simple pay increases for people determined to be underpaid due to unknown factors.Recruitment campa

109、igns designed to attract underrepresented classes to specific positions or levels within the organization.Changes to policies and procedures that allow for more needed flexibility and acceptance of class-based requirements.Mentorship programs designed to facilitate leadership qualities and skills in

110、 a greater diversity of people.The establishment of diversity and inclusion programs,and purposeful consideration of people in more than one category(males and females for example)when granting promotions.While an almost infinite number of things can be done to address fair pay issues in an organiza

111、tion,its important to consider local anti-discrimination and compensation laws when creating these programs.For example,in the United States,its illegal to make any employment decision based on gender status,and discrimination against both females and males can be litigated.This would make a program

112、 that explicitly favors females for promotion unlawful.Similarly,many countries have provisions in their fair pay laws that prevent companies from lowering the pay of employees as a means of eliminating pay differences between classes.Step 5:Validate&ReiterateThe fifth step is to validate the progra

113、ms designed to increase fair pay by running analytics from Step 2 on some recurring schedule,usually once a year.If no or very small positive effects are occurring,then it may be prudent to re-examine both the assumed cause of the fair pay issues,and the efficacy of the programs designed to address

114、the issue,and make adjustments.In this way,resources can be continually directed to greatest effect.Cultivating Fair Pay in the Workplace:Your Guide to Global Pay Equity|A Concluding Note on Establishing Fair Pay6Organizations can make substantial contributions to fair pay in societies where they op

115、erate by adjusting how they operate and interact with people.However,some issues will be out of any organizations immediate span of control.For example,an organization that primarily employs engineers(who are its highest-paid employees)will have a very hard time closing its uncorrected pay gap betwe

116、en men and women if they operate in a society that produces very few female engineers.To close this gap,the organization would need to employ a highly unrepresentative number of female engineers,which is difficult to do,would likely not help the societal pay gap in the short term,and would,in some p

117、olities,bring accusations of discrimination against men.However,the organization can do things that will help solve this pay gap issue in the long term by projecting the need for female engineers.It can set about creating model organizational climates that engender women to become engineers.It could

118、 also join with other companies that are trying to solve the same issue,create groups dedicated to the issue,and otherwise do things to make a male-dominated occupation attractive to women.Similarly,when addressing unfair pay situations affecting other classes of people,organizations are both limite

119、d in what they can do in the immediate term and highly influential in establishing what can be done in the long term.While fair pay issues are complex and can involve equally complex and difficult solutions,the research done on this topic indicates that the benefits of achieving fair pay are many an

120、d go to everyone.The resulting enhancement of diversity seems to make businesses function better,people who are paid equitably are more likely to be motivated,and to place greater trust in their organization,and a given society is seen as more Contact UsTo learn more about Affirmitys Diversity Insig

121、hts and Workforce Analytics solutions visit usor call one of our experts today at:800-782-1818,option 3|About Affirmity7Affirmity provides expert analysis,consulting,training,and software to optimize affirmative action and diversity and inclusion programs.Our team of experts delivers diversity metri

122、cs and data-driven insights to manage and mitigate risk.Drawing on more than 40 years of experience,we guide HR and compliance teams through diversity goal setting.Affirmity empowers leaders with tools and dashboards to measure progress,and we help clients capture and communicate the positive business impacts of diversity initiatives.A part of Learning Technologies Group plc(LTG),Affirmity serves more than 1,100 organizationsincluding global corporations,mid-sized organizations,and small businesses.For more,visit .