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Founder & CEO I Advisor I Accelerating Social Impact for businesses I Driving Sustainable Transformation I Keynote Speaker
Pay transparency is so much more than just about the Pay - Save the date to an upcoming webinar! Pay equity is not just a basic human right and ethical imperative; it is a strategic business advantage that benefit both individuals and organizations. Ensuring pay equity requires so much more than just equal pay for equal work. It requires a solid foundation of equitable people practices and processes that must be defined in a way that they support equity and eliminate discrimination, and they also need to be consistently applied by all leaders. By experience I know that this is not easy, but with strong leadership and commitment to build the right culture, it is achievable. Why is Pay Equity topical now? The gender pay gap and other pay inequities still exist globally. Organizations should actively work to reduce these gaps and ensure equal treatment for everyone. Pay equity is closely linked to broader diversity, equity, and inclusion (DEI) efforts. There are number of benefits companies gain with pay equity and – transparency. It boosts employee engagement, helps to attract top talent, enhances employer brand, and reduces compliance risks. The EU's Pay Transparency Directive, adopted on April 5, 2023, mandates companies on pay transparency and reporting on gender pay gaps, promoting fair pay practices and enhancing workplace equality. This directive comes into force in phases starting in 2026. Identifying Causes of Pay Inequality In her thesis on "Identifying Causes of Pay Inequality," Helene Hartikainen, with insights from interviewed executives, highlighted several cultural and process related factors contributing to pay inequality. One key insight is that leadership plays a crucial role in addressing these issues by making informed decisions, communicating openly, and actively mitigating bias. Leaders need to make the justified calls. How to support and develop Pay Equity? The starting point is that leadership must commit to treating all people equally, with no exceptions. 🌟 Fostering a culture of accountability, openness, collaboration, and trust. Having transparent communication of the company's compensation philosophy, pay principles and actions taken to address gaps. Employees need to see, feel, and trust the system. ❤️ 🌟 Recognizing that promoting pay equity is an ongoing process, not a one-time initiative. It requires commitment, active work, and time. 🌟 Building the foundation. Ensuring that all people processes drive equal treatment. Also, it is important to have the job structure in place for consistent job evaluations. 🌟 Actively identifying and acknowledging gaps and systematically addressing them. Learn more in a Webinar that we will host on this topic in collaboration with Paul Puustinen and Helene Hartikainen from Perform and Pay, Paul and Helene on September 24 at 10 EET. Register now - https://lnkd.in/d_NBw2Y3 #Leadership #PositiveChange #CultureDevelopment #Equalpay