COMP NEWS – Roughly one in three companies surveyed have no pay equity strategy, according to a new survey.
Although more companies say they’re striving for pay equity and transparency, about 34% still don’t have a pay equity strategy in place, according to a June 27 report from beqom, a compensation platform.
More than half of compensation decision-makers said they doubt their company complies with global standards, and 45% said their approach to pay equity is hurting their ability to attract talent.
“Our survey shows employers grapple with addressing wage discrepancies and promoting fair compensation. They understand the urgency in confronting wage gaps but find themselves navigating a complex web of regulatory requirements and stakeholder demands,” Tanya Jansen, co-founder and CMO of beqom, said in a statement.
While some companies have yet to implement pay equity strategies, many are actively analyzing their compensation strategies and making plans to adjust based on findings.
In a survey of 875 U.S. and U.K. salary decision-makers, just 2 in 5 said they’re aware of global pay equity standards. However, they’re trying to make progress — 70% said they’ve analyzed their compensation strategies and shared gender pay gap statistics with employees and/or external stakeholders. A majority of companies have also uncovered wage discrimination, promotion disparities, below-market salary ranges and pay compression.
In response, most companies reported taking steps to close existing gaps and foster transparency, such as listing salary ranges within new job descriptions (81%), increasing salaries due to inflation and economic standard-of-living costs (68%) and implementing a process for continuous feedback (67%).
Survey respondents also said their companies are increasing pay to correct pay gaps and salary inconsistencies, providing a clear structure for bonuses and performance review processes, making executive pay visible and disclosing the pay ratio for executive officers and median employees.
To read more about the survey on pay equity, click here.
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