Preceptions on Pay Equity Infographic
PERCEPTIONS ON PAY EQUITY
According to a new Harvard Business Review Analytic Services Report sponsored by UKG, employers and employees have different perceptions on how making pay equity work for all and implementing long-lasting change should be achieved.
- 74% of executives consider pay equity a moderate or high strategic priority, but 49% report they don’t have a well-established pay equity plan in place.
- 62% of employees report their organization doesn’t have a pay equity plan in place, or even worse, they don’t even know if a plan exists.
- 41% believe their employers have successfully achieved pay equity, but 26% say their organizations have been completely unsuccessful.
Pay equity efforts are not evenly distributed across key employee groups
Employees who believe their organizations have succeeded in pay equity for all employee groups:
- 16% Asian/Asian American women
- 22% Hispanic and Latinx men
- 23% Black/African American women
- 25% White women
- 40% White males
What can we do?
Employees and executives both agree that conducting a pay equity audit would be beneficial in achieving pay equity; after that, the focus shifts.
Is transparency beneficial?
35% of employees cite transparency as one of the most impactful ways to eliminate disparities, yet only 16% expect to increase transparency as part of an overall plan to promote pay equity in the next year.
Is benchmarking beneficial?
42% of executives say using external benchmarks to align pay and experience would be beneficial, yet only 25% of employees surveyed agreed.
Who should be responsible?
47% of executives said that the Chief Human Resource Officer (CHRO) or equivalent should lead pay equity efforts, yet only 6% of employees believe so. 39% of employees are looking to the CEO or equivalent to lead the charge.
What can we do?
While employers and employees agree on what key benefits are most likely to be realized by achieving pay equity, employees rate them to a much lesser extent.
Encouraging and increasing workforce diversity
- Employers: 71%
- Employees: 37%
Building a stronger company culture
- Employers: 60%
- Employees: 44%
Greater employee engagement and productivity
- Employers: 60%
- Employees: 44%
Improved ability to acquire new talent
- Employers: 58%
- Employees: 34%
Improved retention of existing talent
- Employers: 55%
- Employees: 39%
How do we get there?
By focusing on strategies that align both sides and implementing an effective pay equity plan, together, employers and employees can make lasting change. 70% of executives say that their investment in pay equity initiatives will stay the same or increase. 50% are conducting pay equity audits at least yearly.
Learn what UKG is doing to close the wage gap. Visit ukg.com/CloseTheGap.
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Harvard Business Review Analytic Services Report: Making Pay Equity Work for All, September 2022, sponsored by UKG.