New research shows that 58% of organizations are voluntarily conducting pay equity reviews to identify possible pay differences between employees performing similar work.
Conducted by the Society for Human Resource Management, the study found that of those organizations who did so, 83% adjusted employees’ pay following a pay equity review.
The surveys of HR professionals and workers also demonstrate that focusing on how employees are compensated has numerous benefits for employers, especially when it comes to strengthening workplace culture, the society said.
For example, 91% of employees who believe their organization is transparent about how pay decisions are made also said they trust that their organization pays people equally for equal work regardless of gender, race and ethnicity.
Conversely, only 49% of those who believe their organization lacks transparency when it comes to pay decisions trust that employees are being paid equally for equal work.
SHRM also found that 47% of HR professionals said their organizations are transparent with employees about how pay decisions are made, but 94% think it is important for employers to do so.
“This research shows that workplace culture starts at the top – and organizations with forward-thinking leadership are in the best position to win the global competition for talent,” observed Emily Dickens, SHRM chief of staff, head of government affairs and corporate secretary.
SHRM also found that organizations with 5,000-plus employees (78%) are significantly more likely to conduct pay equity reviews than organizations with fewer than 100 employees (48%).
In addition, those firms with female owners or chief executive officers are more likely than those with male owners or CEOs to conduct pay equity reviews or audits (67% versus 55%).