Credit: Looker_Studio/Adobe Stock;

Over the past two years, my team and I have been examining the persistent, and frankly indefensible, issue of pay inequity. Our (The Josh Bersin Company) latest study has revealed some troubling insights, indicating that pay inequity remains an entrenched and systemic issue.Since 2017, there has been some progress in reducing the gender pay gap, which has narrowed from 18% to 15%. However, this progress has been slow and inconsistent. For managerial roles, the gap has decreased more significantly, from 14% to 10% over the same period, suggesting that leadership roles are making strides at a faster pace than the general workforce. Yet, these advances still fall short of what’s needed, calling for heightened focus from both organizational leaders and society at large. At the current rate, full gender pay parity isn’t expected until 2048, while equality in managerial pay is projected for 2036.In other words, true pay equity remains a generation away. But this issue transcends sociology or politics—it’s a business imperative. Our data reveals that pay equity is not simply a compliance checkbox or a “nice-to-have”–-it’s 13 times more influential on employee retention and satisfaction than pay levels alone.Leading organizations understand that fair compensation cultivates a positive work culture, enhancing both engagement and productivity. This is increasingly evident in companies like Salesforce, American Airlines, and SAP, which are demonstrating that embedding pay equity across all business practices and proactively addressing potential inequities in talent management can drive profitability, increase customer satisfaction, and secure a competitive advantage.If you’re ready to make lasting strides in closing the pay gap, here are some practical steps you can take as a CHRO to lead meaningful progress toward pay equity.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.