Equal pay is fair and right. We can all agree on that. But it’s not just about doing the right thing – it offers enormous benefits to organisations and their employees…
There are plenty of pros and very few cons to adopting an equal salary strategy. Currently, the EU gender pay gap resides at 14.1%, but when you consider the knock-on effects this has on women’s retirement, it is clear that things need to change as soon as possible.
To close the gender pay gap, more companies need to be committed to doing their part; and we need more employees to demand pay equality. One way of starting the conversation is to highlight the plethora of benefits that equal pay brings, leading to more successful and robust organisations.
This is how we can begin to tip the balance.
Whether you are a senior manager/HR leader eager to give your organisation the leading edge or an employee hoping to convince your employer to adopt an equal salary strategy, read on…
Benefits For Organisations:
- Loyal employees become advocates. An increased profile attracts talent as well as the potential for unique business opportunities.
- It showcases positive values to employees and other stakeholders.
- Staff turnover is reduced as fewer employees will want to leave a company that makes them feel valued, heard and understood.
- More women are enticed into leadership roles because it is more financially viable to stay in the workplace after having children, which leads to increased diversity at the top.
- Profits are potentially greater as a result of improved diversity.A study by Pepperdine University showed a strong correlation between promoting women to the executive suite and an 18-19% increase in profitability.
- Better management relations with Increased efficiency and motivation from an empowered workforce who champion the org
- A fairer culture in which male employees feel supported in taking time off for paternity and other caring responsibilities. Men feel more inclined to take on caring roles if their partner does not earn significantly less.
- Improved employee mental health, which goes hand in hand with feeling valued, listened to and seen.
- Important equality issues such as under-representation, job segregation and unequal holiday and sickness entitlement that may otherwise have gone unnoticed are uncovered through equal salary reviews.
- Costly legal penalties brought about by equal pay claims are avoided.
Benefits For Employees:
- Employees feel more valued and more comfortable working for their current employer.
- Female employees are more likely to be seen as valuable team members, bringing a different perspective to problem-solving, policy setting and teamwork.
- It puts women on an equal financial footing throughout their working lives, all the way to retirement (the pension gender pay gap currently stands at 29% within the EU).
- More male employees may choose to take extended paternity leave because an equal working culture makes the concept less detrimental to career progression.
- Workplace bias (whether unconscious or not) is significantly reduced.
We are in a climate where society is demanding fair and just treatment of everyone. Those organisations that deliver equality, not just of equal pay but also of representation, will be the organisations that have the most dedicated and loyal advocates in their workforce.
Those organisations that don’t adopt a new outlook will undoubtedly be left behind on many levels.
EQUAL-SALARY is an independent third-party certification that proves your company pays its employees fairly. It also drives you to have well-implemented HR processes that will lead to continuous improvement.
For more information about EQUAL-SALARY get in touch.