“Pay equity” is a complex, multifaceted discipline aimed to create equal pay for equal work. What this means is that companies need to define what equal work is (including job roles, levels, experience, skills, qualifications, location, etc.) and what groups to compare against in order to determine material differences in pay.
Regulatory laws vary across geographies, ranging from no control to a need to publicly disclose pay equity, like in the United Kingdom.
Beyond legal compliance, companies need to define the strategy, model, and communication approach that fits their business environment, business, and people strategy.
Companies like Salesforce have been making large pay equity adjustments annually to mitigate inequities and are also innovating and improving their approach, going beyond retroactive adjustments toward real-time data and embedding bias mitigators into recruitment, performance management, promotion processes, and development.
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