Pay Parity – a term used to refer to the lack of a pay gap present in a company. Even though much of the focus around the topic of pay parity is on the difference in pay between men and women, pay gaps occur in other groups. PayScale found that Black, Hispanic and Native American men earned less than white men, controlled or uncontrolled.
Company leaders need to assess inequities in talent management across the spectrum. This includes recruiting, selection, hiring, performance assessment and promotion practices. HR leaders must also look deeply to uncover and solve pay issues.
If an employer discovers a pay gap within the company, it is crucial for them to tackle the cause as soon as possible. Education, work experience, unconscious bias and overt discriminatory animus can all play a role in pay parity. The first step to fixing the issue is to conduct a pay audit that looks across roles, demographics and locations to determine the details and patterns of the pay parity within the company, to help determine the cause and the best solution.
The solution can include providing thorough training to managers as they are responsible for performance compensation and must make sure they distribute it fairly and transparently. Read up on what gender pay gap reporting means for your business.