Employers look at pay parity in response to #MeToo outcry
The #MeToo and #TimesUp movements have done more than shine a light on sexual harassment in the workplace. They’ve also prompted employers to take a fresh look at gender-based pay disparities.
In a Challenger, Gray & Christmas survey conducted in January among 150 HR executives, 48% of companies responded that they are reviewing their compensation policies to guarantee pay parity, focusing on gender due to the recent #MeToo and #TimesUp movements.
Twenty-eight percent responded that they are already paying male and female workers equally. Another 17% said they are not reviewing their policies.
According to the Institute for Women’s Policy Research, on average, women in the United States earn 80 cents for every dollar that men earn. This number can be even lower in certain industries and for women of color.
One way companies could ensure pay parity is by implementing salary transparency, allowing workers to see what their colleagues and superiors make. In a survey conducted by Challenger in November 2014, 55% of HR executives responded that companies should practice salary transparency in some form—either full salary transparency or providing a range of compensation for each position for workers to review.
Despite the desire for salary transparency, only 3% percent of companies surveyed by Challenger in January 2018 execute salary transparency, allowing employees to view compensation ranges for each position. Ninety percent of companies do not implement any kind of salary transparency, while 7% provide salary information on a need-to-know basis.