Part three: Fair Pay Guide
We run practical workshops for organizations to help them articulate their ambitions on equal pay and fair pay more broadly, as part of their approach to pay management and diversity, equity and inclusion (DE&I). Attendees can include talent, DE&I and legal colleagues as well as corporate and local rewards teams. We cover the key internal and external context, including the EU directive and what leading companies are doing. Within this context we confirm which aspects of fair pay matter most (is it pay equity, living wage, benefits for all or something else?), and we develop guiding principles and outline priority actions. With respect to equal pay, we build out the organization’s current and desired situation on data, key levers to equal pay (see Part 2: The increasing focus on equal pay in Europe), ownership and transparency – all with the directive and other key regulations in mind. These elements combine to help us produce a road map on equal pay for you to test and refine with other key stakeholders.
To gain an accurate and comprehensive view on the current situation we use advanced (multi-variate regression) analytics to carry out a full equal pay review across all key or relevant markets. We can do this under legal privilege, if required. We develop the methodology with you, based on leading practices and the need to balance global consistency with local flexibility. We identify where there are equal pay gaps, which ones you need to worry about, what individual pay changes you need to consider and the costs, alongside the improvements needed to pay structures and practices to remove future equal pay issues. Our analytics cover all pay elements, along with gender, race/ethnicities and age, and are adaptable to your size and geographic footprint. While we expect to lead the initial set of analytics, we can equip an organization with the methodology and third-party software to carry out future analyses as part of your ongoing pay governance.
We work through the individual employee remediation plans (which employees to prioritize, the level of adjustment and timings) with you and legal counsel and then move to engagement with local teams. With respect to improvements in pay structure and practices, we work with you to identify which will have the highest impact, which can be introduced in the next pay round, and which need to be incorporated into longer-term reward plans, for example, improvements in job architecture.
For many clients this is a journey. It can take several years moving from a local compliance-driven approach to a globally integrated and sustainable approach to equal pay that meets the needs of the organization, employees and regulators. We support clients in building local buy-in to the approach, developing local tools and manager guidance, clear accountability, measures and reporting – all to support increased transparency.
Developing a strategy for how and what you will communicate is essential in the success of your journey. Expectations of pay transparency and the types of internal and external stakeholders you need to communicate to are growing. We work with organizations in crafting how, when and where to tell their fair-pay story as well as how to integrate it with their broader equity, diversity and inclusion agenda.
| Title | File Type | File Size |
|---|---|---|
| Making an Impact: Fair Pay Guide | 6.2 MB |
