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- #69: Closing the Pay and Benefits Gap
#69: Closing the Pay and Benefits Gap
The One Minute For: Current Pay Landscape, Ensuring Fair Benefits, Strategies for Gender Salary Equality
Art Voloshyn
July 16, 2024
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IN TODAY’S EPISODE 👀
Audio Version of This Episode
 4:41 |  Audio: #EPISODE 69 |
THE ONE MINUTE TO RESEARCH 🔎
by Beqom
 | Pay Equity Challenges and Actions |
1:13 | Audio: #EPISODE 69-1 |
Although more companies say they’re striving for pay equity and transparency, about 34% still don’t have a pay equity strategy in place. This was revealed in a study by Beqom, which surveyed 875 U.S. and U.K. salary decision-makers. The results include a detailed breakdown by industry.
Of those companies with a strategy in place (64%), nearly half (49%) say their approach is hurting their ability to attract talent.
Pay Equity Issues Uncovered:
65% wage discrimination
58% below-market salary ranges
57% promotion disparities
55% pay compression
52% lack of performance reviews
50% gender pay gaps
How U.S. Employers Are Taking Action:
82% listing salary ranges within new job descriptions
69% increasing salaries based on performance
69% implementing a process for continuous feedback
68% increasing salaries due to inflation and the cost of living
66% increasing pay to correct existing pay gaps and salary inconsistencies
If you'd like to share your thoughts on this or any other topic, join our community.
THE ONE MINUTE OF EXPERT VOICE 🎙
by Farheen Dam
 | The Importance of Equitable Benefits |
1:19 | Audio: #EPISODE 69-2 |
While benefits are a crucial part of compensation, there's a significant gap in transparency and equity in the United States. Farheen Dam, North America Health Solutions Leader at Aon, emphasizes the need for tailored benefits that meet the unique needs of every employee.
About Benefits Affordability:
 | “Did you know that 22% of U.S. employees are spending 10% or more of their income on health care? In addition, half of Americans are unable to pay for a $1,000 unexpected medical bill within 30 days; this increases to about 66% for people of color and low-income workers. To address this affordability challenge, we’re helping employers design subsidy approaches.” |
About Inclusive Policies:
| “72% of employers currently cover fertility treatments, but many require a medical diagnosis of infertility to qualify for the benefit. There are many types of families – same-sex couples, single parents by choice, etc. – who will never meet this criteria. So why can’t we remove the medical necessity requirement and, instead, provide the same financial allowance for adoption and surrogacy so that all paths to parenthood are included?” |
What challenges have you encountered regarding benefits transparency and equity in your organization? How can companies better address the unique needs of diverse employees?
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|
LET’S PRACTICE 🧪
 | How to Close the Gender Pay Gap |
1:15 | Audio: #EPISODE 69-3 |
The gender pay gap remains a significant issue. Despite decades of advocacy, women still earn less than men for equivalent work. To address this disparity, consider these concrete, actionable strategies to promote equity in recognition, rewards, and promotions.
How to Do It
1. Implement Transparent Pay Structures.
Publish pay ranges for roles, base compensation on objective factors like skills, experience, and performance, and regularly review and adjust pay to maintain fairness.
2. Conduct Regular Pay Audits.
Analyze pay data, identify patterns of disparity, and implement targeted solutions to ensure equal pay for equal work.
3. Promote Flexible Working Arrangements.
Mitigate the motherhood penalty and allow women to maintain career progression and advancement opportunities.
4. Offer Equal Opportunities for Advancement.
Implement mentorship programs, leadership training, and clear, gender-neutral criteria for advancement. Senior leaders should advocate for high-potential women to accelerate career progression.
5. Standardize Performance Evaluations.
Develop standardized, objective criteria for performance evaluations to minimize subjectivity and bias. Regular calibration meetings can ensure consistency and fairness in performance reviews across the organization.
What strategies has your organization implemented to address the gender pay gap? Have you noticed any significant changes in employee satisfaction or performance as a result?
Share your experiences and insights with our community!
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