Getting started with Pay Equity

January 23, 2023
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Pay equity is the practice of ensuring that all employees receive equal pay for their work. It's a term that's been growing in popularity recently, and it's hard to deny the importance of this issue.

When it comes to paying equity, the laws vary by state and country—but generally speaking, they're designed to protect women from discrimination in terms of wages. Laws have been passed in many states and countries in recent years to ensure that women are paid fairly for their work, but there are still many cases where women are paid less than men for the same job.

To address these issues, companies need to ensure that each employee receives equal pay for equal work (or close enough), regardless of gender or race. For example, you need to pay your female employees fairly for the same work as their male counterparts. In that case, you could be violating federal or state laws against pay discrimination.

How to Ensure Proper Distribution of Pay

To ensure compliance with these laws, organizations should also follow best practices outlined by organizations such as the National Women's Law Center (NWLC). These best practices include:

1. Create a Pay Structure- Companies can create a proper structure before deciding the compensation. For example, job level, experience, education, and skills must be considered. 

2. Communication- Once the structure is created, it should be conveyed to the employees briefly. For example, the measures taken to determine the pay scale include promotion criteria and bonuses.  

3. Equal Pay Laws- There are certain laws and regulations for equal pay in effect that needs to be considered and complied with efficiently.

4. Feedback and Reviews- To ensure the following policies are fairly applied, proper analysis, reviews and feedback must be collected. 

5. Address Issues- If you encounter any issues around the pay scale and compensation given to employees, you can address them and take necessary steps to ensure the employees feel valued eventually.



Pay equity is key to ensuring that women are not discriminated against and are competing on equal terms with men in the workplace.

At the same time, it's vital to distinguish pay equity from the broader issue of income inequality, so it's important to understand which topics you should look out for when attempting to achieve pay equity.

Find out how Compport can help you manage all your Pay Equity process, book a demo today!

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