Skip to main content
  • Personal
  • Business
  • Foundation
    Close
    • Global
    • India
    • MENA
  • mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
SHRM Business
  • HR Solutions
    • Elevate HR Skills & Organizational Capabilities
      Empower Talent Management & Acquisition
      Support AI Adoption & Execution
      Manage Organizational Change
      Create an Inclusive & Diverse Workplace
      HR Tools Marketplace
  • Leadership Solutions
    • Linkage

      Talent and leadership development solutions that drive measurable business results.

      • Advancing Women Leaders
      • Accelerating Purposeful Leadership
      • Linkage Institute
      Executive Network

      The executive support you need for tackling obstacles that lead to meaningful workplace change.

      • About EN
      • Executive Insights
      • EN Event Experience
  • Brand Partnerships
    • Advertise With Us
      Exhibit & Sponsor Events
      Become a Recertification Provider
      Executive Positioning
  • Events & Insights
    • Resources
      • Assessments
      • Corporate Membership
      • News
      • Research
      Attend as a Team
      • Certifications & Learning Systems
      • Conferences & Events
      • Education Programs
      • Training & Development
Buy Team Packages
Close
  • Personal
  • Business
  • Foundation
  • HR Solutions
    back
    HR Solutions
    • Elevate HR Skills & Organizational Capabilities
      Empower Talent Management & Acquisition
      Support AI Adoption & Execution
      Manage Organizational Change
      Create an Inclusive & Diverse Workplace
      HR Tools Marketplace
  • Leadership Solutions
    back
    Leadership Solutions
    • Linkage

      Talent and leadership development solutions that drive measurable business results.

      • Advancing Women Leaders
      • Accelerating Purposeful Leadership
      • Linkage Institute
      Executive Network

      The executive support you need for tackling obstacles that lead to meaningful workplace change.

      • About EN
      • Executive Insights
      • EN Event Experience
  • Brand Partnerships
    back
    Brand Partnerships
    • Advertise With Us
      Exhibit & Sponsor Events
      Become a Recertification Provider
      Executive Positioning
  • Events & Insights
    back
    Events & Insights
    • Resources
      • Assessments
      • Corporate Membership
      • News
      • Research
      Attend as a Team
      • Certifications & Learning Systems
      • Conferences & Events
      • Education Programs
      • Training & Development
  • Buy Team Packages
    • Global
    • India
    • MENA
SHRM Business
mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
Close

  1. Executive News & Insights
  2. How Organizations Can Take a Systematic Approach to Pay Equity
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
News

How Organizations Can Take a Systematic Approach to Pay Equity

March 11, 2024 | Jenny Donovan

two employees looking at book in office

Why do companies continue to struggle with pay equity, more than 60 years after the passage of the federal Equal Pay Act (EPA)? In 2022, U.S. women had median annual earnings that were only 84 percent as much as those for U.S. men, according to the U.S. Department of Labor. Meanwhile, a 2022 study sponsored by UKG found that less than half of employees (41 percent) believe their employers have successfully achieved pay equity, even though 74 percent of executives consider pay equity a moderate or high strategic priority.

Perhaps the problem isn’t a lack of awareness or support among business leaders. Instead, the issue may be that organizations are trying to solve the issue on a tactical level when a more strategic, systemic approach is needed.

Starting with Pay Equity Reviews and Audits

Understanding an organization’s pay equity challenges begins with data. Yet new SHRM research finds only 70 percent of employers conduct pay equity reviews/audits to identify possible pay differences between employees performing similar work that cannot be explained by job-related factors. These reviews may examine a variety of characteristics that might affect pay differences:

  • 80 percent examine gender.
  • 68 percent examine race.
  • 62 percent examine age.
  • 27 percent examine disability status.
  • 19 percent examine sexual orientation.
  • 30 percent examine other characteristics, such as education, experience, job responsibilities and length of service.

A wide variety of pay equity tools are available to help organizations identify and address gender pay gaps within their workforce, but SHRM research finds just 46 percent of employers are familiar with these tools. Half of those familiar with pay equity tools agree that these tools provide trustworthy and accurate measures of the gender pay gap at their respective organizations. Of those familiar with the tools, 45 percent say they’ve either used the tools themselves or someone else in their organization has.

Going Deeper to Prevent Gaps

Collecting data is important, but closing the pay gap requires more than just measuring the scope of an organization’s pay equity issues. Pay equity is about paying people the same amount for the same work. But pay gaps are also created through inequities in hiring practices, performance management, and promotions.

“Doing a pay equity analysis and then correcting and remediating issues is a fix to an illness,” said Diego Rivera, a Washington, D.C.-based senior pay equity consultant and domain expert at Syndio , a pay analytics platform. “Be proactive. Avoid having the illness in the first place. Ask yourself, ‘What can I do so that I don’t have a pay equity problem?’ ”

“If you want to get at the root issue of pay gap issues, it’s a combination of activities. It’s holistic,” said Joanna Colosimo, vice president of workforce equity and compliance strategy at DCI Consulting Group in Washington, D.C. “It’s not just pay equity, it’s recruitment, how talent is distributed, promotional activities. Are we putting women or minorities in higher-paying positions? Are we funneling them through the system?”

There are several proactive things organizations can do to help close pay gaps, but each requires long-term strategic focus and leadership buy-in.

  • Addressing Implicit Bias: Individual biases can affect a variety of pay-related decisions, including hiring, raises, bonuses and promotions, potentially creating additional barriers that candidates must clear to demonstrate that they are qualified. These biases should be treated as an organizational issue, rather than a personal failing.
  • Reviewing Policies: Organizations should create checks and balances in their policies that account for bias without relying on individuals to recognize it in themselves. Make sure policies are reviewed regularly. Consider each policy in its broader organizational context to identify how different rules and regulations can reinforce or undermine one another.
  • Creating Opportunities: As important as fair compensation policies are, they can’t take the place of mentorship and other resources that create opportunities for employees to advance in their careers and advance their earning potential. Find ways to provide systemic access to opportunities to learn, grow and be mentored on the job.

Understanding the Benefits

Pay equity is often treated as a compliance measure in HR, but it can also increase efficiency, creativity and productivity by improving recruitment, retention and engagement, leading to a stronger organization and a healthier bottom line. According to a study by Indeed, 81 percent of workers are more productive and engaged when they perceive themselves as being paid fairly. Pay equity also helps with recruitment, attracting top talent, and increasing diversity and innovation. That same study from Indeed found that 75 percent of employees are more likely to apply for a job when the employer is known for pay transparency.

“How do we gain from that diversity—not just degrees and skill sets, but perspectives?” said Rivera. “Pay equity allows all of those different perspectives to sit at the same table and for those synergies to start evolving. And that’s where great ideas emerge.”

 

Pay Equity
Pay Transparency


Artificial Intelligence in the Workplace

​An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.



Related Content

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
Our Brands

SHRM Foundation Logo
SHRM Executive Network Logo
CEO Circle Logo
SHRM Business Logo
SHRM Linkage Logo
SHRM Labs
Overview

  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Post a Job
Advocacy

  • Workforce Development
  • Workplace Inclusion
  • Workplace Flexibility & Leave
  • Workplace Governance
  • Workplace Health Care
  • Workplace Immigration
  • State Affairs
  • Global Policy
  • Advocacy Team
  • Take Action
  • Generation Cares
  • The Section 127 Coalition
Member Resources

  • Ask An Advisor
  • SHRM Newsletters
  • SHRM Flagships
  • Topics & Tools
  • Find an HR Job
  • Vendor Directory

© 2025 SHRM. All Rights Reserved
SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer

Follow Us

  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube

  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now