The Human Side of Numbers and Pay Equity

March 27, 2024

Your employees are not mere statistics; they are real people at the core of your organization. Prioritizing pay equity is crucial to ensure fairness and equality. Aim to not only meet market standards but also provide an environment where every team member feels valued and motivated. It is not just about equal pay, but recognizing and celebrating the unique contributions that each person brings to your diverse workforce.

This article focuses on the human side of pay equity and highlights the benefits of Talentia HCM software. Read on to discover four ways to promote pay equity and fair compensation for your team.

1. Perform continuous pay equity reviews

Fairness is a key factor in building trust and engaging employees. Retaining talented individuals is essential for sustainability. Moreover, companies that are viewed as ‘talent-friendly’ and forward-thinking are more likely to have loyal employees. By performing more frequent pay equity reviews, you can keep track of internal data as salaries change. Analyzing compensation allows your organization to start with a more precise, ongoing picture, creating a better environment in which to make future pay decisions without causing new inequalities.

2. Reward performance

According to the HR Executive, inflation, rising costs of living, retirement and personal debt are at the top of the list of what keeps employees awake at night. It is not just the pay that matters, but whether it is fair. With the rise of pay transparency, employees are starting to realize what they should be paid, especially since it is easier to find out what their colleagues are earning. Rewarding individuals for their performance and skills now matters more than ever. What is more, top-performing organizations tend to have a strong focus on active listening and clear communication.

3. Offer more than just financial incentives

In November 2022, Gartner released a press statement revealing that less than 33% of employees surveyed felt they were being compensated fairly, while only 34% believed that their pay was adequate. In addition to financial incentives such as salaries, bonuses and perks, it has been proven that employees who are actively engaged in their own professional and personal development are more likely to succeed. By providing more opportunities for growth and advancement, you can create stronger teams and improve engagement.

4. Save time and eliminate errors with a single source of truth

Talentia Pay Review is a powerful collaborative tool for HR and managers that automates and simplifies the pay equity process. It can help you find the right balance between budget constraints, talent engagement and retention policies. HR intelligence provides reporting and dashboards for all employee data to optimize administration management. This tool will allow you to communicate, explain and demonstrate that pay is equitable.

Talentia HCM is your single source of truth to support pay decisions. Leverage performance reviews, potential assessments or individual contribution metrics to help your HR department develop a fair compensation policy. Simply input your company’s data to make accurate and informed decisions.