5 Tips For Narrowing Pay Gaps

The history of American labor can be told as a struggle for pay equity, punctuated with landmark legislation like the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. The former requires employers to provide equal pay for equal work and prohibits pay discrimination based on gender. Title VII of the Civil Rights Acts extends that anti-discriminatory policy to cover protected groups based on race, color, religion, or national origin.

But despite these major strides towards pay equality, there still exist persistent wage gaps across gender lines and other protected groups. Identifying and eliminating pay discrepancies ultimately falls on the shoulders of the employer. Here are five key techniques to help you narrow pay gaps and promote a more equitable workplace.

Double-Check Your Job Descriptions

If pay gaps are caused when workers aren’t being equally compensated for the same work, employers need to firmly define what the “same work” means. That begins with more comprehensive, detailed job descriptions. It seems almost too simple, but thorough job descriptions allow employees to understand exactly what their roles are, how they compare to others, and why others might be compensated more or less.

Benchmark Against the Industry

Many industry groups survey companies in their sector about the salary ranges they offer for certain jobs. You can typically get access to these results by participating in the survey yourself, and see how your compensation stacks up against similar companies.

Establish Clear Promotion Policies

Companies that are transparent about detailed requirements for a raise or promotion can prevent pay disparities when employees move up the ladder. This practice doesn’t just promote fair and consistent upward mobility, but also provides clear goals and more incentive to work toward the specific criteria.

Conduct Pay Audits

Companies that regularly perform audits of their entire pay structure can help stamp out pay disparities before they become an issue. If a discrepancy is found, HR departments can identify if the root cause is bias, a difference in work, or another factor, and determine the best course of action.

Invest in Hiring Team Training

It’s important for those managing payroll to understand statutes and laws that are applicable to states or employee classifications. Training your hiring team on these rules and regulations, as well as educating them on other ways bias enters the hiring and compensation process, can help eliminate pay discrepancies before they arise.

Originally featured in UBA’s February 2020 HR Elements Newsletter.