6 Ways Leaders Can Ensure Pay Equity
How should leaders approach pay equity? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
This is such an important question and one that merits some serious consideration. With so many individuals exiting organizations at rapid rates, we have to address the root causes of their departures. Unfair treatment and inequitable pay are two of the more common.
In order to ensure pay equity, leaders should:
- Create a plan/formulate goals with each and every employee at the start of the year. This process will ensure that leaders have a tool to gauge individual performances. Likewise, in order to perform well, employees need to know what they will be measured on.
- Publicize other desired, non-goal related traits (including soft skills) in advance. This action will provide parameters around the soft skills that leaders will measure and that employees can strive for. Further, performance in this area should be rated and scored by several individuals in the employee’s work flow to get a more balanced assessment.
- Conduct periodic reviews to ensure that employees are being paid equitably according to their position, tenure, and performance. This also involves ensuring equity across genders and ethnicities.
- Discuss salaries/merit increases with employees individually. These sessions should allow the employees to provide feedback on their performance/expectations.
- Provide an avenue for employees to discuss/report inequities in pay. It can be useful to establish an an unbiased committee who is available to review claims of pay inequity/bias.
- Offer additional compensation for top performers. It seems that many top performers don’t necessarily get top salaries which is demotivating for them and others. Implementing a system for identifying and rewarding top performers can help ensure more equity for those who outperform (and we want to keep them motivated).