Like pay equity, opportunity equity is the right thing to do and integral to create workplace equality for all. Opportunity equity is the latest strategic initiative to encourage progress in closing pay gaps and creating gender parity. Incorporating the steps below can help to take steps towards an inclusive culture that promotes opportunity transparency:
Create an inclusive culture: Inclusion is good for business. Commit to DEI (Diversity, Equity, and Inclusion) initiatives that promote equal opportunities across your workforce. Josh Bersin states that the real key to diversity and inclusion is a CEO focused on "equity, psychological safety, a culture of inclusiveness, and awareness that a diverse team will outperform one that is not." The WEF also notes that companies with more women in leadership roles are 25% more likely to have above-average profitability.
Emulate gender parity successes: At a national level, Iceland has topped the WEF's Global Gender Index for 14 years and is the only country to have closed over 90% of its gender gap, at 91.2%. To expand career and promotional opportunities for women, Iceland's Gender Equality Act includes a mandatory quota of 40% of women on boards. At company level, BHP's South Flank mine has overcome gender barriers in a male-dominated sector. Investing in inclusivity, adopting a data-driven approach, and setting gender equity targets have been critical to its success.
Adopt a policy of pay transparency: Half of all US job postings now include pay data regardless of compliance requirements. Including salary information in job postings creates a culture of transparency and attracts more qualified job applicants to your open positions. To ensure compliance with legislation, create appropriate templates and checklists for job listings.
Ensure equitable compensation: An intersectional pay equity audit is the most effective way to identify pay disparities within your organization. Start by compiling and analyzing workforce data from your human capital management platforms. To ensure the accuracy of this data, specialized pay equity software can help to provide a clear picture of pay gaps. Trusaic PayParity conducts a pay equity audit at the intersection of factors such as gender, race/ethnicity, age, disability, and more. The results of the audit identify risk areas for remediation and pay gaps within every employee group and at every level in your workforce.
Identify the causes of wage disparities: Issues that affect pay equity can vary. For example, certain groups of employees may not have equal access to jobs or promotions, or do not progress to higher roles. Identifying these issues helps HR to review career progression policies. Pay equity software can help employers to identify factors such as unconscious bias or processes that may be affecting, or causing, pay disparities.
Making pay explainable: Analyze your salary range and compensation, to break down and justify each element for each position. For example, is the base salary competitive and commensurate with employee skills? Employers must also be ready to explain how they differentiate and define performance in setting base salaries.
Select equitable pay ranges: Integrate market data with the outcome of internal pay equity audits. Trusaic Salary Range Finder® can determine competitive and fair salary ranges by overlaying internal pay equity audit data with that of external labor market data. Fair salary ranges are instantly determined for your job listings by combining the two data points.
Gain employee insights: Creating a culture of transparency involves your employees. If a pay equity audit suggests your organization has no pay equity issues but your employees disagree, your company has a perception gap. A sentiment survey can help to resolve this by providing key insights.
Share job listings across your workforce: Stay ahead of opportunity transparency legislation. Inform your employees of ongoing career progression opportunities and relevant application criteria.
Create clear and detailed career progression policies: Removing mistrust or ambiguity around promotion opportunities helps to build trust and creates a more engaged workforce. By providing clear criteria for HR functions to adhere to, unconscious bias can be reduced, or eliminated.
It is highly probable that opportunity transparency will follow pay equity in becoming a key strategy to address gender pay gaps and inequities. As the EU sets the pace in opportunity transparency in 2024, the US is likely to see more jurisdictions follow the example of Colorado and Illinois.
High performance organizations and enterprises can become early adopters of this movement by committing to pay equity and opportunity transparency as part of an inclusive company vision and mission.