Pay discrimination has been illegal since 1962. However, Heather Bussing, an employment attorney and industry analyst, argues that legislation alone hasn’t eliminated it: “Law is not enough.”
In Start With the Money: Pay Equity as the Foundation of Fairness, Bussing’s Women in Tech session at HR Tech, she highlighted a March 2024 report from the Economic Policy Institute, revealing that there has been little significant progress in closing the pay gap over the past 30 years.
The report shows that while the gap narrowed between 1979 and 1994, this was mainly due to stagnant wages for men rather than substantial wage growth for women. Since then, the gap has remained largely unchanged.
Pay equity: money and math
Bussing explained that women, especially those who have or may have children, often experience pay discrimination. “We are not going to change the fact that women have children,” said Bussing. Yet, employers must “make it possible for women to work and succeed.”
However, rather than focusing solely on the root causes (such as parenting), employers should prioritize addressing the outcome: the pay gap, which is easy to identify. “It comes down to money and math, and organizations are great at that—that’s their specialty,” said Bussing.
She added that the solution to pay equity isn’t about changing leaders’ attitudes but paying employees equally for equal work. “It’s not complicated,” she emphasized. Bussing also pointed out that according to the EEOC, pay discrimination—at its core—is simply discrimination.
Under the federal Equal Pay Act, employers who willfully violate the law may face fines of up to $10,000. While payouts to affected employees can add up, fixing the problem itself isn’t that costly, said Bussing. However, some HR leaders are unsure how to proceed.
How to get pay equity right
In July, Bussing published a book on this topic called Get Pay Right: How to Achieve Pay Equity That Works. She pointed out a tip contained in its pages. “My fellow author, Ken Plunkett, the CEO of salary.com, has a brilliant suggestion, and that is figure out how big your problem is and then set aside 10% to 20% of your bonus pool,” said Bussing. This margin can then be used to boost salaries for employees who are paid unequally. She said that after a few years of progress in this area, organizations will achieve internal pay equity, and that will begin to influence the market.
Organizations must accurately compare the work performed by employees, Bussing explained. HR leaders cannot determine if people are being paid equally without first understanding if their work is truly comparable.
To achieve this, abilities, work quality and accountability must be evaluated. However, Bussing noted that many organizations rely on tools like organizational charts, assuming they reflect responsibility. Some also use job titles as shortcuts, but job titles often reflect pay, not the actual work being done. “It’s a good starting point, but you can’t stop there. Otherwise, you’re just comparing pay with pay, not pay with work,” said Bussing, likening this issue to a “self-licking ice cream cone.”
Bussing also emphasized the importance of well-crafted job descriptions—not just descriptions of tasks, but ones that align across roles, allowing HR leaders to accurately compare skills, effort and responsibility. According to Bussing, the HR field and tech industry are actively working on improving this process, with a focus on skills and equity.
Increased enforcement is on the horizon
“I don’t believe the world is against women, people of color or anyone else, but there are things we need to learn and figure out to make workplaces more inclusive,” said Bussing. She stressed that organizations must address these issues—not only because it’s a good idea, but because it’s the law. Bussing pointed to increased enforcement of pay equity, especially with pay transparency regulations. For instance, 19 states have passed laws requiring organizations to disclose salaries.
A recent study by Willis Towers Watson revealed that 75% of surveyed organizations are now posting pay, which is a significant development. “These pay equity laws started being enacted between 2020 and 2023, so we’ve seen substantial progress in a short period,” Bussing noted.
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