BEST PRACTICES FOR FAIR PAY

How can employers promote pay equity? Cheryl Pinarchick, an attorney with Fisher Phillips in Boston, recommends that companies take the following steps:

• Create transparent compensation systems and objective metrics around recruitment, performance, advancement and compensation to help ensure consistency.
• Communicate regularly and honestly with employees about the metrics and their progress, to build trust within the entire organization.
• Train all decision-makers about the compensation system, and teach them how to properly document decisions.
• Consider implementing standard pay ranges or guidelines for each position or job classification.
• Keep job descriptions up-to-date to ensure that the work being done and the skills required to do the work are accurately reflected. —L.N.-P.

Lisa Nagele-Piazza, J.D., SHRM-SCP, is SHRM’s senior legal editor.

Illustration by Adam Niklewicz.

https://www.shrm.org/hr-today/news/hr-magazine/spring2020/pages/importance-of-pay-equity.aspx#:~:text=HR%20should%20keep%20pay%20equity,one%2Doff%20increases%20and%20incentives.