Robert Sheen is founder and CEO of Trusaic, a purpose-driven technology company focused on pay equity, DEI and healthcare.
When Megan Rapinoe announced her retirement from soccer, her statement was quintessentially Megan. She was filled with joy and appreciation, thanking her family, friends, teammates and coaches for a lifetime of support. She also expressed gratitude for having been one member of “a generation of players who undoubtedly left the game better than they found it.”
Being buoyant, quick to turn the spotlight on others and enduringly focused on improving the world around her is what made Megan a great teammate on and off the pitch. These qualities are also what make her a great teammate at Trusaic, where she serves as our chief equality officer. Through this role, she’s able to continue the fight for pay equity she’s been championing for years—a fight that’s far from over.
Pay Equity Is A Challenge Across Many Industries
In the athletics world, gender-based pay gaps persist in basketball, tennis and many other sports, and the situation is even worse on the business side of the industry. A McKinsey & Company survey found that women working in sports business roles suffer from a lack of inclusion that’s worse than all other industries. In a workplace dominated by men, these women often experience negative effects like limited development, advancement and retention.
Of course, the sports world is a reflection of the world at large, where pay equity remains elusive. According to a recent Forbes Advisor article, the average woman earns just 82 cents for every dollar earned by a man. This disparity is greater for women of color; African American women earn 60 cents and Latinas earn 55 cents for every dollar earned by white, non-Hispanic men.
Fortunately, pay equity is improving worldwide. In Europe, the European Union approved a new pay transparency directive for its member states aimed specifically at closing the gender pay gap. In America, more and more states are adopting pay transparency and equity legislation. And in countries such as Norway, Switzerland, Germany and Canada, crucial transparency and equity trends are gaining momentum.
But these improvements aren’t happening quickly enough. The Institute for Women’s Policy Research warns that it will take until 2059 for women to reach pay parity if change continues at the same pace. And based on current trajectories, it’ll take even longer for women of color—potentially over a century!
That’s simply not good enough, and that’s why I’m so thankful Megan is continuing her critical work at Trusaic. She’s championing our combined mission of ensuring equitable pay for every working person, regardless of gender, race or ethnicity.
Be A Pay Equity Champion
There are a host of business benefits that result from achieving and openly championing pay equity. For example, you’re twice as likely to attract new talent to your organization when you promote and offer pay equity. Innovation is likely to be more attainable, and you’re 1.6 times more likely to meet or exceed financial targets. Beyond these benefits, pay equity is a legal requirement in a growing number of countries. Failing to comply can result in stiff penalties, as well as damage to your company’s hard-earned reputation. It can also erode productivity and satisfaction levels, along with your ability to hang on to valued employees.
In order to achieve true pay equity and track your progress, you need to have a clear and reliable view of it. This requires compiling, scrubbing and accurately analyzing all of your compensation data to evaluate your current strategies and practices. With data-backed insights, you can better determine fair salary ranges, report more accurate pay data to agencies when necessary and reduce your risk of costly compensation-related legal actions. Not all organizations possess the level of knowledge and proficiency to do this effectively, so some choose to partner with an external expert.
4 Steps You Can Take Toward Pay Equity
While your organization’s specific situation and needs will drive the specifics of your equity strategy, here are some crucial steps you’ll likely take.
1. Perform A Compensation Audit: This analysis will need to encompass your entire workforce so you can have a clear picture of pay gaps and risk areas across employee groups throughout your organization.
2. Analyze Market Data: Looking at current data in your industry will help you understand how you compare against the pay ranges of other organizations.
3. Uncover Root Causes: If you locate pay disparities, you can use data analytics to help pinpoint any present biases, faulty systemic processes and other contributing factors.
4. Customize Budget, Remediation And Communication Strategies: To make steady progress toward your pay equity goals, you must develop a tailored budget and remediation strategy that addresses pay disparities over time. You’ll also need clear, compelling messages for reporting and communicating to employees and other stakeholders.
Gender-based equity gaps are uncomfortable reminders that bias persists within many organizations. This is why equity advocacy work like Megan Rapinoe’s will continue to be so vitally important—particularly when it comes to the development, advancement and compensation of women and all protected classes. But remember, achieving pay equity isn’t a one-time process. You’ll need to continuously monitor your pay equity profile and ensure your organization remains compliant with evolving pay transparency laws.
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