Effectively address pay equity

This has prompted many leading organisations to take a more active and strategic role to ensure equity in their workforces. 

The opportunities, challenges and barriers organisations may face when effectively addressing pay equity include:

• Responding to intensifying pressures from governments, activist investors and employees to offer equal pay
• Attracting and retaining a diverse mix of high-quality talent by ensuring equitable career opportunities and pay equity
• Consistently assessing and addressing pay inequity across different geographies

To address these issues, organisations should include pay equity analysis as a core component of their annual compensation reviews and DEI processes. They should also proactively prepare disclosure of pay and rewards, and strive to accelerate workforce diversity.

Locally and globally, Mercer helps organisations effectively address pay equity and ensure fairness in their rewards. Based on statistical methods (that conform to the highest standards), our approach is designed to have a significant and sustainable impact. It is informed by many years of collaboration with the world’s leading companies. 

Key features:

• Drill down into pay gaps
  Review pay gaps by gender and race/ethnicity, and investigate pay distributions group by group.
• Consider remediation options
  Experiment with different adjustment strategies and create customised strategies for specific groups.
• Assess impact
  Evaluate the impact of actions on pay gaps and budgets, review individual-level outliers, and document special-case situations.