Effectively address pay equity
Pay equity has become a critical priority globally
This has prompted many leading organizations to take a more active and strategic role to ensure equity in their workforces.
The opportunities, challenges and barriers organizations 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, organizations 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 organizations 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.
Securing local compliance supportIt is imperative to meet complex current and emerging local compliance requirements by jurisdiction. Mercer offers local expertise to support regulatory submissions and other required activities.
Conducting equal pay analysisWe examine roles with large average pay differences between genders and provide discipline for further review within highlighted roles.
Performing pay equity analysisWe highlight and measure unexplained pay gaps and develop strategies to close them. We advise on targeted pay adjustments and interventions that focus on root causes. This work can inform both required and voluntary ESG disclosures.
Mercer’s pay equity calculator
- 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 customized 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.