How pay transparency and pay equity impact total rewards

Contributor

Gordon Frost

Global Rewards Solution Leader
Contributor

Lea Lonsted

Pay Equity & DEI Leader Europe & UK
Contributor

Sean MacHale

Partner, Europe and UK Rewards Leader, Mercer
Contributor

Tauseef Rahman

Global Pay Transparency Solutions Leader

The Transforming for the future podcast series features Mercer’s consultants who are helping organizations stay ahead of the curve by embracing transformation, exploring new ways of working and reinventing their employee experience. We’ll discuss the most pressing issues facing leaders today and how to shape the future of work so that your business and people thrive.

This episode spotlights pay equity within the context of total rewards. Discover how to strategically align these to crucial elements of your employee value proposition to ensure that your overall total rewards philosophy and programs align with the principles of fair pay and support your pay equity objectives. Learn about the EU Directive on Pay Transparency and Equal Pay, and identify the secrets to successful implementation through change management, empowering and engaging employees with a greater understanding of your total rewards offering.

We will discuss this further with our host, Gord Frost, Global Rewards Leader, Lea Lonsted, DEI & Pay Equity Leader for Europe and the UK, Sean MacHale, European Rewards Leader, and Tauseef Rahman, Career Partner.

Interesting moments from the interview:

Effective Implementation Strategies

Change management and employee experience should be considered from the start to ensure successful implementation of pay fairness and equity initiatives.
Impact of Fair Pay

Fairness in pay and pay equity can demonstrate a commitment to treating employees with dignity and respect. It can foster a sense of trust and loyalty to a company. This, in turn, can lead to higher levels of morale, productivity, engagement, and retention.
Comprehensive Pay Equity

Pay equity and transparency go beyond salaries. Organizations should consider pay equity from a holistic perspective, including base salary, total cash, total direct, bonuses, equity, benefits, and retirement.
Closing the gap

Organizations should prepare by establishing job architecture, building pay ranges, and identifying and remedying any pay gaps. Balancing a global approach with local compliance needs is key.