It is a widely known fact that women typically earn less than men for performing the same type of work. Because this gender disparity affects employee morale, your company needs to create a gender-neutral salary structure to ensure equal pay for equal work. Here are some steps you can take to ensure your female employees get paid the same as your male employees for similar roles.
Define Your Pay Structure
Document each job description based on skill level. Include everything from accountability to specific technical skills. Use national averages or benchmarking reports from your industry to complete a comprehensive market pay analysis. Use your analysis to develop a pay scale by level and standardize annual pay adjustments. Use nationwide averages and your company’s specific targets to establish salary and bonus levels associated with reaching each target. Let employees know monthly where they are in reaching those targets and what they can expect in terms of income.
Determine Criteria for Promotion
Define each level within the company, then document the skills necessary to move to the next level. Work with each employee to develop a career plan in line with their goals to move up within the organization. Show what needs to be done to reach their desired role.
Pay for Performance
Create a standard performance review process to measure each employee by the same criteria. Help each employee align their personal goals with your company goals. Conduct biennial reviews to maintain open communication from leadership down. Provide bonuses to employees reaching specific benchmarks. Those who perform above expectations may earn a higher bonus and pay increase.
Communicate the Process
Begin each quarter with a refresher on your process and parameters. Remain transparent and answer questions. Ensure your employees understand how and why their compensation is determined. They will be less likely to have adverse feelings if they are paid less than a co-worker who is performing at a higher level.
Be Transparent About Pay Data
Provide solid data to show employees are being paid according to their level of responsibility and work performance. If a gender disparity is discovered, take action to correct the issue.
Conduct Equal Pay Audits
You can determine whether male and female employees are doing equal work, and if so, whether they are receiving equal pay and benefits. If they are not being paid the same for the same work, determine why. If the reasons are unlawful, take action to remedy the situation.
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