1. What Is Pay Equity?
Let’s start by clarifying what we’re talking about, especially since we’re introducing a little different take on pay equity.
Defining Modern Pay Equity
Pay equity is traditionally defined as equal pay for comparable work. While this is accurate, any effective analysis of pay equity requires consideration of what’s happening both inside and outside your organization and an understanding of why people are paid what they are paid.
With that in mind, pay equity is defined as this: equal pay for comparable work that is internally equitable, externally competitive, and transparently communicated.
This holistic view of pay equity shifts compensation analysis from pure market pricing to a broader equity approach that is sustainable, ...
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