How companies save money with Fair Pay
When it comes to Fair Pay, we often encounter the same misconceptions. For example, adjusting salaries is much too expensive for a company, whereas in fact, the opposite is true! Fair Pay has an immensely positive effect on all aspects of the business – from appreciation to motivation. And it saves a lot of costs.
Fair Pay is not just a free choice but has long been a legal duty for organizations in many countries. But even beyond this obligation, it’s worthwhile for companies to implement non-discriminatory pay structures as consistently as possible. As long as unjustified differences in incomes remain a blind spot, costs will spiral unnoticed. Conversely, Fair Pay saves a lot of money and has a domino effect on all other aspects of the organization. Here are the ten most important effects of Fair Pay:
1. Less churn
When all employees have the same opportunities, they are more satisfied. Greater satisfaction, less churn.
2. Higher motivation
For the same reason, employees are more motivated and productive.
3.Greater customer satisfaction
A more satisfied workforce has an impact on productivity and the quality of its products or services. A satisfied workforce means satisfied customers.
4. Better reputation
The company’s ratings on the job, product, and service portals will improve. The company will have a better reputation in the long term.
5. Better positioning given the shortage of skilled workers
Word will spread to skilled workers, for whom the company will become more attractive as an employer.
6. Becoming more attractive to the next generation
Younger employees are known for eschewing compromise. Unlike their parents and grandparents, they attach great importance to fairness and an employment relationship on an equal footing. The company will also become more attractive to junior staff.
7. Greater diversity
It’s now common knowledge that diverse teams work more successfully. So companies often invest a lot of time and money in measures designed to increase diversity. But the success of these measures is usually difficult to gauge, whereas Fair Pay remains the essential prerequisite for equal opportunities in businesses. This can be read and measured very easily on the payslip.
8. More women in leadership
If equal opportunities are ensured through Fair Pay, the proportion of women at all hierarchical levels will also increase significantly in the long term.
9. Better investment relationships
If a company can prove the success of its measures, ensuring greater productivity and quality, while demonstrating compliance with the SDGs through Fair Pay, the organization as a whole becomes more attractive for female and male investors, who are placing greater value on sustainability.
10. Major cost savings
Being more diverse and inclusive in all areas of the business, making the company more attractive to young talent and new professionals does not only make for happier customers, stakeholders, and investors. Fair Pay also saves a lot of costs internally.