The most direct road to equality
Using Fair Pay to cut through the jungle of measures
Workforce shortages, churn, too few women in management - many companies are meeting the many challenges in strategic HR policy with a plethora of measures and instruments. But statistics show that employees with very similar characteristics ultimately make it to the top. Middle-aged, white men with Thomas, Michael, or Stefan as their first name have particularly good prospects for a management position. Yet many companies fail to recognize Fair Pay as the most effective tool for achieving equality and the first step is closing the gender pay gap.
There are people all over the world still earning less than others - in the same company and for the same or equivalent jobs. There are many reasons for this disparity. Whether someone is a man or a woman, whether a person has children, what their origins are, what they believe in, or who they love can all have an impact on salary.
But unfounded differences in income are both unfair and unwise. Fair Pay has an extremely powerful domino effect on all other areas of the business. When all employees have the same opportunities, they’re more satisfied. Motivation increases, churn decreases. All areas become more diverse and inclusive. The company becomes more attractive to junior staff and new skilled workers. This saves a lot of costs internally and it makes for happier customers, stakeholders, and investors. The company as a whole becomes more successful.
Measure for measure
Most companies have long since recognized equality and equality as a business case. They’re investing a lot of money in becoming more diverse and inclusive because you need to do a lot to achieve a lot... But you can’t just throw money and procedures at the problem. Often, it’s barely possible to measure progress and it’s difficult to monitor wins along the way. Yet there’s an excellent way to accurately gauge the success of all your investments: Fair Pay.
Whether it's a mentoring program, unconscious bias training, or the advancement of women - if you measure the success of your initiatives by actively seeking out any enduring income differences, you have a wonderfully objective criterion at your fingertips. Plus, this is also a very effective tool for implementing true equal opportunities. Regular analysis of the salary system shows very clearly what’s working and where you need to make adjustments. This is why companies who bundle together the various measures to focus solely on a Fair Pay system will reach their goal more quickly.
Fair Pay closes all gaps
Starting with the gender pay gap makes sense in the vast majority of companies and organizations. Often there is a lack of data on discriminatory characteristics such as ethnic origin or sexual orientation, whereas data on male v female income is available and can usually be analyzed to identify gaps. We encourage organizations to calculate other pay gaps as well - but we also know that those who consistently offer Fair Pay automatically create equal opportunities for all.
The first step in eliminating any existing income gaps between men and women is to adjust their salaries. Avoiding further gaps in the future means creating pay structures that are neutral, objective, and non-discriminatory. Ultimately, everyone is paid fairly - no matter where employees come from, who they love or what they believe in. This is why the gender pay gap also closes all other pay gaps. Fair Pay is the most effective way to achieve equal opportunity.
FPI - What we do
Why does the gender pay gap prove so intractable? What is standing in the way of fair pay for all? What do companies need to do in order to put sustainable pay strategies into practice?
Knowing about the pay gap and being willing to rid the world of the unjust state of affairs are evidently not enough to actually ensure fair pay. It is right here ...
Best Practice wanted
We are firmly convinced that pay equity could be possible tomorrow – if everyone wanted it. That is demonstrated by those companies where things are already fair(er).