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Hot Button Topic: Pay Equity
Pay equity is a hot topic in the news due to stories out of Hollywood such as the pay discrepancy between Mark Wahlberg and Michelle Williams for reshoots of All the Money in the World. Unfortunately, the wage gap is all too real and impacts minorities, especially women of all races, backgrounds, education levels and working in all industries. Recently companies such as Google, Uber and JPMorgan Chase have all faced lawsuits regarding their unfair pay practices.
The gender wage gap has not improved in the past decade and narrowed less than 1% in the past year. On average, a woman earns about 80.5 cents for every $1 a man earns which equates to approximately $10,086 per year.
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In an effort to fight wage discrimination and the gender pay gap, some states and cities recently enacted laws preventing companies from asking applicants about pay history. Supporters of these laws believe they will help since basing a new employee’s salary on their pay history perpetuates pay inequities from past employers; therefore, by not asking about pay history, employers are required to pay more equally for men and women. Unfortunately, according to research , these restrictions alone may actually backfire as women who appear to negotiate salary may be negatively perceived and employers may assume women were paid less even if they actually were not.
Instead of relying on only an applicant’s pay history to establish a starting salary, companies should base it on what the new employee will be expected to do in their new job. Salaries should be based on factors such as the company’s budget, level of responsibilities compared to other positions, how essential the position is to the company’s function, etc.
Pay equity does not mean everyone must be paid exactly the same. There are legitimate factors for pay differentiation between employees in the same or similar positions such as years of experience (overall, in the industry, and with the company), education, certifications, skill-level, and amount of supervision needed.
Companies need to be vigilant about ensuring wage inequities do not arise during the employee’s time with the company. Even if employees are initially paid the same, discriminating factors (whether intentionally or unintentionally) may influence differences in future pay through performance evaluations, bonuses, promotions, job opportunities, etc.
If you have any questions regarding establishing starting pay or your current pay practices, please feel free to contact Affinity HR Group.
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That Affinity HR Group is an endorsed HR provider for more than a dozen national trade associations? And that we can help you recruit for your next rock star employee for a fraction of the price of a typical recruiter?
"Affinity HR Group helps us hire the right people for our fast growing organization. We have a great working relationship with the Affinity HR team. It’s a true partnership."
Leslie O’Bryan, ERPA
Chief Operating Officer |
Benefits Administrators
And Affinity can ensure your HR practices & policies are compliant and costs a fraction of the price of other national providers, such as Paychex & ADP.
"We have Affinity HR Group on a monthly retainer. They back-stop our HR team and have enabled us to delay hiring a senior HR professional. They are always responsive and helpful. We would recommend them to other building service contractors."
Michael Diamond, CBSE
Managing Partner | Affineco
We know your space!
Call us today!
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Ask a Recruiting Specialist!
- Do you struggle to find the best talent for your company’s job openings?
- Are you uncomfortable interviewing?
- Are you just not sure where to start?
Contact us today at contact@affinityHRgroup.com or at 877-660-6400 to schedule your FREE 30 minute consultation with our VP of Recruiting.
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The Monday HR Minute, brought to you by Affinity HR Group, is designed to provide you with practical, applicable human resources and management advice and information in a format that will take you 60 seconds or less to read. We believe that by dedicating just one minute a week to thinking about people management practices, business owners and managers can make enormous strides in improving workplace performance. |
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Affinity HR Group is a full service human resources consulting firm that specializes in advising small and medium-sized enterprises. Our services include recruiting and selection, HR policies and compliance, ad hoc HR support, compensation and performance management, and training and development. We are an endorsed HR partner of a number of leading national trade associations and offer free initial consultations and discounted services to their member companies.
Email us at contact@affinityhrgroup.com or call 877-660-6400.
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