Comparable Worth/Pay Equity is the concept of ensuring all employees regardless of their gender, ethnic background, military, disability, etc. receive equal pay when using comparable skills and responsibilities to complete the work. Comparable worth provisions promote equal pay for comparable work.
With all of the new laws and executive orders over the past eight years, the Wage Gap between women’s to men’s earnings has continued to close and will move closer and closer as more companies get serious about comparable worth policies. These policies include the evaluation of each position in the organization against a common set of objective and defensible job valuing factors. This kind of review takes out gender and other forms of potential biases to arrive at an overall point total score for the positions and not the individual in the position.
Comparable worth vs. establishing market pay levels through outside market data only is definitely the way to go as it will allow you to use job attributes including skills, knowledge, accountability and working conditions to determine the number of job rating points to be assigned to each of the job attributes and arrive at a total number of points for each position. Given proper oversight and accountability, you can avoid subjectivity by using a point factor system and be on the road toward true comparable worth/pay equity.
There are automated software tools that create job descriptions as well as score the jobs against the compensatory factors and these, along with increased laws and regulations around comparable worth, are increasing the momentum for this objective approach to paying all employees for what they are worth, both internally and externally.