As our company was doing some research on comparable worth, we found that several states have enacted laws on comparable worth/equitable pay. Outside of normal factors around work experience, seniority and performance, employee pay should be equal if an employee is doing the same or similar work as their cohorts. In an article from Human Resources Executive Online titled “Committing to Gender Pay Equity”, just a little over 100 employers have committed to the White House’s Equal Pay Pledge launched in the summer of 2016. These companies are analyzing their wages, hiring practices, promotions and training as they relate to gender and are taking steps to develop and implement best practices resulting in comparable worth around pay for all employees on an annual basis. These companies recognize that they are in a critical role in lowering the current gender gap. It is a shame that our government feels that they have to promote a pledge program around equal pay for equal work. There has been a lot of effort to improve the gender, ethnic background and age pay gaps, but there are still some gender gaps that need to be closed.
In the same HR Executive Online article, it states that when it comes to controlled pay gaps (job title, job level and other controllable factors), the worst industry in the U.S. is oil and gas, where men make 7.4 percent more than women in the same job. The worst State with controlled pay gaps is Louisiana where the pay gap is 7.0 percent. These gaps don’t sound too bad as they’re just single digits, but what happens when you look at States with uncontrolled (pure wage differences) pay gaps? The worst offenders are Louisiana and Wyoming with a 29 percent gap! The smallest uncontrolled gender pay gaps are in California, Delaware, Washington D.C., New Mexico, New York, North Carolina and Rhode Island. Many of these States are the ones that have enacted laws on comparable worth/equitable pay.
Gender gap is improving and our firm has the ability to assist organizations using our inexpensive compensation management software program DBCompensation 10.0. We promote “Internal Equity and External Competitiveness” and the DBCompensation program is an objective, defensible and easy system that gets your nose clean and keeps it clean.
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