There is a funny, but realistic and soul-searching YouTube video titled “Only 78%?!” The video starts out with a female employee learning that she is being paid 78% of her male peer’s pay in the same position. Throughout the rest of the video, she only commits to 78% of her job responsibilities including work hours, meetings, project completions, etc. The video is a great reminder that though the pay gap is shrinking between genders, there is still a gap that needs to be closed. The new pay equity term on the street is “substantially similar” and there is a legal expectation that men and women should be paid comparable pay for work performed of the same value to the organization. Many times, it is difficult to determine what value a position is to the organization and what is the appropriate pay level for that position as well as what to pay each person in the position. Our consulting firm developed a copyrighted 15-factor job rating/valuing system in the mid 80’s with the ability to create a point value for each position within an organization. We have embedded the job valuing system in our DBCompensation software and the software creates a job description and a job point value within minutes. The combination of the internal point value system and external pay data from a variety of pay aggregators allows an organization to establish a defensible and equitable pay range structure based on job content and external pay market data. This eliminates the bias around gender, ethnic background, age, etc. and creates the “substantially similar” jobs in the same pay bands/ranges. With this approach, an organization can ensure that everyone gets to 100% excluding time in position, performance and other valid differentials that cause pay differences among employees in the same position.
Download our free HR Guide to a Compliant, Equitable & Competitive Compensation program on the right or click below to contact us for a free demo!