Even 60 Minutes Is In On It

Even 60 Minutes Is In On It

On a recent Sunday evening, the popular show 60 Minutes ran a segment on an important topic that is getting a lot of attention today and part of the Me Too movement. Human Resources professionals around the world have been working to correct this issue for several years. What was different and important to note in the 60 Minutes program, a CEO of a large corporation (over 30,000 employees) was his commitment to have the HR team audit this issue. After the audit was completed, the company spent $3 million the first year to correct the issue. What is the issue? Pay Gender Parity and also, more women in executive company roles. The 60 Minutes piece indicated that women are currently paid on average 20% less than males in the same positions and that the number of women in senior level positions at the large corporation being interviewed for 60 Minutes was only 20%.

As compensation professionals, we have worked with over a thousand companies in the past 32 years. Companies that have a formal compensation and benefits philosophy statement that has been developed and adopted by the Board of Directors and an executive team committed to accomplishing and adhering to that statement do a better job of pay and leadership parity among all classes of employees. A solid compensation and benefits philosophy statement will directly address pay and leadership parity. For pay and leadership inequity to be eliminated, the Board of Directors and top management must commit and follow through on pay and leadership parity decisions.

If you need assistance to determine where your organization stands with this issue, we are here to help evaluate and set the stage to correct any pay and leadership parity issues within your organization.

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

Doing the Same Job? Get the Same Pay!

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.

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!