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Did you know that from November 14th, disabled workers stop getting paid for the work they are doing until the new year?
We were shocked too. A new analysis from the Trades Union Congress discovered that disabled people effectively work for free for the last 47 days of the year due to the sizable pay gap between disabled and non-disabled workers. And what’s even more alarming is that this pay gap has actuallygrown over the last decade from 13.2% to 14.6%.
Disabled people make up 17.8% of England’s population – equivalent to 10.4 million people – and so a sizable percentage of these people are going to be of working age and, with the right reasonable adjustments, very willing and capable of working part- and full-time jobs.
But the problem that is making workplaces unattractive to diverse talent is the pay disparity they experience – and sadly, this isn’t just limited to disabled workers.
Employers who are actively taking steps to bridge this gap are the ones who are going to be the most attractive workplaces for diverse talent. It is already a well-known fact that diverse talent is good for business, so this should be a strategy that all companies are integrating.
Not only will diversifying your hires lead to wider innovative opportunities, but tapping into diverse talent pools such as disabled workers will play a huge part in plugging talent shortages and bridging emerging skills gaps.
A recent survey from the BBC of nearly 5000 companies found that 73% of these companies came across hiring difficulties during the July to September quarter of this year. Aside from the pandemic, this is one of the highest figures it has ever been!
So, what are the best way of overcoming these difficulties? Employers need to be targeting these pools of underused talent and hammering down on the pay disparity that groups like disabled workers continue to face. This will see employers bring in the best of talent from all corners of the market, and help strengthen and sustain their business well into the future.
If you would like to discuss how we can help tailor your hiring strategies and work towards closing the disability pay gap, please get in touch with us!
Equal Pay Day comes around every year to shed light on the fact that pay disparities are still very much present – women working full-time in the US are still only paid 83% of what men earn for the same job.
But for employers to successfully address pay disparity, they first must understand the differences between pay equality and pay equity, and how to utilize them successfully.
Pay equality is the practice that all employees are paid the same amount for doing the same job, regardless of their gender, race, or other protected characteristics. This essentially means that if two employees have the same job role, same responsibilities, and same qualifications, then they should both receive the same pay.
Pay equity, more broadly, is the practice of ensuring that employees are paid fairly for the actual work they do, taking into account factors such as job responsibilities, required skills and experience, and market demand. This means that two people who have the same job title may not be paid the same wage, if one of them has more responsibilities and/or experience than the other and market demand is different based on the location of their work.
When organizations are looking to solve pay disparities, they need to bear in mind that pay alone should not be the sole focus for assessing fairness. Typically, pay disparity issues will be a symptom of wider systemic problems – there may be practices or cultural issues which inadvertently cause (or worsen) these inconsistencies.
That is why the best way of approaching this issue is by using both pay equity and pay equality mindsets. Ensuring that your pay is equitable is vital when attracting and retaining talent, as it means that people are considered based on their value and talent rather than their gender, race or anything else.
But for equitable pay to even truly be achievable, you must first look at the wider context of pay equality on an organizational level. If your processes are not established in a way which allows for employees to be considered on an equal basis from the outset, then you cannot attempt to pay people equitably.
Therefore, to achieve pay equity and pay equality, a company must establish a pay philosophy, which acts as a clear strategy for how the business approaches compensation.
In addition to this, implementing transparent and objective pay practices, regularly reviewing and adjusting pay structures, and eliminating any biases in hiring processes and the company culture, will allow for an employer to successfully be able to pay employees equally and equitably. And this is undoubtedly a smart business move – McKinsey discovered that the least diverse organizations were found to be 27% more likely to underperform on profitability, whereas those companies that were most diverse outperformed their peers by 36%.
However, a company will fail to attract a diverse talent pool if it cannot demonstrate equality and equity in their wages. So, if you need guidance in creating or solidifying your pay philosophy, get in contact with me at alisa.cardenas@orgshakers.com
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
As we enter the new year, many employers are conducting end of year pay reviews for their employees. This year’s pay trends are likely to differ from previous ones due to a variety of factors which may influence how leaders and workers approach their compensation strategy in the coming twelve months. Considering that a recent study by Willis Towers has revealed that 75% of organizations are struggling to win over new talent, it is critical for companies to actively improve their compensation IQ in order to be a viable talent competitor.
As there is a clear need for employers to improve their compensation IQ in 2023, consider the following trends that are rising in the compensation space as your organization looks into how best to reward talent.
Making the effort to invest in improving your compensation IQ as an employer can be the differentiating factors when it comes to your talent strategy in 2023. Amongst the rising inflation rates, the cost-of-living crisis and changing attitudes towards work, understanding how to leverage compensation as a way of making you stand out will help ensure you are bringing in the right people. To discuss growing your compensation IQ or reviewing your compensation strategy in more detail, get in touch with me at alisa.cardenas@orgshakers.com
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020