How People Ops Teams Is a Crucial Force Against Compensation Inequity

Written by Salary.com Staff
March 27, 2024
How People Ops Teams Is a Crucial Force Against Compensation Inequity

In some companies, outdated practices in Human Resources are causing problems. But now, People Operations teams are becoming more important in fixing these issues. They are working to make sure everyone gets fair pay and treatment at work.

By taking action to fix pay gaps and make the workplace fairer for everyone, these teams are making a big difference. Their efforts against bias and unfairness make the workplace better for everyone, which is what today's workforce needs.

Are you Paying Fairly and Equally?

Confronting the Existence of Hiring Bias

Human bias is an inherent aspect of decision-making, seeping into various facets of life, including the workplace. Hiring bias poses a significant challenge. It hinders fair employment opportunities and prolongs inequality.

Beyond its moral implications, bias has tangible consequences which impact individual and collective performance, stifling innovation, and yielding suboptimal results. To combat this pervasive issue, the first crucial step is acknowledging the reality of bias and, more importantly, taking proactive measures to address it.

When organizations shift from relying on instincts to incorporating data-driven hiring criteria, they make a firm stand for equitable compensation. Data-driven approaches reduce the influence of unconscious bias and enable fair evaluations based on merit and skills. People Operations teams, equipped with the tools to implement such strategies, become important in reshaping the hiring landscape and fostering a more inclusive work environment.

Addressing the Impact of Unfairness

Compensation inequity is not simply an isolated concern. It sets in motion an adverse cycle of negativity within an organization. When employees perceive unfair treatment in terms of compensation, it creates discontent, reduces morale, and decreases overall job satisfaction. This negative momentum can spread across teams, affecting collaboration, hindering productivity, and ultimately jeopardizing the company's success.

Addressing compensation inequity requires a proactive and vigilant approach from People Operations teams. By continuously monitoring and assessing compensation structures, these teams can identify and sort out disparities. It ensures that every employee feels valued and rewarded relative to their contributions. This breaks the cycle of negativity and fosters a positive workplace culture built on trust, fairness, and mutual respect.

The Evolving Role of People Operations

While promoting diversity, equity, and inclusion is everyone's responsibility within an organization, people operations teams are uniquely positioned to champion these values. Traditionally seen as the HR department, their role has evolved to encompass a broader, more strategic focus. Today, people ops play a crucial role in shaping company culture, driving employee engagement, and ensuring fairness in all aspects of the employee experience.

People Operations teams act as catalysts for change by implementing policies and practices that prioritize diversity and inclusion. From crafting inclusive job descriptions to conducting bias-free interviews, these teams play a pivotal role in tearing down systemic barriers that contribute to compensation inequity. By fostering an environment where every employee feels seen, heard, and rewarded, people ops become champions of positive change.

Implementing Transparent Compensation Structures

One powerful tool in the hands of People Operations teams is the establishment of transparent compensation structures. Openly communicating how compensation decisions are made not only fosters trust but serves as a deterrent against inequitable practices as well. Transparency in compensation ensures that employees understand the rationale behind their pay, reducing the likelihood of perceived unfairness.

Transparent compensation structures empower employees to advocate for themselves, creating a culture where discussions around pay are normalized. People Ops teams can facilitate this transparency by providing clear guidelines, conducting regular compensation audits, and openly communicating with employees about the organization's commitment to equity.

Investing in Continuous Education and Training

To effectively combat compensation inequity, People Operations teams must invest in continuous education and training programs. These initiatives can target both employees and decision-makers, raising awareness about unconscious bias, promoting inclusivity, and imparting the skills necessary for fair compensation practices.

By fostering a culture of learning and self-awareness, people ops teams contribute to the long-term transformation of organizational values. Training programs can include modules on diversity, equity, and inclusion, and practical sessions on recognizing and mitigating bias in decision-making processes. Through education, people ops teams empower employees and leaders alike to actively contribute to a more equitable workplace.

The Strategic Imperative of People Operations in Combating Compensation Inequity

To create a fair and inclusive workplace, People Operations teams play a crucial role in fighting against unfair pay. They recognize biases in hiring, understand how unfairness hurts the workplace, and adapt to new roles. By making pay structures clear and investing in ongoing learning, people ops teams lead the way in making positive changes. Their efforts aim to ensure that every employee is treated fairly and paid what they deserve. For companies, supporting People Operations teams is not just an option—it is a must in the fight against unfair pay.

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