Significant Statistics from the Bersin Definitive Guide to Pay Equity

The Definitive Guide to Pay Equity is a report commissioned by Salary.com and produced by The Josh Bersin Company. It provides a comprehensive approach to pay equity today and outlines how organizations can strategize to make pay equity a reality in their own compensation practices. Within the report, there is a section titled “The Five Key Findings.”

In this section, there are several significant statistics that we think you should know. These statistics give you the chance to open your eyes and see pay equity in a more serious light. Let’s begin by displaying statistics about the impact of high rewards compared to the impact of equitable pay.

The Impact of High Rewards Compared to the Impact of Equitable Pay

As you can see from the statistics above, the impact of high rewards compared to the impact of equitable pay differs depending on the outcomes. When making rewards and recognition fair and equitable, organizations experienced a greater impact on their business outcomes and innovation outcomes. On the other hand, there will be a greater impact on innovation outcomes if you provide above-average rewards and benefits. By looking at these statistics, your organization needs to weigh up which outcomes matter most to them.

Strengths and Opportunities in Pay Equity

From the figure above, we can see that there is still an enormous potential for pay equity practices within the organizations that were surveyed. Although 71% of organizations say pay equity is critical to their people and business strategy, only 14% set aside a significant budget to address pay equity issues. This outlines clearly how a lot of work needs to be done to make pay equity a reality in the vast majority of organizations in the survey.

Skills and Capability Assessments in Pay Equity

Conducting skills and capability assessments in pay equity is vital for effective pay equity work. In the table above, we can see the difference in percentages between high-performing companies and low-performing companies when it comes to pay equity. The high-performing companies dominate low-performing ones in the statistics above, which serves as a good reason why they are high-performing in the first place. For low-performing companies, improving their skills and capability assessments is something to strive for.

Impact and Effectiveness of the Elements of Pay Equity

In the tables above, we can see the five elements of the pay equity framework ranked in terms of relative impact on outcomes and the percentage of companies that are effective or very effective. In the relative impact on outcomes, ‘Change and Communication’ ranks highly. However, only 15% of companies effectively communicate and manage the significant changes related to pay equity, making it the lowest scoring of all elements. This displays how this element, as well as other elements, need to improve percentage-wise within organizations to become effective or very effective.

What Are the Benefits of Using Specialized Technology and Analytics for Pay Equity?

The last statistic we will look at is a statistic that displays the benefits that companies receive by using specialized technology and analytics for pay equity. With companies being 3.2 times more likely to engage and retain employees, they can enjoy higher job satisfaction levels and lower turnover. On top of this, being 7 times more likely to attract the right talent can help your organization achieve its goals. With these benefits, it should be a no-brainer for organizations to use specialized technology and analytics for pay equity.

Download The Definitive Guide to Pay Equity Today

If you want further insights and more data on pay equity, sign up to receive The Bersin Definitive Guide to Pay Equity today. This report can provide you and your organization with frameworks and strategies to implement pay equity effectively. So, what are you waiting for? Sign up now!