What is the Role of Employee Feedback in Promoting Pay Equity?

According to a survey of over 3500 employees conducted by Garner Inc., less than one-third of employees feel that they are paid fairly and just 34% believe their pay is equitable. “No way, that can’t apply to my employees!” you say? You may be surprised. If you are not asking for feedback from your employees, how could you know what is going on in their minds?

Feedback is the key to ongoing development. Employees can help you identify gaps in your pay practices that you missed. It allows you to form better relationships. The choice to provide feedback offers your employees a voice and empowers them. This improves employee engagement. Importantly, any company aiming to achieve pay equity must make room for employee feedback.

The Importance of Feedback for Pay Equity

Pay equity is an ongoing, often difficult, process. Do not underestimate the value of feedback to help you promote pay equity in your organization. In the same Garner survey, only 38% of employees surveyed reported that they understood how their pay was determined. Feedback allows your employees to share their uncertainties. They can make you aware of anything that is not clear or gaps you have missed.

As HBR explained, “Pay conversations remain taboo in the workplace. Many leaders still reinforce cultures that encourage secrecy related to compensation.” But as we know, pay transparency and communication are key to pay equity. Not talking about compensation or asking for feedback limits your room for growth.

Be careful – if you do not bother listening, you could find yourself losing your top talent. Turnover is costly and impacts employee morale. New hires take time to integrate and re-skill. This also complicates team performance and damages work progress.

Communication is a Two-Way Street

An organization that only allows communication coming from one direction is limiting its ability to grow. Communication is a two-way street. Without this opportunity, employees may find it hard to connect with management. Managers should be having conversations concerning pay. They are the ones that see how compensation affects motivation and performance. Two-way communication is essential for pay equity.

Start by explaining your pay equity philosophy. Ensure everyone knows how you manage it. Talk employees through the process and be transparent about pay grades, market trends, and how bonuses are calculated. Update employees when a pay gap appears and explain how the company will mitigate it. Each time you meet to discuss these matters, ask for feedback.

When you open the floor up to employees, be prepared to record, summarize, and evaluate the feedback. Offer the same amount of allotted time to hearing from them as you spend, for example, giving them performance feedback. Acknowledge their feedback in a proactive manner, without dismissing any points.

Methods of Collecting Feedback

There are a few ways to go about collecting feedback. You can ask for general comments in meetings. Some people will not be comfortable unless they speak one-on-one with a team manager. Others will naturally be scared to make comments if their name is attached. Be sure to ask open-ended questions about pay equity.

Anonymous feedback surveys are your best bet. People feel a lot more comfortable sharing their honest opinions when they are certain they cannot come back to bite them. You should both ask questions to prompt feedback and give employees the opportunity to share general thoughts. It is worth noting that an effective pay equity aspproach goes a long way to establishing the required trust.

It could also be worth identifying demographics in your organization that commonly experience discrimination. This includes women, people with disabilities, or of different ethnic backgrounds. One-on-one meetings allow them to express their concerns about pay equity in a safe environment. Unless you have experienced the same battles in the workplace, do not just assume everything is fine.

Following Through on Feedback

Only ask for feedback if you are going to follow through. If you fail to do so, it shows your employees that you are not serious about their opinions. Share an overview of the findings so employees know they have been heard. You do not want to just do things for show, otherwise, everyone will begin to take whatever you say with a pinch of salt.

Be mindful that your employees come to work every day. They see things with deep insights into the environment and experience daily challenges. When it comes to achieving pay equity, they should be your go-to source. Their feedback is valuable. It can even go on to serve your organization by improving your company reputation and therefore attracting more diverse candidates. You can build an inclusive, innovative team that knows you are willing to listen to them when concerns arise. Achieving pay equity gets you started on the right path.