Strategies for Establishing Internal Pay Equity

Sharon Boyd has nearly 25 years of experience between both the healthcare and marketing industries. In addition to being an RDH and content writing expert, she also holds a degree in business. Her responsibilities primarily include tackling the communication barriers between small business owners or healthcare providers and their prospective clientele.

Strategies for Establishing Internal Pay Equity

Internal pay equity means assessing the work of all of your employees fairly and paying them for what their work is worth. No one should be paid less on the basis of gender or race.

Being known as a business that pays their employees fairly is critical to your reputation in the industry. Unjust payment practices will become known to your team sooner or later and tarnish your reputation among your customer base. On the other hand, promoting internal payment equity can attract top talent to your company and boost respect and loyalty from your current team.

How can you make sure you have internal pay equity? Consider several crucial strategies.

Know what’s required in each job position in your company.

You don’t want to find out that you’re paying people different wages for doing the same job just because they have different job titles. Determine a fair wage for the job skills you need and make sure everyone who does those tasks are paid the same rate.

If you’re going to pay two employees differently, then you need to have solid proof showing how one person has more skills or experience than the other that merits a higher wage. You can make this determination much more easily if you know exactly what’s required in each job position on your team. Stick to the same unbiased criteria during your hiring process, too.

Audit your company’s current pay practices.

Take seriously any complaints you hear from your employees about perceived payment injustice. Be open to accepting feedback from your team. Create a simple spreadsheet to compare pay rates for your employees with each row listing their:

  1. Name
  2. Gender
  3. Diversity factor (“Yes” or “No”)
  4. Years of experience
  5. Role in your company
  6. Job title
  7. Education level
  8. Any special credentials or certifications

This kind of assessment can help you see if there are any areas of inequality or discrimination in your pay practice.

Implement needed changes.

If you have determined that there are payment discrepancies, you need to take action right away, perhaps by increasing the pay of those who have been discriminated against. Have documentation ready to support your payment rationale in the event someone questions your decisions.

Have more reviews and offer performance-based salary increases.

This will make your payment process more just if simply upping salaries isn’t an option. Make it clear to everyone that you’re rewarding a job well done by paying based upon documented results.

Promote career advancement.

Foster a spirit of innovation and encourage all to reach out for more responsibility in your company. Minorities and female employees should not feel afraid to approach leadership and ask about advancement opportunities or raises and they shouldn’t feel ignored when they do voice their opinion. Don’t overload these individuals with meaningless clerical tasks just to keep them busy and distracted but provide them with the chance to grow and learn.

Internal pay equity isn’t just good business -- it’s the law. Take steps today to make sure you’re paying your employees fairly!