The intersection of pay equity and diversity

Each year, many employers conduct robust pay equity analyses in an effort to identify whether they have a genderor race-based wage gap. They do that for myriad reasons, including to retain talent, mitigate the risk of litigation, and avoid public shaming. These well-intentioned employers make annual salary adjustments, hoping this will be the year they close the gap. Despite their best efforts, however, the stubborn pay gap persists.

Why have companies' efforts fallen short? It may be because the multifaceted nature of the problem hasn't been addressed. The "wage gap" isn't just about wages; in fact, wages are only one piece of this complex puzzle. To avoid a cycle of enacting pay adjustments with no sustained progress toward closing the pay gap, you need to dig deeper into your pay analyses and recognize that the solution may lie in understanding that diversity and inclusion intersect with pay equity.

Assemble your team

The first step in getting to the root cause of a pay gap is building an interdisciplinary team. In addition to consulting your compensation and benefits representatives, you should solicit input from your diversity and inclusion, talent acquisition, performance management, and training and development professionals as well as in-house and outside legal counsel. As with your pay equity study, it's critically important that your research into any pay disparities be protected from disclosure by the attorney-client and attorney work product privileges.

What is driving your pay gap?