Why is equal pay important?

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Equal pay is a growing business issue that need to be addressed for a variety of reasons.

  1. Fairness: Rewarding your employees for what they produce, not who they are, is the right thing to do.
  2. Talent effectiveness: A commitment to equal pay helps companies attract a high-performing workforce, increase employee engagement and reduce attrition.
    • Recruitment:

      66% of the US workforce consists of women, minorities or both.

    • Retention:

      Underpaid employees are 22% more likely to quit.

  3. Risk management: New regulations at federal and state levels have increased the risks posed to companies that have unaddressed pay gaps. These risks include:
    • Loss of federal contracts:
      • Federal contractors risk the loss of all government contracts if they are not in compliance.
    • Noncompliance with new employment regulations:
      • All companies will be required to comply with expanded EEOC reporting beginning in March 2018.
    • Shareholder activism:
      • Public companies face increasing shareholder scrutiny about pay gaps.

      From 2015 to 2016, the number of shareholder inquiries related to equal pay has tripled.

    • Employee litigation:
      • New state laws in California, Massachusetts, Maryland and New York make it easier for workers to sue employers over pay gaps.