Fair pay (equal pay) is often under pressure in organizations. Sometimes this is because compensation has gradually become skewed over the years, sometimes because compensation is not always transparent. Whatever the case, Highberg can help organizations make compensation fairer, based on thorough data analysis.
It seems fairly simple to compensate employees fairly for the work they do. But as an organization grows and becomes more complex, the chance of unfair compensation also increases. How age- and gender-independent is your compensation policy, for example? And does your organization primarily reward based on the length of someone’s tenure? In the latter case, an undesirable income gap can arise between employees who have been with the company for a long time and employees who have only been employed for a short time. Those who haven’t been with the organization very long but DO perform well and also develop quickly may experience this as unfair.
It is therefore far from simple to compensate in a way that is fair to everyone, taking into account all employees and all the factors at play. Highberg can support clients in identifying and addressing unfair differences. We also have expertise in compensation. It starts with data analysis and meticulous calculations. Measurement is knowledge. We then help interpret the results. We look for substantive explanations for unexpected compensation differences. With that knowledge and insight, our clients can get to work making their compensation fairer.
The introduction of a new European directive will only accelerate the topic of ‘fair pay’ in the coming years. When this legislation takes effect, employees will have the right to know how their own compensation compares to that of other employees in the same position, for example. Our advice is to get your house in order now.
