Equal Pay

Image by Matthew Henry on Burst


Best Practices

Statistical data shows that certain diversity characteristics (especially gender, marital status, origin, ethnicity, and age) are related to wage levels. Wage inequalities that cannot be explained by objective factors such as qualifications or experience create disadvantages. Inequalities of this nature usually arise unintentionally and are challenging to identify.

Nevertheless, it is worth addressing the issue of equal pay proactively, even in the innovation sector. As an example, internal competition without reference to performance creates unnecessary friction and lost productivity. Any perception of unfairness in the compensation system contributes to a working climate characterized by mistrust and can cause the most innovative employees to leave. Establishing equal pay reduces such indirect productivity costs. In the long term, this ensures that employees with the most significant performance potential will be encouraged and remain with the company for longer. The tools listed here present options for providing equal pay in the company.