More Than The Bottom Line: How Equal Pay Enriches A Company

When Equal Pay Day takes place, there will be plenty of thoughtful comments to be found. This includes blog posts, articles published on LinkedIn, videos and various posts across other social media. There’s still a chance, however, that some organizations will miss out on this conversation — or simply ignore it.

Rather than let that happen, or risk the discussion being confined to a single day of the year, this might be a great time to gather some of the most relevant content you notice on Equal Pay Day and bring it forward to the executive team. This could be done via a simple email message with a summary and links to the relevant posts. It might just be a matter of choosing the best comment or post and sharing it on its own. Some might opt not to share other people’s content, but to simply raise the issue based on their own experience and perspective.

No matter the approach, one of the biggest barriers to equal pay that’s sometimes raised is around cost management. Although most organizations will say their people are their biggest asset, they don’t always invest in them accordingly. “We have a business to run,” they might say, citing high overhead in everything from their physical infrastructure like offices and warehouse space to the supplies they need to order. Compared with these sorts of expenses, salaries might seem like a more flexible area, and one that could help improve the bottom line.

Don’t let such talk discourage you. There’s a way to make the business case for equal pay that’s just as professional and focused on the kind of outcomes that are important to most companies. These are a few of the often-overlooked benefits that will resonate with a lot of smart executives:

1. Equal pay attracts the best talent

You can offer a casual dress code, set up lounges with bean-bag chairs or close up early on Friday afternoons, but anyone who has recruited for an in-demand skill will tell you that nothing beats a competitive salary.

Think of the rise in digitization that has unleashed unprecedented needs for employers to find data scientists, developers and other kinds of talent. These people are often in a highly favourable position when it comes time to choose their next opportunity. If you can offer everything but equal pay but another employer does, where do you think they’ll go to work?

This thinking doesn’t just apply to those getting hired for the “hot jobs,” however. Equal pay has just as big an impact amongst all roles, because it demonstrates a respect for the level of effort that any kind of work requires. It not only means you’ll likely have the top contenders vying for open roles, but that they’ll stay longer once they get them.

2. Equal pay bolsters employee engagement

The industry or sector you operate in doesn’t matter: almost any kind of important work today involves collaboration, whether it’s within a department or across multiple business functions. When that happens, you’ll inevitably wind up with coworkers who have essentially the same degree of seniority, the same academic and professional background and areas of responsibility.

Talk to any CEO about what they expect from their staff and they’ll probably all answer, “the best.” Why would employees do that, however, if they feel that their employer is only paying the best possible salary to some but not others? When equal pay becomes the standard, it becomes like a badge of honor for everyone involved. There’s no need to foster anything but a healthy kind of competitive environment, and employees usually honour that fairness by going the extra mile.

3. Equal pay improves the customer experience

Put yourself in the shoes of someone who needs to reach out to a company for help buying a product. When they find themselves dealing with an employee who feels overworked and unfairly paid vis-a-vis the rest of the organization, how might that manifest itself? It could mean the employee is slow to respond, or that they offer the bare minimum in terms of assistance.

In contrast, equal pay policies not only create a happier internal culture, but a workforce that tends to treat every customer with the care and consideration that they’ve been shown.

4. Equal pay creates a stronger brand

Companies don’t just have to contend with employees and customers. They have suppliers, third-party firms they work with as partners and in some cases shareholders. These are all entities that make careful choices about the businesses that become part of their ecosystem. Naturally, they want to work with or deal with companies that operate with excellence and efficiency, but reputation can play a huge role.

If you need more evidence or data to back any of this up, think about starting with an equal pay assessment that shows exactly what the situation is across the company. Next, look at measurements around productivity, repeat sales, or customer satisfaction scores to make a correlation with equal pay. And finally, keep the discussion going.

Things don’t always change in organizations overnight, but as more companies learn about the benefits of equal pay beyond the bottom line, they’re far more likely to realize that taking the necessary steps is just good business all around.