Wages are an important topic for both employees and employers alike. Despite this mutual importance, discussions regarding wages are often considered taboo. Modern business owners can create an open discussion about wages by investing in a pay gap analysis.
This type of analysis can reveal any gaps that might exist within your company's pay structure. Identifying and addressing pay gaps can offer a number of benefits over time.
1. Avoid Discrimination Lawsuits
A lawsuit has the potential to wreak financial havoc on your company. Wage discrimination lawsuits can be lengthy and attract a lot of unwanted attention. An employee who feels that their wage is lower than it should be due to gender, age, or race could pursue legal action against your company.
You might not even be aware that a potential pay gap exists when you are hit with a discrimination lawsuit. Investing in a pay gap analysis will allow you to be proactive in addressing wage differences. You will be able to identify any problematic gaps in your pay structure and correct them to avoid discrimination lawsuits in the future.
2. Build Consumer Confidence
Consumers are more conscious of their purchasing decisions than ever before. Most people want to know that they are purchasing products from a company that values its employees.
A pay gap analysis can be a valuable tool that helps you build consumer confidence in your company.
Regular and consistent pay gap analysis projects let consumers know that you are taking an active role in eliminating discrimination within your organization. This could result in an increase in sales over time.
3. Retain Skilled Employees
Employee turnover can be a real problem for any employer. It takes a lot of time, effort, and money to train a new employee to work within your organization. Being able to attract skilled employees and retain their services throughout the years is critical to the overall success of your company.
Many employees choose to leave their current positions in pursuit of better pay. A pay gap analysis will allow you to identify any differences in pay structure that might be driving quality employees to take jobs with your competitors.
You will be able to create an equitable pay structure that will help your employees feel that they are valued. Employee turnover will be reduced, helping to make your company more efficient.
Use a pay gap analysis to help you improve the stability and performance of your company in the future.