beqom Announces Solution for Equal Pay Analysis and Compliance
beqom, a provider of cloud-based compensation management software, has announced a major step forward in empowering organizations to attract, retain, engage, and motivate their employees, through new equal pay analysis and compliance functionality.
The beqom solution gathers and analyzes data such as company demographics, job roles, compensation, and relevant external benchmarks. By applying business rules and AI/machine learning, beqom is able to produce the analysis an organization needs to identify current inequities, suggest remedial actions, and learn which attributes will lead to pay gaps over time.
"Equal pay for equal work-without bias related to gender, race, or other factors-has become increasingly important to companies as they seek to compete for talent and enhance their employer brands," according to Tanya Jansen, beqom CMO. "Employers are seeking to assess the objectivity of their own pay practices both to achieve fairness and to attract an increasingly diverse workforce."
The business case for equal pay has been well established by countless research reports, and Human Resources departments around the world are embracing Diversity, Equity, and Inclusion (DEI) initiatives. Fair pay helps firms to attract, retain, and engage talent in their industries, and is part of a positive employer brand. Eliminating pay gaps encourages diversity, and diversity, in turn, drives innovation and is associated with greater financial performance. McKinsey & Company's global study of more than 1,000 companies in 15 countries found that organizations with greater gender diversity were more likely to outperform on profitability-25% more likely for gender-diverse executive teams and 28% more likely for gender-diverse boards. Organizations in the top quartile for ethnic/cultural diversity among executives were 36% more likely to achieve above-average profitability.
beqom provides organizations with the tools to support fair pay and DEI efforts, which are increasing each year, especially amongst large enterprises. According to PayScale1, 74.2% of organizations with over 5,000 employees say they will conduct a gender pay gap analysis, a racial pay gap analysis, or both in 2021.
Meanwhile, employees are demanding greater transparency regarding pay practices. According to a beqom Gender Pay Gap Survey, 63% of workers in the U.S. and U.K. would be more willing to work at a company that discloses its gender pay gap figures yearly, a feeling shared more strongly by women (70%) than men (53%). The PayScale research found that 54.6 percent of organizations want to be transparent and share pay ranges with employees, but only 33.6 percent currently do so.
beqom's equal pay analysis and compliance solution enables companies to bring pay inequities to light and to provide pay transparency not only to employees but to regulators who may be assessing a firm's compliance with fair pay legislation. Most countries have laws regarding wage discrimination, though details and reporting requirements vary widely. beqom ensures that a company has the means to provide the required analysis and reporting to all internal and external stakeholders.
-- END --
Reference material suggested by Amita:
"Digitalization of enterprises has been on business roadmaps prior to Covid-19, and CFOs have been weighing in [on] how to balance ROI on digital transformation with investments into near-term tangible business objectives. In the light of business continuity in the digital world this reprioritization is reshaping strategic business direction. Organizations are focused on staying relevant and keeping the pace in the new environment, which enables them to prioritize digitalization efforts, take the much-needed steps toward the digital transformation and justify the investments."
"We need to embrace our workforce, remove the barriers and create [an] environment where all teammates feel equally supported and able to contribute. An inclusive environment is one where everyone feels valued. Supporting DE&I initiatives for organizations is like accessing an untapped intellectual capital reserve at no extra cost. What CFO would [not want to do that]? I strongly believe that promoting DE&I initiatives will maximize [the] collective intellectual capital capacity of any organization."
Employees don't trust AI-based pay decisions, but you can give managers the ability to override.
3 ways to make pay equity central to your compensation strategy, in Human Resources Executive (written by Payscale CPO)
Racial and gender pay gaps likely will worsen because of COVID, but HR leaders can take steps to prevent that.
PayScale's Compensation Best Practices Report shows that intention to conduct pay equity analysis is on the rise-increasing 8% over last year. [SEE PAYSCALE REPORT BELOW]
Many organizations think that they do not have a gender or racial pay gap ... The truth is that if you are not measuring your pay data, you simply do not know.
Fortunately, the technology available today eases the burden of pay equity analysis considerably. Although you still need to have a formal compensation strategy and structure, compensation technology lets you build statistical models around factors that influence pay differentials at your organization such as years of experience, location, skills or performance. You can apply these filters to your employees' pay data to offset legitimate reasons that some employees with the same job are paid more than others and then measure whether there is still a gender or racial pay gap for specific positions, and generally across the organization.
[Pay equity is an ongoing process, as a company may be continually hiring, acquiring, divesting, promoting. Having comp technology to analyze pay gaps allows it to be an ongoing process...you don't have to rely on a one-time report that is soon outdated...you can generate up to date analyses at any time.]
PayScale's State of the Gender Pay Gap Report for 2021
54.6% of orgs want to be transparent and share pay ranges with employees, but only 33.6 percent share pay ranges currently.
The subject of pay equity, which was already growing in prominence in recent years due to the #MeToo movement and press coverage of the gender pay gap, returned in force to emphasize that equal pay cannot be ignored - not even during a pandemic. The racial wage gap, which has always been intrinsically connected to the gender pay gap, is receiving increased attention as organizations look inward to accurately assess unfair practices.
Pay equity is reported to be either very important or somewhat important to the majority of organizations (65.5 percent).
Most organizations (80.4 percent) say they aspire to keep employees engaged by paying them equitably based on market data over maximizing payroll.
46.2 percent [or organizations] say that they will conduct a gender pay gap analysis, a racial pay gap analysis, or both in 2021… an increase of 8 percent over last year. [but for orgs over 5,000, that number is 74.2%]
about AI regulation in general
The development of fair and ethical artificial intelligence has become one of the most contentious issues in Silicon Valley. In December, a co-leader of a team at Google (News - Alert) studying ethical uses of the software said she had been fired for criticizing the company's lack of diversity and the biases built into modern artificial intelligence software.
about geographic pay policies
With remote working requests continuing to emerge and surprise leaders, companies are re-evaluating how to create cohesive, consistent and fair geographic pay policies.
"Multinational companies are already well-versed in the practice of differential pay policies at a global scale," wrote Brett Christie, managing editor of WorldatWork's Workspan Daily. However, for companies with offices exclusively in the U.S., "the prospect of overhauling pay structures to account for geographic differences might seem daunting."
Use anonymized info from Adecco?