The greatest single source of long-term pay inequity is the job offer. If we are committed to addressing pay inequity in our organizations, we have to start there.
Let’s say you have three candidates of mostly equal qualifications pursuing three identical positions at your organization: Jordan, Prisha, and Bari. You prepare three equal job offers with a starting salary of $100,000 each.
But just before you go to make your offers, someone on your team notes that Jordan is the only candidate who went to an ivy league school—and besides, he is the breadwinner in his family. Afraid that Jordan might not accept, the team agrees to add another $10k to his offer—and his alone.
You extend your offers, and Jordan negotiates. After a few exchanges, you agree to increase his offer by another $10,000. Prisha doesn’t negotiate at all. Bari does not negotiate, and then has a baby shortly after joining your company. She asks to take a one-year leave of absence on top of her paid maternity leave, and you offer to extend the same original offer when she returns.
Fast forward twenty years. Even assuming that promotions and raises were given out equitably, Jordan has now made $400k more than Prisha and $500k more than Bari. Let’s consider the role your organization played. Seemingly small early decisions—one informed by bias and another that was merely reactive to an aggressive candidate—led to a sizable pay equity gap. READ MORE
By Arthur H. Woods and Susanna Tharakan
Source: fastcompany.com
A lack of focus on DEI also — perhaps self-evidently — has a clear impact on organizational equity, as fewer companies prioritize work that dismantles structural biases. However, Elliott points out that many companies that distance themselves from DEI now may never have been truly invested in their goals.
CEO Jim Farley sent a memo to all employees early Wednesday outlining the changes, including a decision to stop taking part in external culture surveys and an annual survey by the Human Rights Campaign that measures workplace inclusion for LGBTQ+ employees.
Language matters. If DEI is the right acronym for your organization, don’t let the naysayers force you to pivot. If people understand what it means, why it matters and how the organization is using DEI to create a competitive sustainable advantage, it is likely a long-term fit.
