Gender Accounted for in 80% of Pay Equity Audits, but Issues Still Remain

March 12th marked Equal Pay Day, an annual day where gender inequality is recognized in workplaces across America. A new study by The Society for Human Resources Management, SHRM, found that 70% of HR professionals agree that women face discrimination in the labor market even though 75% of organizations regularly audit for pay equity.

While there’s been significant progress made in terms of pay equity, the study shows there is still a long way to go. While gender is accounted for in 80% of pay equity audits, race and age are only reviewed 68% and 62% of the time respectively, highlighting a disparity in how pay equity is evaluated across various demographics. 

Johnny C. Taylor, Jr., President and CEO of SHRM-SCP said the study findings, “suggest a strong awareness of pay equity issues among workplaces, while also uncovering a lack of training and unity among HR departments regarding this topic.” 

While most HR managers are confident about their organization’s commitment to pay equity, the study found that many people managers are often left out of the conversation. People managers are often vital advocates for their team’s pay, yet only 68% are trained on how to make business-related pay decisions. Additionally, only 36% of people managers are trained on the importance of pay equity, according to the study. 

The study also found that HR departments are more likely to take action on cases of pay inequality that involve a disparity between genders than cases which don’t. In a test scenario, HR professionals were much more likely to grant female workers with raises when they were compared with male employees of equal standing. When with other female employees, only 66% of HR professionals reported that they would be at least somewhat likely to take action.