In this week’s Coffee Talk episode, Henrike greets Margrét with a coffee and a question: What are pay equity statements and what information should they include? This is a question that many companies ask when they are preparing their statement on their pay equity policies.
First things first: What is a pay equity statement?
A pay equity statement is a summary of your pay equity policies, and it should, ideally, reflect your commitment to proactively ensure fair pay to all employees. The goal of these statements is to communicate to your employees, stakeholders, and potential employees your commitment to pay equity.
Margrét explains that, since these types of documents are still not that common, their form and contents vary a lot, from one paragraph statements to dense two-page reports.
But, what should a good pay equity statement look like?
In order to write a good pay equity statement:
- Decide your tone of voice
- List the applicable laws and regulations that apply to your organization and your commitment to compliance
- Summarize your compensation philosophy
- List your organization’s pay equity processes
- Report the outcomes of your pay equity studies (we offer a few tips on this in our article on reporting to your Board of Directors)
To discover all the details about these statements and how they can help you and your organization, watch the full conversation. Don’t forget to grab a hot beverage!
(Also: Keep an eye out for our forthcoming article that takes an in depth look at Pay Equity Statements, CSR reports, and other forms of essential pay equity communications).
Friday Coffee Talk from Planet Fair is a podcast/videocast series co-hosted by PayAnalytics founder Margrét Bjarnadóttir and Henrike Von Platen, founder and CEO of the FPI Fair Pay Innovation Lab in Berlin. It is available through all podcast platforms as well as on YouTube as a videocast.