Here’s a story that might sound familiar to you:
You want to hire someone with less experience, but they are asking for a salary commensurate with what you pay your senior team members.
- Angela Pasquale recently worked with a local law firm to fill an Associate Attorney position and ran into this challenge.
- Candidate’s Situation: A two-year associate asking for a salary on par with the firm’s five-year associates.
- Firm’s Position: Already offering competitive market rates and committed to pay equity.
- Resolution: Angela facilitated an open and honest discussion about the firm’s compensation structure and commitment to fairness to both the candidate and their employees. The candidate appreciated the transparency, and they were able to find common ground.
- Win-Win: The firm successfully hired the candidate while maintaining its pay equity standards—making it a win for both sides.
- This story highlights a key issue in today’s hiring discussions: pay equity.
The Growing Importance of Pay Equity
A recent study found that pay equity has become one of the top priorities for today’s job seekers, alongside familiar issues like compensation, work/life balance, and job security. In the simplest terms possible, pay equity is about the principle of equal pay for equal work. Benefits include:
- Addressing wage discrimination
- Complying with local and federal laws and regulations
- Promoting inclusion
- Increasing productivity, engagement, and retention
It’s no surprise that today’s employees care about pay equity more than ever. They want to work somewhere they can feel valued – and that includes being paid what they feel they’re truly worth. When companies are open about pay equity, candidates and current employees alike are more likely to feel satisfied, loyal, and secure in their futures at that company. That translates to better morale and productivity. As with the example we shared: everyone wins!
Beyond Equity
Pay equity is just one part of the larger conversation around pay transparency and structures. To compete for top talent, today’s companies are looking into better ways to gather, analyze, and implement data around salary and benefits. PayScale’s 2024 report highlights the following stats:
- 83% of organizations now have a formal pay structure or are actively working on one.
- 62% say that pay equity analysis is a planned or current initiative.
- 60% are publishing pay ranges in job ads (compared to 45% in 2023).
- 56% use two to four data sources to build salary ranges, with organizations of over 5,000 FTEs likely to use more than five sources.
- 58% say they are investing in dynamic market data or would like to.
Pay equity may also intersect with other recruiting and retention trends. For instance, a skills-based hiring strategy, combined with a commitment to pay equity, can help connect companies with talent outside the “usual” pool, or talent with diverse or non-traditional career paths.
NW Recruiting Partners is here to facilitate these strategic conversations! We understand what candidates are looking for, and we know how to bridge any gaps in communication or understanding. The end result: we can match best-fit talent with each role, ensuring both individual and company success in the long run!
