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Why Advocating for Equal Pay Is Important

14 June 2021 by Becky Freeman

Getting a paycheck at the end of the week or month is gratifying to practically everyone. However, it can also expose glaring inequalities between genders. Working women typically earn less than men, and other factors such as race can cause wage disparities. Sadly, discrepancies can have adverse effects on the affected gender and trickle down to the family unit. Equal pay means a worker's compensation should match the job regardless of gender. In the US, the Equal Pay Act of 2010 forbids pay discrimination between genders.

Here is why advocating for equal pay is important.

Have Long-Term Implications

Pay discrepancies between men and women have far-reaching consequences. It can affect their retirement pension contributions, which means they'll have lower payouts in their retirement years. Therefore, being unable to save in your productive years can increase the poverty level in old age. As a result, women in later years may depend on their families to bridge the income gap, and the effects can spiral into a cycle of overdependence. Therefore, employers should reward every employee reasonably regardless of their gender for long-term sustainability.

Portrays an Organization in A Positive Way

By advocating for equal pay, the organization is perceived as transparent and sends positive messages about its core values. Such a company can attract a pool of experienced and highly skilled employees, which improves productivity. There'll also be lower cases of employee turnover and staff absenteeism. If your organization has equal pay, it can participate in a wide variety of corporate social responsibility (CSR) activities, and therefore it raises the company's profile to various stakeholders.

Reduces Lawsuits

Pay disparities can lead to lawsuits filed by affected employees. These are time-consuming and expensive as the company's management will spend most of the time in tribunals defending their case. The staff will have lower morale, and it can dent the relationship between employees and management. Employees who win the case might receive damage rewards which can be traced to several years back. Your organization will lose significant positive reputation as well as shareholders' confidence. Even worse, you could be under investigation. This might also unearth other things which can damage the company's reputation.

A company needs to review its employment policies and practices to ensure there's no discrimination amongst the employees. It includes recruitment, training, development, and promotion of staff regardless of gender. Compliance with Equal Pay Act ensures your organization upholds the fundamental rights of the employees to fair remuneration.

To learn more about equal pay opportunities, contact a local law firm near you.

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