Why Pay Parity is Good for Business
Equal pay lays the foundations for good business.
Read Time: 2 Mins
I’m going to settle this score once and for all. Once you’ve read this short blog post, there’ll be no trace of doubt in your mind as to whether pay parity is good for business or not, plus you’ll be able to convincingly win any debate on the topic and silence any sceptic.
For starters, some of the world’s largest and most influential corporations have already started to implement rigid pay parity programs. Think Google, Apple, eBay, News Corp (that’s Sky by the way)... All these companies choose to focus on offering equal pay with rates based on one’s job rather than their gender, race, nationality and so on. Put simply, if they’re doing it, it must be a business initiative worth implementing.
Now let’s look at the EU’s 4 main reasons as to why businesses should introduce pay parity.
1. Businesses will end up losing their best employees to other firms who do pay equal, and will struggle to replace them.
Why stay working at one job when you can earn twice as much doing the exact same thing somewhere else? From an employer perspective, all the ablest applicants are going to find a job where their efforts and talent are properly appreciated.
2. Equal pay creates a positive and more productive working environment, where employees have confidence in their employers.
Employee satisfaction in the workplace has a definitive effect on success in business. Attachment theory in psychology explains that “humans are happiest and able to deploy their talents to best advantage when they are confident that standing behind them there are one or more trusted persons who will come to their aid should difficulties arise.”
So, where employers demonstrate that they can be trusted to treat their employees fairly, employees will be happier and more productive in return.
3. Only with workforce equality can employers get the best out of their human resources.
Think here about competitiveness in the workforce. Equal pay sends out the message that the more work and effort that goes in, the better the rewards that come from it. In other words, bias in the workplace does not favour meritocracy.
4. Pay parity increases shareholder value and promotes a much better public image.
We’re moving into the age now where society is getting closer and closer to achieving equality. Investments are made in businesses that understand this and evolve to keep up with social progress. A bad public image can ruin a business, whereas a good one can make a fortune.
Finally, there’s another reason why closing the pay gap is good for business, and it’s to do with business as a whole rather than individual organisms. An economy with equal pay would be far more profitable than one without it. By undervaluing someone’s ability to work, we are under-utilising their value to the economy, and society at large is wasting its own resources.
Pay parity isn’t just a matter of equality; it makes sheer commercial sense.
On Spike’s journey through life, he has walked 550 miles across Spain, spent 4 years in Australia camping, surfing, hiking and jumping off waterfalls, while funding himself busking with his guitar, volunteered at an english school in the Cambodian countryside, and got married on a deserted beach in Fiji. Spike has documented his travels through his blog, and his instagram. After travelling the world these past years, he has made it his goal in life to help create a more diverse and inclusive planet for all.