EQUITY IN ACTION: INTRODUCING OUR FIVE-STEP APPROACH TO ACHIEVING WORKPLACE EQUITY

Equity has become a central conversation point in human resources (HR). But it's no longer enough to simply talk about the importance of a fair and just workplace—the demand for concrete action is stronger than ever. Organizations are now being held accountable for putting those ideals into action. And while the importance of achieving equity is widely acknowledged, many organizations struggle to put discussions and understanding into action.

The challenge lies in the lack of a clear roadmap. Often, organizations don’t have a solid framework and the necessary tools to address equity concerns. This can lead to ad hoc approaches that yield inconsistent results and unfair outcomes.

At Birches Group, we understand organizations' challenges in embracing and attaining equity. That's why we've developed a comprehensive five-step approach to achieve equity in compensation management.

In this blog series on equity, we’ll be introducing our five-step approach to achieving equity. We’ll explore each step, equipping you with the framework and tools you need to move beyond rhetoric and create a more equitable workplace. Discover how to transform equity from a buzzword into a reality within your organization.

The problem of inequity

Inequity within an organization’s compensation structure is a persistent issue with far-reaching consequences. It demotivates staff, creates a sense of unfairness, and ultimately hinders an organization’s ability to attract and retain top talent. Here are some of the most common examples of inequity we see:

The gender pay gap. Women, on average, continue to earn significantly less than men for comparable work.
Locale-based pay inconsistencies. Employees performing the same job in different locations can receive significantly different salaries based solely on geography.
Occupation-based pay biases. Certain occupations may be systematically over or undervalued compared to others.

Unfortunately, traditional pay practices have often fallen short, exacerbating equity issues:

Using salary history when setting starting salaries. This perpetuates existing pay gaps by anchoring starting salaries to potentially biased historical data.
Determining pay increases based solely on time or tenure. By simply rewarding staff for the time spent at an organization, organizations may be overlooking employee performance or the value the staff brings to their role.
Relying solely on “pay for performance.” While performance should be a factor, this can be subjective and susceptible to bias. Another reason “pay for performance” shouldn’t be used is because staff performance isn’t always a consistent measure year after year.
Differentiating pay based on occupation instead of job grade level. Some organizations believe certain functions or occupations (such as IT) should be paid higher because they’re considered “hot jobs.” However, salaries must be examined based on the job’s grade level within a salary scale.
Ad hoc succession planning. When promotions and development opportunities are determined subjectively by managers, it can perpetuate personal biases.

These traditional approaches are often reactive and fail to address the root causes of inequity.

As more states and countries enact pay transparency laws, organizations need a framework and tools not only for ethical reasons, but also for legal compliance and building a truly equitable workplace.

The Birches Group approach

At Birches Group, we understand that achieving workplace equity requires a clear, objective, and systematic approach. We believe that fair compensation isn't just about salary numbers; it's about ensuring that every employee feels valued and recognized for their contributions.

Our framework: building a foundation of fairness

Our framework is built on the fundamental principle of establishing the equivalent worth of each job within your organization. This is achieved through a consistent job evaluation process that considers the skills, knowledge, and responsibilities required for each role.

When organizations have a standardized method to objectively assess jobs across different grades and units, it becomes the cornerstone for aligning other HR functions. This includes job design, salary benchmarking, recruitment, pay movement, and performance evaluations.

Steps toward an equitable compensation program

Here is how our five-step approach works:

Start by establishing equivalent worth. Begin by conducting a comprehensive job evaluation that accurately assesses the complexity and value of different roles within your organization. This evaluation process will create a clear hierarchy of positions, setting the stage for the next step.
Establish a grading structure. Once the distinctions between roles are established, develop a structured grading system to categorize them effectively. This grading structure will become the backbone of your compensation strategy.
Utilize salary surveys. Leverage the job evaluation and grading structure to conduct a thorough analysis of external market conditions through salary surveys. Our extensive database of compensation and benefits surveys spanning over 150 countries provides valuable insights for benchmarking against sectors.
Develop pay ranges. Establish well-defined pay ranges for each grade, ensuring they align with your internal job evaluations and external market data. This ensures that compensation is both externally competitive and internally equitable and sensible.
Implement fair pay management mechanisms. With the job evaluation, grading structure, and pay ranges in place, it's time to implement a transparent and equitable system to manage employee progression within these ranges. This includes clear criteria for promotions, raises, and bonuses, all based on objective and well-defined skill stages and expectations.

We emphasize consistent and precise methods for evaluating jobs, managing salaries, and assessing staff performance. This ensures that everyone has the same opportunities for advancement and is evaluated based on the same objective criteria.

What sets Birches Group apart

What truly sets Birches Group apart is our focus on:

Skills-based compensation. We move beyond traditional approaches that rely on tenure or subjective performance evaluations. Our framework recognizes employees for the skills and knowledge they bring to the table.
Data-driven transparency. We use our compensation and benefits surveys of over 150 countries to help organizations inform their pay strategies based on comprehensive labor market information, ensuring that compensation decisions are fair, objective, and defensible.

What’s next

Achieving equity in the workplace isn’t just a moral imperative; it’s a strategic advantage. The Birches Group approach offers a precise and data-driven framework for building a compensation system that rewards contributions.

Stay tuned for the next installment of this blog series on equity, where we’ll explore key aspects of our five-step approach in detail. With our insights and tools, learn how to transform your compensation practices and other HR programs to achieve lasting equity within your organization.

If you’re ready to see what equity can look like for your organization, schedule a call with our team.

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.