Posted:
Wednesday, April 4, 2018
Comments: 0
Best-selling books and political events have been placing a long-overdue spotlight on the gender-based pay gap that currently exists in the United States, and now a startup based in Austin, Texas has released a software tool that companies can use to close their own pay gap, as well as tout their support of equal pay.
According to the latest data, American women’s salaries average around $10,800 less per year than their male counterparts’ – with that number moving up or down based on the industry. There have been some recent attempts to close the pay gap, like businesses signing the White House’s Equal Pay Pledge, and its #hackthepaygap initiative directed at increasing diversity and closing gender pay gaps for freelancers.
The lack of equal pay and a structure to enforce it does open up an opportunity for companies to distinguish themselves by outwardly supporting equal pay. Some companies hire consultants to conduct a pay audit, but these paid consultants have their clients’ interests in mind and therefore, pay audits can be viewed skeptically by employees and job seekers.
Seeing an opportunity, the Austin-based start-up SameWorks has rolled out a software solution that makes it easy for companies to spot pay gaps, and SameWorks also offers a certification track that is founded on federal guidelines for fair pay.
How it works
To start using the software tool, employee pay data is entered into the program. The system tags cases where two individuals in the identical job are paid different wages. Businesses then must either fix or make a case for the pay difference, on all occasions, if they want certification. Explanations for pay discrepancies must be reasons like performance, tenure, relevant experience, or relevant education.
According to SameWorks, employers that want certification should also abide by best practices relating to equality in hiring and promotions. When it comes to paying new hires, it’s key that an employer to take into consideration the candidate’s experience, abilities and level of the position, as opposed to open negotiations.
The fee for the certification operates on a sliding scale based on the size of the company’s workforce. Small employers with fewer than 200 staff members are charged $2,500 each year, while large companies with more than 1,000 staff members are charged $10,000 each year to maintain certification. SameWorks has said they will have 100 certified businesses by the end of the year.
Equal pay as a recruiting tool
SameWorks has said it is also offering promotional support for companies that go through its certification program, with the idea that ‘getting the word out’ will help these companies attract more talented female job seekers and more job seekers from diverse backgrounds. Appealing to these groups of professionals could make all the difference in today’s tight labor market.
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