Pay Equity

Pay Equity means compensating employees when they perform the same or similar tasks. So, for example, gender pay equity is about paying men and women in the same way. Pay Equity can consider other variables that can affect the difference, such as experience level, performance, seniority.

In recent times there has been a significant acceleration in this type of law, not only in several states in the United States, but also in Europe, where in 2023 the European Community approved a directive on this matter applicable to all twenty-seven countries. In Latin America, Brazil passed a law in 2023, Peru already has one, while other countries in the region already have bills to be discussed and approved. In all these laws, to a greater or lesser degree, there are sanctions applicable to organizations that fail to comply with the matter.

TMC has accumulated significant experience in data analytics, as well as in compensation, both of which are necessary to achieve results in this area.

TMC can, among other things, accompany you in:

  1. Calculate the adjusted and unadjusted pay gap by country, region, as well as by pay levels.
  2. Identify systemic risks and factors that are impacting the gap.
  3. Determine broad and moderate risk areas. That is, those that are above or below. Suggest possible solutions.
  4. Conduct salary audits Assist in the calculation, identification, and management of actions to reduce gaps.
  5. Accompany the valuation systems associated with pay equity.

Pay equity is not only in many cases a legal requirement, but also an important tool that can significantly affect productivity, reputation, and the climate of your organization.