Sector News

How to ensure the job offer you make is truly equitable

August 13, 2021
Diversity & Inclusion

The greatest single source of long-term pay inequity is the job offer. If we are committed to addressing pay inequity in our organizations, we have to start there.

Let’s say you have three candidates of mostly equal qualifications pursuing three identical positions at your organization: Jordan, Prisha, and Bari. You prepare three equal job offers with a starting salary of $100,000 each.

But just before you go to make your offers, someone on your team notes that Jordan is the only candidate who went to an ivy league school—and besides, he is the breadwinner in his family. Afraid that Jordan might not accept, the team agrees to add another $10k to his offer—and his alone.

You extend your offers, and Jordan negotiates. After a few exchanges, you agree to increase his offer by another $10,000. Prisha doesn’t negotiate at all. Bari does not negotiate, and then has a baby shortly after joining your company. She asks to take a one-year leave of absence on top of her paid maternity leave, and you offer to extend the same original offer when she returns.

Fast forward twenty years. Even assuming that promotions and raises were given out equitably, Jordan has now made $400k more than Prisha and $500k more than Bari. Let’s consider the role your organization played. Seemingly small early decisions—one informed by bias and another that was merely reactive to an aggressive candidate—led to a sizable pay equity gap. READ MORE

By Arthur H. Woods and Susanna Tharakan

Source: fastcompany.com

comments closed

Related News

February 25, 2024

From Gen Z to X and Boomers, too: how to effectively lead a multi-generational workforce

Diversity & Inclusion

Have you felt a bit dated lately after glancing around your meetings or Zoom calls? It’s not the video filters or unfamiliar slang; it’s your colleagues. Gen Z employees are poised to surpass Boomers in the workplace this year.

February 17, 2024

Busting myths about women in the workplace

Diversity & Inclusion

On this episode of The McKinsey Podcast, McKinsey senior partners Alexis Krivkovich and Lareina Yee talk with global editorial director Lucia Rahilly about the 2023 Women in the Workplace report—and specifically, the newest research on where progress is happening, where it’s not, and what leaders need to do differently to accelerate the pace of change.

February 10, 2024

The new Executive Presence: has a difficult decade changed the definition?

Diversity & Inclusion

Everyone agrees that leaders can’t reach the top without executive presence — but pinning down a definition is much more daunting. In fact, the fuzzy nature of the phrase is exactly why it’s often used as a fig leaf to keep women and other marginalized people out of plum roles.

How can we help you?

We're easy to reach