A year-end reflection on how to engage employees and shareholders on the issue of fair pay and establish a fair pay agenda in 2018 may offer a double benefit: It could drive growth by fostering a more diverse, inclusive and skilled workforce, and offer the opportunity to do the right thing.
New regulation and social media are pressuring companies to disclose and compare a variety of statistics in support of the fair pay agenda. Remuneration committees must now do more than look horizontally across the top of the organization (informed only by shareholders’ expectations and the views of the executives themselves) and broaden their remit to also look vertically down through the organization.
Research also consistently shows that a more diverse and inclusive workforce helps business by bringing new skills, innovation, sounder decision-making and higher staff satisfaction and retention.
Read our blog post, “Shining a light on the fair pay agenda,” Executive Pay Matters—U.K., December 8, 2017.