It is important to remember that people are a company’s biggest asset.
A winning employee workforce can make or break any firm’s success by helping an organization unlock the full value of its business, and companies around the world are increasingly recognizing the significance of treating their employees fairly and demonstrating transparency in their compensation practices.
“Businesses want to know, how do they show their commitment to the board, to their employees, to their shareholders, around maintaining fair and equitable compensation practices,” Milan Parikh, Chief Financial Officer at Syndio, told PYMNTS as part of the new “One Thing” executive series.
“Historically companies have had a limited choice as it relates to establishing a pay equity program, typically outsourcing the process to consultants, lawyers, and third-party experts,” Parikh said.
But what firms get from that is typically a “black box, static answer,” he added. “You get the answer, you fix the symptom, but you don’t get any insights and learnings.”
And while there is always the cost side of things, it is important for enterprises to reframe the discussion internally around driving employee engagement and satisfaction as a critical engine for growth and profitability.
After all, more than two decades into the 21st century, people’s priorities have shifted, and that manifests in what employees want out of their job and, ultimately, what motivates them.
In this complex environment, companies are left wondering how to effectively navigate the path to fair and equitable compensation.
To truly address underlying problems and achieve real-time analysis over employee compensation, companies need to leverage technology and digital solutions that can provide ongoing insights to help fix any equity disparities.
“This is fundamentally the right thing to do, because a company’s greatest asset is its employee base and companies should be focused on taking care of their employees,” explained Parikh. “And now, more and more companies are willing to approach pay equity through the lens of a tech stack.”
“It’s really about elevating the HR leadership, the CHRO to have a stake at the board meeting, to be on par with the CFO, with the CMO, with the CRO. And we like to call it the CHFO, where the importance of investing in HR and HR technology is no different than any other part of the organization,” he added.
The growing focus on transparency and fairness has made it essential for all companies to stay on top of current and future legislation and demonstrate their commitment to fair compensation practices.
“You can’t outsource something as critical as workplace or pay equity. Organizations need to have a longer-term partnership that leverages the technology that now has been built to support this, rather than outsourcing it to individuals and using the old legacy, monolithic model to address compensation management,” Parikh said.
“There’s a huge movement to address pay equity through robust technology and innovation,” he added. “It can help firms be more proactive and more predictive in future-proofing their compensation structures.”
By finding the right partner and leveraging technology, companies can navigate the landscape of pay transparency and equity with confidence, ensuring that they are not only compliant but also fostering a culture of fairness and equality.
The necessity of managing headcount and balancing office expenses and compensation, especially in light of the emergence of hybrid and remote work, requires increased cross-departmental communication and employee buy-in.
“This is about holistically taking care of your greatest asset, your employees,” Parikh explained. “If I’m retaining well, I’m hiring well, employees are happy and content, that typically translates into a more optimized business environment.”
“This is about looking holistically at the different elements of managing your employees, and then making sure that they’re getting paid according to policies and procedures that make sense for your business,” he added.
By gaining understanding and insight into today’s landscape and tomorrow’s horizon, companies can navigate the complexities of pay transparency and equity with confidence. But the importance of solutions that elevate HR leadership and align compensation management with business performance can’t be overstated in creating a workplace where employees are valued and rewarded equitably.