Despite decades of progress, pay equity remains a central issue in the workforce. In 2024, women earned just 83 cents for every dollar earned by men — a stubborn reminder of the persistent gender pay gap. For women of color, working mothers, and individuals with disabilities, the gap is often even wider. But closing it is more than a moral imperative; it’s a business one.
When companies pay fairly, they attract better talent, retain top performers, and optimize workforce potential. That’s why organizations across industries are turning to pay transparency and data-driven compensation strategies to lead the way.
Why Pay Transparency Matters
Employees today want more than a paycheck — they want to know how and why they’re being paid. Pay transparency helps eliminate guesswork and distrust by making compensation philosophies clear and consistent. It equips managers to explain pay decisions and encourages accountability at all levels of an organization.
Transparent pay practices also help identify hidden biases. Disclosing gender pay gaps and regularly analyzing compensation data allows companies to correct disparities and ensure alignment with their values and goals.
The Lilly Ledbetter Fair Pay Act: A Turning Point
The passage of the Lilly Ledbetter Fair Pay Act of 2009 was a landmark moment in the fight for equal pay. Signed into law by President Obama, the Act overturned a Supreme Court decision that had made it harder for workers to challenge discriminatory pay.
Under the Act, every discriminatory paycheck restarts the clock for filing a claim — ensuring that pay discrimination, no matter when it began, can still be addressed. This shift acknowledged the “reality of wage discrimination” and reinstated the principle that fairness should never expire with time.
From Policy to Practice
Bridging the gap between company policy and everyday pay decisions is where progress happens. That means:
- Running regular pay equity analyses to uncover gaps.
- Preventing future disparities through structured compensation frameworks.
- Training managers to communicate clearly and confidently about pay.
Pay equity isn’t just about base salaries — it includes bonuses, benefits, time off, and career development opportunities. By evaluating total compensation and removing bias from the equation, companies can build inclusive workplaces where talent thrives.
Looking Ahead
According to a 2025 JPMorgan Chase report, gender pay equality worldwide may not be achieved for another 134 years. But that doesn’t mean we can wait. Closing the gap starts with each company, each paycheck, and each decision.
Leaders should ask themselves what type of work the organization values most. By aligning company values with action, organizations can lead the way toward a more equitable future.
Equal pay isn’t just a benchmark — it’s a business strategy. Let’s build workplaces where everyone has a fair shot at success. aHRrow can help clients achieve pay equity by conducting compensation analyses and identifying pay disparities, working with you to ensure fair, consistent, and compliant pay practices across the organization.