Human Resources Management (HRM): Discussion on Pay Equity

Discussion on Pay Equity

A firm that operates with transparency earns trust from their workers. As a result, this boosts their morale especially when they are treated equally with their colleagues. In this regard, internal pay equity is essential to aid workers who are top performers. This also upgrades chances of employers to recruit the best talent to work for the firm. This implies that for an employer to be perceived as considerate, he must appreciate the significance of pay equity in a firm.

Observation is an aspect that facilitates potential lawsuits to associate with the staff. External equity is vital when it enables workers to interact within the company. In an industry, a majority of employees have an objective of increasing performance of the firm. This kind of morale booster is necessary to enable employers to retain good workers. Employee equity is accomplished when workers are compensated in a consisted manner. This is in relation to their unique personality and capabilities.

For instance, these traits range from the scale of knowledge and diversity. Others include skills, productivity level in contrast to various members of the staff. It is also essential for employers to stop conditions that will make workers feel that they are not compensated in the right manner (Grimsley, n.d). This situation occurs when workers have a negative opinion concerning their promotions and salaries. At the time when a firm does not have a formal structure, problems are incurred in the audit section.

In a position whereby pay equity applies, employers need to embrace a system that will upgrade equity in payments for workers. To be in a position to retain the full potential of workers, the employer should initiate working conditions that make employees feel appreciated. This is by ensuring that he pays the staff in relation to their talent and skills to avoid losses.



Grimsley, S. (n.d.). Retrieved April 7, 2015, from


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