{"id":92485,"date":"2023-02-09T00:19:52","date_gmt":"2023-02-08T22:19:52","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=92485"},"modified":"2025-09-05T16:55:16","modified_gmt":"2025-09-05T14:55:16","slug":"pay-parity","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/pay-parity\/","title":{"rendered":"How to achieve pay parity: Employer\u2019s guide"},"content":{"rendered":"

Despite laws prohibiting pay discrimination, gender and racial wage gaps persist<\/strong> in US companies. Employers are now reconsidering pay strategies to achieve “pay parity” or fair and equal pay.<\/p>\n

According to the US Government Accountability Office, women earn $0.82 for every $1 men earn, with even wider gaps for those at the intersection of these identities. This data highlights a long-standing history of inequality.<\/p>\n

Many employers are now prioritizing fair pay practices<\/strong>. In this article, we’ll explore the importance of pay parity and offer simple steps for your team to promote fairness in pay practices<\/strong>.<\/p>\n

TABLE OF CONTENTS<\/strong><\/p>\n

What is pay parity?<\/span><\/a>
\nThe importance of pay parity<\/span><\/a>
\nPay parity vs pay equity<\/span><\/a>
\nHow to achieve pay parity<\/span><\/a>
\nPayroll preparation with HR software \ud83d\ude80<\/a><\/p>\n

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<\/a>What is pay parity?<\/span><\/h2>\n

Pay parity is a term used to signify the lack of a pay gap. Normally, employers will define exactly how they interpret pay parity as a part of their company-wide <\/span>DEI initiatives<\/span><\/a>. In many cases, pay parity is used to describe equal pay for work of equal value for employees, regardless of gender, race, sexuality, or nationality.<\/span><\/p>\n

Pay parity in the workplace<\/h3>\n

Although pay discrimination was made illegal under federal law almost 60 years ago \u2013 under <\/span>Title VII of the Civil Rights Act of 1964<\/span><\/a> and the <\/span>Equal Pay for Equal Work Act of 1963<\/span><\/a> \u2013 gender and racial wage gaps are still a big issue for companies throughout the United States. In an effort to achieve equitable pay or \u201cpay parity\u201d, many employers are rethinking their compensation strategies and practices.<\/span><\/p>\n

According to The <\/span>US Government Accountability Office<\/span><\/a>, women earn on average $0.82 for every $1.00 a man earns. The gap widens even more so for workers with intersectional identities. The same research shows that black women in the United States are paid just $0.63 and Hispanic or Latina women earn $0.53 for every dollar. These numbers reveal a history of perpetuated inequality and systemic discrimination that can\u2019t be resolved quickly and easily.<\/span><\/p>\n

In an effort to promote fair payment practices, many employers are recognizing the importance of practices that promote equitable pay. But how can your team make strides to achieve pay parity?<\/span><\/p>\n

In this article, we\u2019ll explain, pay parity and its importance, and provide you with clear steps on how to make your pay practices more equitable.<\/span>
\n<\/a><\/p>\n

The importance of pay parity<\/span><\/h2>\n

Aside from being an ethically responsible commitment for companies to strive to keep, equal pay practices are necessary to comply with federal and state laws, such as the <\/span>California Pay Transparency Law<\/span><\/a>. Additionally, having pay parity helps businesses to:<\/span><\/p>\n