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“Organizations must not only adjust the compensation of those who are victims of pay discrimination but also dig into the root causes of the issues to completely solve the problem,” she wrote in a recent article on the topic of career equity .

Conceptually, we can break the raw pay gap down into two components: The “explained” pay gap, which indicates the extent to which pay differs across demographic groups due to relevant differences in compensable factors, such as occupation, role, education and experience.

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The Compensation Component When organizations decide to adopt a no-degree approach for employment, compensation packages will of course need to be re-examined and recalibrated, Harris said.

While culture is certainly an organizational imperative, most employers intrigued by this model will need to take a brass-tacks approach by examining their compensation strategy as well as staying ahead of potential compliance hurdles.

In addition, Mason said over 80% of organizations in Mercer’s “ 2022 US Compensation Planning Survey (August edition) ” reported that they were maintaining their one-time annual compensation cycle.