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Why Pay Equity Should Be a Priority for Every Company

In October 2024, the world lost a trailblazer: Lilly Ledbetter, a woman who dedicated more than a decade of her life to fighting for fair pay. She may not have gotten the justice she deserved in her own case against Goodyear, but her efforts have paved the way for millions of others to be paid fairly.

While Ledbetter’s case ultimately led to the passage of the Lilly Ledbetter Fair Pay Act of 2009, the journey she took wasn’t easy. It required persistence, resilience, and a firm belief that pay equity is not just a legal issue — it’s a moral one. The question for CEOs and leaders is: are you doing enough to ensure equal pay for equal work?

Pay Equity is Imperative for Business

When Ledbetter found out that she was being paid 40% less than her male counterparts for the same work, it was more than just a personal betrayal—it was a systemic issue, one that still lingers in many organizations today. While we’ve made progress, with women now earning about 84 cents for every dollar a man makes (up from 80 cents when the Ledbetter Act passed), we are still far from closing the gap.

Pay equity audits are no longer a "nice-to-have" but a must-do in today’s landscape, especially with the rise of pay transparency laws. Companies in New York and California have begun mandating that salary ranges be disclosed to job candidates, and the EU Pay Transparency Directive will be effective June 2026. Pay transparency empowers workers and shines a light on any potential pay discrepancies, leaving employers more exposed than ever.

Role of CEOs and Leaders

Leaders in various functional roles at organizations have a unique responsibility — not just to avoid legal challenges or comply with regulations, but to lead by example. In 2015, Salesforce did just that - they conducted its groundbreaking pay equity audit and spent $3 million adjusting salaries, sending a message to the entire business community: We value our employees, and we are committed to paying them fairly.

Today, only about 60% of companies are following suit, conducting their own pay equity audits. But that leaves 40% — many of which could be putting themselves at risk, not just legally, but reputationally. The last thing any leader wants is to be in the headlines for a pay discrimination lawsuit that could have been avoided with a proactive approach.

Pay Transparency is No Longer Optional

The days of employees being kept in the dark about pay are rapidly fading. With more and more states across the United States now requiring companies to disclose pay ranges, employees are more empowered to ask questions: Why am I at the lower end of the pay range? How does my pay compare to others in similar roles?

These questions are coming, and being proactive puts you in control. It allows you to shape your company's pay practices in a way that aligns with your values, builds trust, and enhances your brand.

Pay equity isn’t just a moral imperative—it’s also a business one.

Studies have shown that companies that prioritize fair pay and transparency attract better talent, retain employees longer, and boost productivity. In short, it's not just the right thing to do, it's good for business.

Leverage Technology to Simplify Pay Equity

Pay equity isn’t a one-and-done effort; it’s an ongoing commitment. The good news is that technology has made this process easier than ever before.

At Kamsa, we provide companies with the tools to conduct pay equity analysis, identify disparities, and make data-driven adjustments — all with the click of a button. Our compensation experts are here to guide you along your pay transparency journey.

If you're ready to take the next step toward pay equity, reach out - we're here to make equal pay for equal work a reality, together.

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