For several decades, there’s been much said, written, and legislated concerning the gender pay gap, which compares the median full-time earnings of men and women. However, until recently, the issue of the racial wealth gap – which measures racial disparities in economic security and wealth accumulation – has been largely unaddressed. Over the last few decades, the racial pay gap has worsened:
Narrowing the gap is no easy task, given that between one and two-thirds of today’s racial pay gap can’t be attributed to known causes but rather “unobservable” factors such as discrimination. While a handful of states have added the protected class of race in recent amendments to strengthen their state law versions of the federal Equal Pay Act, much work still needs to be done.
Advancing gender and racial equity is fundamental to every individual’s economic security. While more groups and organizations are advocating for policy change, the wheels of legislation can be incredibly slow at implementing changes. In the meantime, organizations can step up for minority groups to ensure that a racial and gender pay gap doesn’t exist within them.
Here are some steps companies can take to close the wage gap and ensure they follow equal pay practices:
While closing the wage gap and addressing other forms of pay inequity are imperatives, they require time and effort before meaningful results are observed. However, there is an easy-to-implement lever at employers’ disposal that can go a long way to achieving pay inequity by ensuring that everyone is afforded the option of pay accessibility and immediacy: on-demand pay.
On-demand pay, also known as earned wage access (EWA), is a diverse and inclusive payroll model. It allows workers to collect their wages as they earn them. When your employees have access to some or all of their earned wages, they can pay bills on time and better manage their monthly expenses without turning to credit cards or expensive payday loans.
On-demand pay won’t cost you anything and can be swiftly and seamlessly integrated into your digital payroll process. The best on-demand pay software will manage the instant flow of funds, so you needn’t worry about payroll miscalculations, keeping track of cash flows, or handling deductions. This makes an on-demand pay strategy a fair, transparent, and practical option for employers and employees.
When implementing an on-demand pay strategy, consider the following factors:
Before you roll out an on-demand pay solution, formalize how much funds can be accessed and how often your employees can withdraw their wages. Ideally, set your parameters after running an internal survey to gauge their needs.
Look for an EWA provider that meets your ease of deployment needs and offers the features your employees are looking for. For example, consider choosing a provider with low access fees or that offers complimentary financial wellness tools and resources as part of their solution.
Closing a racial pay gap that’s been frozen for decades will come through a combination of legislation and proactive corporate action. Follow the approaches outlined in this article to put your organization on track to becoming a pay equity leader.
All content provided on Payactiv.com/blog/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.
* The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
** Central Bank of Kansas City is the issuer of the Payactiv Visa Prepaid Card only and does not administer, endorse, nor is liable for the Payctiv App.
1 Standard rates for data and messaging may apply from your wireless provider.
Google Play and the Google Play logo are trademarks of Google LLC.
Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries.