As companies face increasing pressure from emerging legislation around pay equity, it’s more important than ever to understand how to navigate these changes and make meaningful adjustments that lead to real impact, bringing organizations closer to achieving pay equity.
In the lead-up to our LinkedIn Live event "Advancing Pay Equity through Job Architecture and Analytics" on October 30th, 2024, we spoke with Louise Skinner, Employment Law Partner at Morgan, Lewis & Bockius LLP, to discuss key issues around the emerging pay equity legislation, the role of transparency in fair pay practices, the challenges of navigating different legal frameworks, and practical steps companies can take now to prepare for upcoming regulatory changes.
Louise, you’ve had an impressive career advising companies on employment law and pay equity issues. What inspired you to pursue this path, and what motivates you to continue working in this space?
Collaborating with and supporting employers in their efforts to ensure equality in the workplace is something I am passionate about, and greater transparency over pay and reward is a big part of this equation. When colleagues feel that they are being treated fairly, they tend to be more engaged and productive, achieving better performance overall and improving workplace culture. It is a privilege to support employers across industries as they continue to move the dial and improve workplace equality and experience.
You’ve been advising companies on pay equity for many years. What are some key trends you’ve observed in how businesses approach this issue today?
We have seen many efforts by employers and lawmakers to shine greater light on equality in pay and benefits, including gender pay reporting in many countries, and the introduction of transparency measures including publishing pay scales and prohibiting enquiries around prior pay for job applicants to minimise the risk of perpetuating historic pay disparity. We also see many large employers proactively conducting global pay equity analyses, in some cases extending beyond gender to include other characteristics such as race, ethnicity, and disability. All of these efforts are driving momentum towards fairer pay practices for all.
With global transparency pressures increasing, how are companies balancing the need for compliance with the desire to create genuinely fair and equitable workplaces?
In large part, greater transparency tends to result in fairer and more equitable pay practices. Many employers are striving to ensure compliance with global transparency and reporting requirements, and in doing so are placing much greater focus on factors that will ultimately improve employee experience – such as focus on role architecture and job categorisation, and pay and promotion philosophy and policies. This can only be a good thing in my view.
Your experience spans advising companies across different industries and regions. Are there any unique challenges you’ve encountered that stand out when it comes to pay equity?
One of the biggest challenges is navigating differences in the legal framework and approach across geographies and jurisdictions. For example, the collection of diversity data can be more difficult in some countries compared to others, particularly those with stricter personal data requirements, which can make conducting analyses and advising clients more challenging. We work closely with our clients and local counsel to take meaningful steps towards transparency and equity while ensuring compliance with the applicable legal framework.
Without giving too much away, what are you most looking forward to discussing during the upcoming LinkedIn Live event?
One of my biggest areas of focus currently is the European Pay Transparency Directive which comes into force in 2026 and will require widespread transparency measures and gender pay reporting. There is much that employers can be doing now to prepare and I’m looking forward to discussing practical actions they can take forward.
What do you hope attendees will take away from the upcoming LinkedIn Live event on pay equity and job architecture?
There is so much great work to be done in this area! Employees are expecting greater transparency from employers and are actively making employment decisions based on the results they see. Having in place a clear framework for assessing and achieving pay equity is a key focus for many employers to meet these expectations, and ultimately is good for people and for business. I’m looking forward to hearing from the other expert panelists and discussing the steps employers can take now to drive positive change in this very important area.
To hear more from Louise and other speakers, join us at the upcoming LinkedIn Live event, “Advancing Pay Equity through Job Architecture and Analytics”on October 30th. Reserve your spot now.
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