A ruling made by the Employment and Labour Relations Court of Kenya requiring for equal pay for equal work in Kenya has sparked conversations around wage equity. This ruling is a win for all employees across the country both in formal and informal sectors. However, this sends a stern warning to employers that pay discrimination will not be tolerated in the eyes of the law. How will companies change to conform to the new ruling in a labour market that is struggling with wage gaps across gender, religion and job titles?
Kenya’s wage gap is influenced by factors such as gender, education levels, biased hiring and compensation practices. Women, for example, are often paid less than men for doing the same work which is also evident in formal sectors such as healthcare. Also, unclear pay structures and weak enforcement of labour laws have allowed inconsistencies to go unchecked which has been detrimental to the employees.
Companies should exercise pay equity because they have a moral, social and economic obligation. Organizations that pay their employees well tend to enjoy a higher employee morale where trust and motivation is fostered among workers. Second, there will be minimal employee turnover since the employees feel valued and they are fairly compensated for their work. Companies will enforce a stronger reputation which will be beneficial to potential investors and consumers. With a motivated workforce, companies also perform better as compared to their peers in the industry.
To achieve pay equity, companies can employ strategies such as regular pay audits where they assess their compensation framework to identify gaps. The audits should review parameters such as gender, role and experience to uncover gaps that are not justified by performance. Second, companies should have clear pay scales for each role to reduce the risk of inconsistent compensation decisions. Clarity also helps the employees to understand their potential career trajectory in the organization. The leadership of the company should be trained on the merits of pay equity. Fourth, companies should exercise bias-free hiring by removing subjective criteria in hiring, promotions and appraisals. Structured interviews, diverse hiring panels and objective performance metrics can help reduce biases in the hiring process. Companies should ensure that they are compliant with the law by staying updated on recent court rulings since non-compliance with equal pay laws has the potential of ruining a company’s reputation and legal liability.
Pay equity is a commitment to social justice and sustainable growth. With a dynamic legal landscape and increased public scrutiny, companies should be proactive with their compensation practices by exercising fairness and transparency. Bridging the wage gap is an ongoing journey that begins with intentional and proactive leadership.
