"Bonuses, incentives, and variable pay are often treated as secondary components of compensation. They are not. In many roles, they represent a substantial share of total earnings. More importantly, they are where discretion thrives and bias follows."
"If organizations are serious about closing gender pay gaps, they must go beyond salary grids and confront how bonuses are actually distributed. That requires rethinking not just compensation policies, but the everyday managerial decisions that shape outcomes."
"Most companies measure pay gaps at the end of the process: who earned what, and why. But when it comes to bonuses, inequality often originates much earlier."
New regulations across Europe are pushing organizations to disclose salary bands and justify pay differences. However, focusing solely on base salary overlooks the significant impact of bonuses on total earnings. Bonuses often reflect bias and discretion, contributing to inequality. To effectively close gender pay gaps, organizations must audit opportunity allocation and rethink compensation policies. This includes examining how bonuses are distributed and ensuring equitable access to opportunities that influence performance-based pay.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]