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Policy Watch - Compensation

Compensation has long been a key driver in recruiting, attracting and retaining employees. Human resource professionals are integral to creating a compensation model that attracts talent, enhances engagement and retains employees—all while adhering to appropriate regulations and disclosure rules.

With women comprising nearly half of the U.S. labor force and increasingly fulfilling the role of family breadwinner, pay equity is a fundamental feature of the workplace and an issue that has garnered attention from policymakers and media alike. In addition, executive compensation has come under public scrutiny as stories of rising executive pay have captured headlines.



Current Issues

The following specific issues are of particular concern to human resource executives and the organizations they serve:

  • Compensation Equity. To address the gender gap in pay, the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 prohibit gender-based wage discrimination in the workplace. Under these laws, depending on performance and seniority, jobs that have the same functions and similar working conditions and that require substantially the same skills must be compensated equally.
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  • Executive CompensationExecutive pay levels and the standards companies use to determine pay were put under the public microscope as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank) which includes provisions to expand regulatory oversight of executive compensation. 
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