Businesses are failing to see the value in conducting equal pay reviews (EPRs).
That is according to the Chartered Institute of Personnel and Development (CIPD), which has conducted its 2009 reward management survey.
The survey reveals that just over half of companies have or are planning to conduct an EPR.
Therefore, the CIPD believes the government should push the business benefits of such reviews, but not make them compulsory.
Commenting on the benefits, Charles Cotton, reward adviser at the CIPD, said: “Employees who feel unfairly treated are unlikely to be engaged and motivated to help the business succeed.
“Conversely, well-informed, fairly treated employees are more likely to be powerful advocates and motivated contributors to the future success of their companies.”
The CIPD also suggested that the government should “outlaw gagging clauses” that prevent employees discussing their salary with colleagues and instead promote “transparency”.
Internet giant Yahoo has announced that it will be freezing employee pay to cut costs.
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