Inclusive Pay Equity: Addressing Nonbinary Inclusion

HR Dive advocates for expanding pay equity discussions to include nonbinary individuals and address intersectionality, emphasizing transparent data collection and anonymous surveys to identify and rectify workplace pay inequities. These recommendations aim to promote more inclusive workplaces and reshape organizational strategies to ensure fair pay practices, fostering greater employee trust and satisfaction.

Sarah Reynolds, Chief Marketing Officer, HiBob, highlighted that pay equity discussions often focus on the gender pay gap between men and women, overlooking nonbinary individuals and broader intersectional aspects. "Oftentimes, I see a male-female split, and I wonder where I am. Did I get counted? Did I not get counted?" Reynolds questioned.

Mariann Madden, Pay Equity Co-Lead,  WTW North America, noted the challenges in gender data collection. Few companies collect data beyond male and female, and those that do may face trust issues among employees regarding data use. Madden pointed out that organizations beginning to collect nonbinary information usually have robust diversity, equity, inclusion, and belonging (DEIB) initiatives.

Employers typically gather limited gender information during hiring or onboarding and rarely update it, according to Madden. This results in insufficient data to identify pay inequities and potential unintended pay gaps due to small sample sizes.

Reynolds suggested that companies build trust through transparency and intentional efforts. They recommended gathering demographic information inclusively during onboarding, allowing employees to share their identities and ensuring that this information is collected and stored in a way that respects their preferences, privacy, and security.

Reynolds also stressed the importance of encouraging employees, especially those from marginalized communities, to share their true identity. "The reality is that organizations do not always create the type of trusting relationships that make employees, particularly those from traditionally marginalized communities, feel comfortable about self-identifying," they said.