Equal Pay Day: Building Pay Equity & Transparency as DE&I Programs Are Cut

Equal Pay Day, observed on March 25, 2025, is a stark reminder of the continuing pay gap in the United States. Women working full-time still earn only 83 cents for every dollar paid to men, with even wider disparities for women of color. According to the American Association of University Women (AAUW), Latinas earn just 58% of what non-Hispanic white men make. Despite decades of progress, pay inequities remain a serious issue. Yet, achieving pay equity is becoming more difficult.

The Wall Street Journal reports that major banks are scaling back diversity programs in response to legal pressures. JPMorgan Chase, Morgan Stanley, and Citigroup have cut these initiatives, leaving HR and individual managers to handle pay equity and transparency without dedicated DE&I oversight.

The Importance of Pay Equity and Transparency

Money matters—and fair pay does more than keep employees happy. Companies that are open about pay practices and treat employees fairly build stronger teams and create a workplace where people want to stay. In contrast, businesses that ignore pay disparities risk legal trouble and a loss of employee trust.

Pay transparency also strengthens company culture, showing employees that performance—not bias—drives compensation. People who believe they are paid fairly are more productive, engaged, and committed.

Building Fair Pay Programs That Work

A strong pay structure does more than meet legal requirements—it provides transparency, consistency, and a foundation for fair compensation. Ensuring pay equity means actively finding and fixing disparities before they become widespread problems.

Here are three strategies to help organizations move in the right direction.

1. Dig Into the Numbers
Examine pay patterns every quarter to see who earns what across teams and jobs. Break down the data by role, experience, and division. This will help you identify gaps early.

2. Create Clear Pay Rules
Write down pay ranges that make sense for each position. Then, show employees exactly how raises and promotions work. When everyone knows the rules, bias has nowhere to hide.

3. Set Real Standards
Give raises and promotions based on hard numbers and concrete achievements. Explain exactly what success looks like in their role. When performance drives decisions, everyone has a fair shot.

Enhancing Pay Transparency

Pay transparency goes beyond meeting legal requirements—it helps build trust and ensures employees understand how compensation decisions are made. Clear communication about salaries and raises gives employees confidence in their pay and strengthens engagement. To promote fairness and clarity in pay practices, organizations can:

• Put real pay ranges in writing: Create clear salary tiers for each role. This will help employees see their earning potential and what it takes to advance.
• Share the pay playbook: Tell employees exactly what drives salaries—market rates, skills, and years in the field. No mysteries.
• Get managers talking straight: Give your leaders real training on discussing pay without dancing around it.
• Draw the roadmap: Show people exactly what it takes to earn more through performance, hitting targets, and moving up.
• Know the law: Since some states require salary information in job posts, get your process in place now—don’t wait until it’s too late.

These actions build trust. When employees understand how pay is determined, they are more likely to remain with your organization and stay motivated. Over time, you earn a reputation for fairness and integrity.

Using Talent Intelligence to Close Pay Gaps

Talent intelligence analyzes workforce data to help organizations make fair pay decisions. Rather than addressing pay disparities after they surface, companies can use data to spot and correct gaps early, creating a more equitable compensation system.

Organizations can leverage talent intelligence in several ways to close pay gaps and promote fairness:

• Analyze pay gaps by demographic factors: To detect disparities, compensation data should be regularly reviewed on gender, race, and other demographics. 
• Ensure fair salary offers from the start: Use data-driven benchmarks to prevent pay disparities at the hiring stage.
• Monitor promotion and raise trends: Track how salary increases and career advancement opportunities are distributed across the workforce.
• Detect hidden bias in performance reviews: Identify trends that may unfairly influence pay and promotion decisions.
• Adopt AI-powered compensation tools: Use technology to standardize pay decisions and eliminate human bias.

Instead of treating pay equity as a one-time fix, organizations should view it as an ongoing process that data and technology can help sustain 

Advancing Pay Equity with Data-Backed Decisions

With DE&I programs shrinking, companies must take deliberate actions to ensure fair pay. Without clear processes, pay gaps persist—eroding trust and increasing turnover.

Talent assessments that remove bias from the hiring and promotion process can help you make fairer decisions. Cangrade’s AI-driven tools analyze data to ensure pay structures are based on skills and performance rather than personal judgment. Organizations that rely on clear, measurable compensation criteria create a more equitable workplace and reduce pay gaps.

By prioritizing data-driven pay structures, you will build a stronger, more resilient workforce. Fair pay is not just ethical—it’s a competitive advantage.

Contact Cangrade to learn more.