The pay review and ESG
As the pay review cycle is well underway, this is the first of a three-part mini-series on your pay review priorities.
Recently, I’ve had several conversations with Reward professionals along the lines of ‘I’m too busy to think about ESG, I’m in the middle of the pay review’.
Well, the pay review is an integral part of ESG and squarely impacts social and governance factors and outcomes. Let me explain how this is the case by linking some important pay review issues to five of the UN Sustainable Development Goals:
1. Goal 1: no poverty and the real living wage
2. Goal 5: gender equality and the gender pay gap
3. Goal 8: decent work and economic growth and pay ranges
4. Goal 10: reduced inequalities and the pay budget distribution
5. Goal 16: peace, justice and strong institutions and pay transparency
ESG is not just about climate change.
So, please, don’t underestimate the important role you play as a Reward professional all year round in supporting the UN SDGs. ESG is not just about climate change. It’s about making radical decisions – including on pay – to achieve the 17 goals by 2030.
Whatever sector you’re in and however big or small your organisation is, base pay, incentives, benefits and pensions are all part of your Responsible Reward offering. By linking your sustainability and remuneration strategies, you become an employer, an investment and an investor of choice. If you wish to explore this topic further, feel free to book a call with me.