In September 2017, the Equal Pay International Coalition (EPIC), was launched as a strategic multi-stakeholder partnership to assist UN Member States in achieving the UN Sustainable Development Goals (SDGs), in particular Goal 8, target 8.5. This target calls for the importance of equal pay for work of equal value by 2030, as well as Goal 5, recognising that equal pay is central to the achievement of gender equality and in particular empowering women.
The Uganda Employment Act stipulates that it's the duty of the employer to provide work to the employee and in return the employee will earn a wage, or a salary based on the contractual obligations that exist between the two parties. Whilst the obligation for work and payment in return exists, the issue of inequality in pay still exists amongst many organisations in Uganda with some organisations using gender as a factor on issues to do with pay as well as placement of individuals in specific roles or positions.
As the labour market continues to evolve, it’s important to recognise a gradual shift in expectations surrounding working life. Regardless of gender, race or other identity factors, employees expect their employers to reward them according to their contribution to the success of the organisation. They also need to feel that they can "be their true authentic selves" at work. When these expectations are not met, individuals may look for other job opportunities elsewhere.
Looking at female talent specifically, findings from the PwC’s 2022 Global Hopes and Fears Survey revealed that women are less likely than men to feel satisfied with pay, ask for a pay raise or promotion, and feel listened to by their managers.
Given the current landscape, it is increasingly evident that implementing equal pay initiatives such as the Equal Salary Certification (ESC) has now become a priority and a key element of employee retention strategy. Just as organisations are keen to showcase their commitment to the Environment Social and Governance (ESG) initiatives, so will be the ESC to show commitment to fairness and gender equality in the workplace.The growing trend on equal pay certification aligns with the global trend towards promoting transparency and inclusivity in the workplace.
Organisations looking to embark on this journey will undergo a certification process consisting of four phases: a statistical analysis, a desktop review and on-site audit, certification, and two follow-up monitoring audits.
The different phases of the certification are as follows:
The activities involved in the certification process are intense and demanding, however, the ultimate reward of becoming the employer of choice will contribute immensely to attraction and retention of the best talent. Thus employers committed to ESC will need to put in the effort to ensure equal pay between women and men for work of equal value in order to reduce the gender pay gap.
In conclusion, it is important to note that, more than ever, organisations are facing increasing pressure in meeting talent demands to facilitate sustainable growth. This has led to challenges on effectively managing reward and benefits costs while maximising returns on the overall investment in human capital. In this evolving landscape where employees are motivated to work for companies that are purpose-led, organisations must ensure that their reward system aligns with their strategic objectives and ESG initiatives. It is therefore critical for organisations to review their total reward and performance strategy to ensure it meets the demands of the modern workforce and remains competitive .
By Sara Kuteesa, Manager People & Change at PwC Uganda
