Compensation-related chatter among employees has become less taboo these days amid changing pay transparency regulations. As such, insurers that don't devote adequate attention to pay equity are at greater risk of recruitment and retention troubles.
"People talk. It reinforces the need for a rational, explainable, and defensible set of pay practices and policies so you're beyond criticism or reproach," said Ed Steinhoff, managing director at compensation consulting firm Pearl Meyer.
Pay-equity analysis requires a fair amount of statistics, sophistication, and investment, Steinhoff said. Midsize and smaller companies might not have as many resources as their larger counterparts, he added. "This is something they should focus on, but with more constrained resources, they're not able to be as proactive in some cases."