Pay equity legislation, while aiming for fairness, may cause unintended consequences like increased hiring scrutiny, job polarization, and reduced performance incentives. Employers might face higher administrative costs, shift towards contract work, and decrease job flexibility and benefits to comply. This could lead to wage compression, unintended discrimination, increased litigation, and impact global competitiveness. Such actions might not only elongate hiring processes but also disadvantage candidates with unconventional backgrounds and potentially affect company morale and profitability.
What Are the Unintended Consequences of Pay Equity Legislation?
Pay equity legislation, while aiming for fairness, may cause unintended consequences like increased hiring scrutiny, job polarization, and reduced performance incentives. Employers might face higher administrative costs, shift towards contract work, and decrease job flexibility and benefits to comply. This could lead to wage compression, unintended discrimination, increased litigation, and impact global competitiveness. Such actions might not only elongate hiring processes but also disadvantage candidates with unconventional backgrounds and potentially affect company morale and profitability.
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