Dive Brief:
- JPMorgan Chase is the latest financial company, after pressure from activist investment group Arjuna Capital, to agree to close pay gaps for women and nonwhite workers. JP Morgan became the sixth large financial institution to address pay inequality at Arjuna's request this year, joining Bank of America, Mastercard, Citigroup, Wells Fargo and Bank of New York Mellon.
- JPMorgan disclosed its pay gaps for women and nonwhites after pressure from Arjuna. The firm has targeted nine banks and financial institutions, six of which are assessing and adjusting their pay practices to close gaps to within 99%.
- The financial services industry also has been scrutinized for not having enough women in senior positions, despite the fact that the majority of its frontline employees are women.
Dive Insight:
Shareholders are concerned about how the organizations in which they're invested are being perceived. But increasingly, companies are recognizing the damage that revealed pay inequalities can do to a brand.
A damaged brand repels job candidates, 69% of whom will bypass an employer with a bad reputation for its competitors, a Glassdoor study shows. In this tight labor market with acute skills shortages, employers can't afford to risk their brands by failing to address unfair pay practices, or allegations of misconduct or unethical behavior.
Employers who don't consider how they're perceived by employees might find themselves the topic of criticism on social media sites and blogs. By focusing on enhancing the employee experience and creating a culture based on respect, fairness, development and opportunity, employers can build a work environment worthy of a "best places to work" designation.
