How to Address Pay Disparities for Underrepresented Groups

8 June 2025

Let’s be honest for a sec. We’ve all heard the phrase “equal pay for equal work” more times than we can count. But when you peel back the layers, what you find is a messy, complicated reality. Pay disparities—especially for underrepresented groups—are still very much alive and kicking.

Now, before you throw your hands up in frustration, take a breath. This post isn’t just another deep dive into statistics or corporate jargon. Nope. We’re going to unpack this issue like a mystery novel—full of clues, plot twists, and the occasional villain (hello, unconscious bias).

And by the end, you’ll have a clearer idea of how to help build fairer workplaces. Whether you're a leader, a team member, or just someone who's sick of the status quo, buckle up. We’re getting into it.

What Are Pay Disparities Anyway?

Let’s start with the basics. Pay disparities happen when two people doing the same job—or jobs of equal value—are paid differently. Sounds unfair? That’s because it is.

But here's where it gets trickier: these disparities don’t happen randomly. They often fall hardest on people from underrepresented groups—think women, people of color, folks with disabilities, and the LGBTQ+ community.

The wage gap isn’t a myth. It’s a stubborn, persistent reality. And no, it’s not just about negotiation skills or job choices. There are deeper, systemic issues at play.

Why Do Pay Gaps Exist?

If we want to fix the problem, we’ve got to understand the roots. So, what’s really feeding the pay disparities?

1. Unconscious Bias is Sneaky

Let’s say you’re hiring someone. Two resumes land on your desk—same experience, same skills. But one has a name you’re more familiar with. Who do you lean toward?

That instant preference is often unconscious bias. It doesn’t mean you're a bad person. But it does mean these hidden biases can lead to lower offers, slower promotions, or being overlooked entirely.

2. Opaque Pay Structures

Ever tried figuring out what your coworkers earn? Not so easy, right? When companies keep salary info under wraps, it’s easier for inequality to creep in. And guess who it affects most? Yep—underrepresented folks.

3. Historical Inequities

Let’s face it, we’re still living with the consequences of decisions made decades ago. Systemic racism, gender discrimination, and exclusionary practices have created a snowball effect—and today's pay gaps are part of that legacy.

Real Talk: Why Should Businesses Care?

Okay, suppose a company is crushing their revenue goals. Why should they care about fixing pay disparities?

Because fairness isn’t just “nice to have.” It’s a business imperative.

- Retention: If people feel undervalued, they bounce. Period. And replacing talent? That’s expensive.
- Reputation: In the age of transparency, word gets around fast. If a company is known for pay inequity, good luck attracting top talent.
- Performance: Diverse teams outperform the status quo. But only when they’re actually valued—and paid like it.

How to Address Pay Disparities for Underrepresented Groups

Now for the million-dollar question: how do we fix this?

One step at a time. Here’s your roadmap, clue by clue.

1. Start With a Pay Audit (The Truth Serum)

Think of a pay audit like turning on the lights in a dark room. Suddenly, you can see what’s really there.

Analyze salaries across roles, genders, ethnic backgrounds, and other demographics. Are certain groups consistently earning less than others for similar work?

Be honest with the data. It’s your best ally in uncovering hidden gaps.

2. Get Transparent With Your Pay Practices

Stop treating pay like a state secret. When you’re clear about salary ranges, raise criteria, and promotion processes, employees know where they stand—and what’s possible.

It’s about building trust. And bonus? Transparency puts pressure on decision-makers to be consistent and fair.

3. Standardize Compensation Processes

Bias thrives in ambiguity. That’s why it’s critical to standardize how you determine salaries, bonuses, and raises.

Use structured guidelines. Ensure managers follow the same playbook when evaluating performance or deciding pay. If the rules are clear, there’s less room for subjective judgment.

4. Close the Gaps With Adjustments—Not Excuses

Here’s a nugget nobody talks about enough: once the data reveals a gap, it’s not enough to say “we’ll fix it eventually.”

Address it now. That might mean issuing pay increases to those underpaid. Is it a cost? Sure. But think of it as an investment in equity, culture, and credibility.

5. Train Managers (Because They Make or Break It)

Managers are the gatekeepers of promotions, reviews, and raises. Empower them with inclusivity training, unconscious bias workshops, and data on historical disparities.

The goal isn’t to guilt-trip anyone—it’s to build awareness and change behavior. Most people want to do the right thing. They just need the tools.

6. Make DEI More Than a Checkbox

Diversity, Equity, and Inclusion (DEI) programs shouldn’t be side projects. They need real resources, clear metrics, and leadership accountability.

Tie DEI goals to performance reviews. Celebrate the wins, but don’t shy away from the gaps. Culture change is slow, but it begins with bold, visible steps.

7. Listen to Your Employees. Seriously.

Create safe spaces—anonymous surveys, listening sessions, community groups—where people can speak freely about their experiences. Sometimes, the biggest insights come from the quietest voices.

And hey, when someone raises a concern, don’t go into defense mode. Pause. Listen. Reflect. Then act.

8. Review Job Descriptions and Recruitment Language

Words matter. If your job listings are filled with corporate lingo or gender-coded language, you might be unintentionally turning candidates away.

Use tools to check for bias. Focus on skills—not career history gaps or brand-name schools. Talent comes in all packages.

9. Offer Equitable Opportunities for Growth

Pay equity isn’t just about base salaries—it’s about access to bonuses, mentorship, growth projects, and leadership pathways.

Ask yourself: who’s getting the stretch assignments? Who’s invited to strategy meetings? If the same faces always show up, it’s time to widen the circle.

What About Small Businesses?

You might be thinking, “Cool, but we’re a small team. We don’t have HR analysts or giant budgets.”

Fair point. But you don’t need a Fortune 500 setup to make meaningful change. Start with:

- Keeping salaries consistent for similar roles
- Being open about ranges from day one
- Asking for feedback regularly
- Paying attention to who’s speaking up—and who’s not

Even small steps add up, and they signal your values loud and clear.

The Final Plot Twist: It’s Not One-and-Done

Here’s the kicker: addressing pay disparities isn’t a checkbox you tick off forever. It’s a process. A cycle of listening, revisiting, adjusting, and holding yourself accountable.

But the reward? A workplace where people feel seen, respected, and fairly rewarded.

And that is priceless.

Wrapping It Up

We’ve covered a lot. From hidden biases to clear strategies, you now have a map to tackle pay disparities for underrepresented groups. But don’t stop here.

Start the conversations. Run the audits. Ask the tough questions.

Because fair pay isn’t just a policy—it’s a promise. One that says, “You belong here. And your work matters.”

Isn’t that the kind of place we all want to build?