Equity

Meaning & Definition

Equity in HR is the concept of equality in work environment policies, compensation, and treatment of employees. It is the process of ensuring that employees receive support and rewards based on their roles, performance, and needs. Equity is different from equality because while equality is based on treating people the same, equity is based on ensuring that people receive fair outcomes.

Important aspects of Equity

• Encourages fair compensation practices.
• Improves diversity and inclusive, bias-free decision-making.
• Enhances employee trust and confidence.
• Eliminates pay gaps and biases.
• Builds employer reputation and employee retention.

Applicable Regulations & Policies

The equity principles are reinforced by the following Indian laws:

• Code on Wages, 2019, prohibits gender-based discrimination in the payment of wages and provides equal remuneration.

Organizations must adopt fair compensation practices and unbiased HR policies.