Nordstrom Reaches Pay Equity Across Race and Gender

The Seattle-based retailer has proactively worked to achieve equality in the workplace.

Nordstrom Inc. has achieved 100 percent pay equity and nearly 100 percent pay parity for employees of all genders and races, the company said Thursday.

Pay equity means equal pay for comparable work while pay parity refers to gender representation at all levels of the company.

“Given our long-term commitment and continuous investments, less than 1 percent of our population required adjustments to achieve our goal of 100 percent pay equity,” a spokesperson for the Seattle-based retailer told WWD. “The adjustment costs to payroll were minimal.”

Nordstrom said pay equity creates “an environment where every employee feels valued and respected.”

The announcement reflects Nordstrom's awareness of compensation, diversity and equality issues, which to some extent have come to the fore through the #Me-Too movement against sexual harassment and sexual assault.

Nordstrom said it analyzed the base pay of employees with similar roles, experience and performance to see if they earned equal pay for comparable work.

“At Nordstrom, we are constantly working to create an environment where employees can build long-term and rewarding careers. As a part of this, we believe in paying employees fairly for the work they do, and we are committed to delivering on equal pay for comparable work,” said Christine Deputy, chief human resources officer at Nordstrom.

“Paying our people fairly, regardless of gender or race, enables us to deliver on our commitment to an inclusive environment where we can all be ourselves, contribute ideas and do our best work. This is an area that we will continue to invest in and be vigilant on because equality and diversity makes us all stronger,” said Deputy.

Nordstrom said it has “strong” female representation across the company and that it will continue to build representation of women at all levels.

“Nordstrom has always been focused on having strong gender representation, paying employees fairly for the work they do and making pay decisions that are free from bias,” the spokesperson told WWD. “In the last few years, we have increased our focus in this space and we have made significant investments to understand how we're doing at a more granular level. Additionally, we consider internal equity every time we make a hiring, promotion or pay decision.”