Overview:
Local employers in Hamilton County join forces to drive pay equity for women, with the Michelman Company implementing a minimum living wage of $24 an hour. The initiative aims to address economic disparities and systemic inequalities, impacting employees positively by allowing them to save money and pursue their dreams.
By Nicole Armstrong, Bridget Doherty, Michelle Hopkins
Local employers committed to pay equity for women at the Hamilton County Commission on Women & Girls’ 3rd annual Pay Equity Commitment Signing Day on April 9. Commissioner Vice President Denise Driehaus formed the Hamilton County Commission on Women & Girls several years ago to address gender inequities. This class joins an impressive list of more than 80 organizations and businesses that have taken the pledge already.
One such employer, the Michelman Company, shared a firsthand account of how the Pay Equity Commitment helped a single mother make a living wage. The Michelman Model is called, “Integrating Pay Equity Into a Culture of Engagement and Belonging.”
In 2022, Michelman, a global developer and manufacturer of eco-friendly materials and an Ellequate-certified employer, signed The Hamilton County Pay Equity Commitment, a voluntary initiative sponsored by the Hamilton County Commission on Women & Girls, to help close the gender wage gap in Hamilton County.
A year into their commitment, Melissa Young, Michelman’s Director of HR, participated in the first Pay Equity Learning Series. This innovative program, a partnership between Ellequate, The Hamilton County Commission on Women & Girls, and The Women’s Fund of the Greater Cincinnati Foundation, is designed to offer employers practical tools for fostering pay equity. Young shared, “I went to the Pay Equity Learning Series primarily because we had signed the Pay Equity Commitment with Hamilton County… I was going with the intention of collecting as many tools as I could to make sure that we were living up to the commitment that we made.”
One of the sessions, led by Nicole Armstrong, Founder & CEO of Ellequate, highlighted the undervaluation of roles typically held by women and people of color, a revelation that deeply impacted Young.
Motivated by the session, Young embarked on a pay equity audit—an analysis to identify and address discrepancies in compensation structures. She uncovered that despite competitive pay rates, the company’s lowest paying positions were predominantly occupied by women and people of color. She dug deeper, exploring the real-life impacts of pay decisions on her team members, including how minor pay increases could unintentionally create financial hardship due to the loss of government benefits—a phenomenon known as the “cliff effect.”
Determined to address these challenges and with research in hand, Young proposed a new minimum living wage of $24 an hour at Michelman. The proposal was approved by the leadership team without hesitation. Rick Michelman, President & CEO explains, “Implementing a minimum living wage was motivated by our commitment to social responsibility, fairness, and ethical business practices. It ensures that all of our associates receive a wage that not only allows them to cover basic living expenses, but also provides a dignified standard of living for themselves and their families. Linking the minimum living wage to a broader DEI Initiative begins to address economic disparities and systemic inequalities that exist throughout our community. It’s just another way that Michelman is Innovating a Sustainable Future.”
The introduction of the new living wage at Michelman has had a profound impact on its employees, fueling hope and providing them with the means to chase their dreams. One single mother shared her transformative experience: “Before, I was living paycheck to paycheck, just working to pay my bills. But now, I am able to save some money. This is a huge benefit for me. I wasn’t able to do that before. I can walk through a grocery store and buy something without having to think about it twice. This is a big change in my life and my little girl’s life.” With this financial uplift, the future shines brighter for her and her family: “I feel a sense of relief because I don’t have this financial burden anymore… I feel like my work is valued now and I’m doing it even with more passion and dedication… The wage increase gave me hope. I feel more powerful now. I feel like I can reach all my goals now.”
Armstrong offers guidance for those starting out on their pay equity journey: “It’s essential to craft a thoughtful compensation philosophy that aligns with your organization’s goals and values while also addressing the realities of market-driven disparities. Recognizing the internal value of a role is just as important as understanding its market value. This ensures that pay is not only fair but also reflects a genuine commitment to creating a workplace where all people can thrive.”
“Hamilton County’s Pay Equity Commitment and this collaborative community initiative, go beyond basic fairness. They lay the foundation for a stronger community by addressing systemic poverty, employee satisfaction and retention, and lead to business sustainability,” says Mary Maune of the Hamilton County Commission on Women & Girls. “Which is why more and more businesses in Hamilton County are signing on and using this as a recruitment tool to build and grow their organizations.”
Young was a speaker at the signing event at Memorial Hall, with 40 area businesses in attendance to publicly commit to furthering their equitable pay and hiring practices with their organizations. For those interested in deepening their commitment to pay equity, by participating in the next Pay Equity Learning Series, reach out to Mary Maune of the Hamilton County Commission on Women & Girls, or Nicole Armstrong of Ellequate, for more details.