Pay equity is crucial for several reasons: - Fairness and Morale: Ensuring fair compensation can boost employee morale and job satisfaction. - Legal Compliance: Many countries have regulations that mandate pay equity, and non-compliance can result in legal penalties. - Talent Attraction and Retention: Companies that promote pay equity are more likely to attract and retain top talent. - Corporate Reputation: Businesses known for fair pay practices often enjoy a better reputation among consumers and stakeholders.