Not only does a commitment to pay equity showcase your values and care for employees, but it’s also required by law. To ensure fair and compliant pay practices, organizations often implement a pay equity audit. A pay equity audit is a review of the organization’s compensation practices to identify and address any pay disparities.
Understanding Pay Equity
Pay equity refers to ensuring equal pay for equal work, regardless of gender, race, ethnicity, or other protected characteristics. Pay equity addresses systemic biases that have historically undervalued work predominantly performed by women and minorities. Pay equity remains important, as the gender pay gap still exists.
Steps to Conduct a Pay Equity Audit
According to the Society for Human Resource Management (SHRM), 75% of organizations surveyed conduct a regular pay equity analysis. And pay equity continues to gain steam. To improve or implement a pay equity audit, follow these steps:
