What to know about InterConnnect’s pay equity analysis
February 14, 2021at11:00 PM
If you’re worried about employing the best and most current pay equality practices, then you came to the right place. With InterConnect’s pay equity analysis, we assure you we’ll find and remediate any and all disparities in pay that aren’t legally permitted. However, it’s important to remember this isn’t just about preventing lawsuits. It’s about enabling progress and being part of the change.
And, at InterConnect Human Resource Resource services, we’ve been proudly providing consultations and guidance to companies all over the US. We want to make sure both your company and your employees are taken care of. Because it’s not uncommon that simple disparities fall through the cracks. Our 25 years of industry experience allows us to create tailored solutions for clients, and it ensures we’re prepared for any and all challenges.
So, without further ado, here’s everything you need to know about pay equity analysis.
Examining practices and policies and collecting data
The first part of pay equity analysis is simply examining current and historical pay practices and policies. It’s crucial to peruse both so you can create the correct methodology for analyzing and comprehending pay discrepancies.
This requires you to have a comprehensive understanding of all the components of compensation, such as the criteria decision makers used and how much discretion individuals making compensation directives have. Typically, the data collected will include the following:
Hours worked over past 52 weeks
Base wage or salary
Other forms of compensation
However, it’s worth noting additional data may be necessary depending on your circumstances. But leave that determination to us at InterConnect. We’ve got you covered.
Analyze data and assess differences
Afterward, it’s important to determine who does “comparable” or “substantially similar” work. As defined by state law, these phrases have a broader and more inclusive meaning than “equal work.” Basically, “comparable work” is work that requires substantially similar skills, responsibility, effort, and work performed under the same conditions.
Afterward, it’s important to look at the comparable job groups to see if men and women are paid equally within them. And, if not, it’s important to know if these differences are justified under law. Understanding all the nuances and fineprint of the law can be complicated, and in between running a business and your other responsibilities, you may not even have the time to invest. But we’ve been at this a long time. You handle your business; we’ll keep you honest.
Take corrective action
The final step of a pay equity analysis is to take corrective actions. Wherever you see pay discrepancies not supported by federal and applicable state law, you have to then take action to resolve this differential. This usually means you have to make changes to compensation.
But remember: you’re not allowed to reduce pay to resolve disparities. The best way to handle this is to roll changes into annual pay adjustments, and then communicate corrective actions with hiring managers and others responsible for the issues you uncovered.
Schedule a free consultation now to get started!
If you think you might need a pay equity analysis, then chances are you do. But, as you can see, an effective pay equity analysis requires deep industry understanding, as well as a significant understanding of the law. And the only way to cultivate both is to be seasoned veterans like us at InterConnect Human Resources Services.
So contact us now to schedule a free consultation and get started! We want to help you be part of the change. And we’re sure you want to be part of it too.