Pay Equity

In recent weeks, many organizations have been examining the racial diversity and equity within their firms. Organizations can take various approaches to promote equality and inclusion in the workplace, one of which is achieving pay equity.

Why is pay equity important?
Pay equity is mandated and protected by legislation including:
• Equal Pay Act
• Title VII of the Civil Rights Act,
• Age Discrimination in Employment Act
• Americans with Disabilities Act
• State pay equity laws

When conducting a pay equity analysis,
DO:
1. Work under attorney client privilege
2. Include all compensation analysis, not just base pay
3. Develop methodology for addressing identified pay gaps
DON’T:
1. Put off the analysis until a claim is filed
2. Forget to develop a communications plan
3. Remediate pay gaps without consulting with legal counsel
Why now?
Many organizations have reservations about analyzing pay gaps within their organization as it may
unearth some unfavorable practices and impact employee relations. As compensation experts, we urge
you to set your fears aside and take whatever measures necessary to achieve pay equity. It will protect
you from legal consequences, increase your employee engagement, and provide balance and diversity
within your firm.

Our nation is currently experiencing a wave of activism for racial equality, and many organizations are
capitalizing on this time to examine internal practices that can be adjusted to promote inclusion and
equity. Now is a perfect time to conduct a pay gap analysis in your organization. If your analysis returns
results that indicate few changes need to be made, your employees will appreciate you for
demonstrating your equitable approach to compensation. If your analysis reveals several issues, you can
take the opportunity to communicate clearly with employees about the changes you will make to
resolve pay equity problems, and they will appreciate your commitment to identifying and remedying
compensation gaps. Take advantage of this time when transparency and change are valued and
accepted to investigate your compensation practices and resolve any pay gaps.

How can we help?
Compensation Works can partner with you to assess potential risks and conduct a thorough pay gap analysis. We don’t just identify pay gaps; we analyze the results to determine root causes and provide
you with recommendations to remediate pay gaps and avoid them in the future.

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