Pay Equity and Fair Pay
New legislation governing Pay Equity and Fair Pay have proliferated over the last few years and will continue to test the perception and actual fairness of your pay system. Manager’s decisions on hiring rates, promotions or other types of remuneration may have legal consequences for you. Employee perceptions of equitable pay practices can also have far-reaching implications.
Companies seek assistance with Pay Equity because:
- Compliance is especially necessary and important
- It is unknown how to “fix” things – Remediation of cases
- Policies are problematic and it’s unclear which ones are the drivers
- The importance of demonstrating that a commitment to DEI has practical implications to how employees are treated
- Timing of a project can also influence budget funds available for other compensation and business priorities
Our experience in Pay Equity includes:
- Partnering with stakeholders (human resources, legal, finance, executives) to achieve desired outcomes
- Determining appropriate cohort groups — groups that should be comparable based on job content and other factors
- Creating models to calculate pay ratios and standard deviations indicating significance of differences in pay and relevance to your objectives
- Helping to determine overall reasonable solutions for specific situations
- Communication and Training plans and materials
Alliance Compensation can manage your project in order to assess current pay practices and consider any remedies that may result from a review of the results. You’ll thus have the opportunity to identify and reduce risks, which in some jurisdictions may be used as an affirmative defense to litigation brought against the company.
Related Services and Links
Pay Policies are a related service to Pay Equity: Pay Policy | Compliance | Alliance Compensation.