Using a Pay Equity Audit to Identify — and Fix — Pay Inequality at Your Company
A recent Harvard Business Review article suggests that less than 25% of large companies have conducted a Pay Equity Audit (PEA).
At the POE Group, we believe the first step to ensuring equitable pay is to determine if bias exists, which a pay equity audit would help to determine.
Waiting for a lawsuit is not a progressive strategy.
As the article states, "companies who say they care about inclusion and belonging can start by paying employees fairly. To start, initiate a pay equity audit in which you compare the pay of employees doing “like for like” work (accounting for reasonable differentials, such as work experience, credentials and job performance) and investigate the causes of any pay differences that cannot be justified. Next, determine how you’ll remediate any issues, and identify operational gaps that led to the salary discrepancies in the first place. Finally monitor your hiring, promotion and compensation processes on an ongoing basis."
Read the full Harvard Business Review article here: How to Identify — and Fix — Pay Inequality at Your Company
If your organization is searching for a compensation consulting firm to help conduct a Pay Equity Audit, please contact the POE Group today for a free consultation.