Pay Equity Audit
Equal Pay Laws are often overlooked and ignored by good people, who think they’re treating employees fairly. The reality of employer compliance is really much more complex. Here’s why:
Twenty-four (24) unique pay equity provisions have found their way into every US State, but not all states have adopted all provisions. These provisions identify in greater detail than ever before the practices you can and cannot engage in, and how the courts will respond to employee complaints. These provisions have shined a bright light on the gray areas of the law in respect to wage fairness, and for employers, this means the financial impacts, if left unaddressed, will only grow larger over time.
Understanding non-compliance early, through a pay equity analysis, can help prepare you for annual adjustments to finances. Creating a compensation and communication plan for implementation will expedite compliance and help your business remain competitive.
The top concerns by most companies that discover they are out of compliance include impacts to their bottom line and challenges with employee communication.
If you have $1M in payroll, for example, with a 3% wage disparity, that amounts to $30,000 of additional payroll expenses. The average adjustments are between 3% and 20%.
The Pay Equity Audit is the fastest path to understanding where non-compliance creates risk, and unknowingly, where you may be engaged in wage discrimination.
Vantage Point has the expertise to help you navigate equal pay laws within your state(s). Once we understand the associated risks to your organization we will develop a strategy for compliance and implementation.
4 Steps to a successful equity pay audit, compensation analysis and communication plan:
Collect all job descriptions
Gather all performance reviews
Identify salary & demographic data
Set up a meeting with Vantage Point HR
If you struggle to gather all of this data, or don’t have it, no worries! Give us a call and we will help.
To receive a free copy of Provisions by State, please submit your request here
For a more detailed article on the broad impacts to the 24 provisions, and current trends, please visit our blog article Equal Pay for Equal Work.