Pay equity is a hot topic that continues to gain momentum. New pay equity legislation is emerging regularly and pressure is increasing for companies to adopt pay transparency policies. Pair that with news coverage on high profile lawsuits, and it’s easy to see why more employers are preparing to take action.
According to a World at Work and Korn Ferry survey, 60 percent of organizations are currently taking action on pay equity and 33 percent are considering action.
Employer action typically starts with pay equity analysis. But analysis can be complex - especially for larger organizations. More employees means more comparator groups, and bigger companies tend to favor multivariate regression analysis.
Plus, the bigger the company, the more frequently hiring, downsizing, acquisition or restructuring occurs. These ongoing changes mean performing an annual pay equity audit won’t provide up-to-date insights on pay trends.
That’s why larger organizations typically turn to external legal counsel and consultants for their pay equity initiatives. External experts can help perform the analysis and help control the narrative for companies that make their results public.
For law firms and consultants, the growing demand for pay equity services is good for business. But as the demand for these services increases, they’ll need tools to deliver faster, more efficient analysis to maximize profits.
That’s where technology comes in.
How technology can streamline pay equity services
In today’s fast-paced world business leaders want the ability to make unbiased decisions faster. And that applies to people and pay related decisions too. Especially when brand reputation and legal risk are at stake.
Companies taking action on pay equity are focused on two key areas:
- Identifying and resolving root causes of pay inequities
- Remediation strategies and pay equity adjustments
Legal experts and consultants need a way to quickly help their clients achieve these two things. But using manual processes to analyze pay gaps and calculate the cost of pay equity adjustments is time consuming and inefficient. That’s why more law firms and consultants are partnering with HR technology vendors.
Identifying and resolving root causes of pay inequities
First let’s cover how HR technology like pay equity analysis software helps firms with the analysis part of their services.
Built in statistical modelling and multivariate regression analysis essentially does the work for them. Getting results is as simple as importing data into the platform and pressing go. Once the data is in, firms can rapidly:
- Identify pay equity issues at a country, business or job level
- Identify the significant factors that drive pay variance and isolate the ‘illegal’ pay gap
- Understand where pay gaps can be explained by non-monetary factors
- View data on an unadjusted and adjusted basis
- Drill down to monitor progress on pay equity status at an employee level
Visual analytics and dashboards in the platform also make it easy to explain findings and share results with clients.
Remediation strategies and pay equity adjustments
Now let’s cover how technology helps with closing pay gaps.
Pay equity analysis software also includes budget modelling. This means once the data has been analyzed, the software provides budget recommendations and calculates the cost of pay equity adjustments. Adjustment recommendations are provided for specific groups of employees and outliers. Recommendations also include where spend should be targeted to have the biggest impact.
Any actions taken to resolve pay inequity can be tracked in the software at the employee level. This streamlines pay equity audits and makes it easier to track progress.
How technology can address privacy and data security concerns
Data privacy and security is a top concern for businesses. Especially when it comes to sensitive information such as potential pay gaps within their company.
Another benefit of partnering with a technology vendor is data security. The software will be storing data in a cloud-based environment that meets the highest security standards.
The software also makes it easy to control who has access to the results of the pay equity analysis. Clients can determine who within their organization should have access to the data and set user permissions accordingly.
Emerging legislation and media coverage has made the message to employers clear: a strong record on pay equity can protect brand reputation, minimize legal risk and demonstrate social responsibility.
Law firms and consultants should expect to see the demand for pay equity services rise. And those firms want to maximize profit and provide superior experiences will partner with HR technology vendors.
Want to learn more about CURO's partnership opportunities?
CURO combines your local industry experience with our best-of-breed compensation management and pay equity analysis software, to exceed our joint customers’ expectations.
Contact us to learn more. We'd love to hear from you!