Over the past several years, the call for employers to provide equal pay for equal work has increased, as have the number of discrimination claims and OFCCP ‘s oversight into fair pay compliance. Use these 3 Simple Steps to Validate that you have equitable pay practices and protect your organization:
- Start with a well-defined Compensation Plan that includes pay ranges to reflect different levels and labor categories. current job descriptions that outline the job responsibilities and requirements for each position. You can do this by Identifying your benchmark positions, those with a clear and consistent definition in the relevant labor market, for which reliable market data can be collected. You can use these positions to set pay for higher- and lower-level positions in the same job family. Make sure you review job descriptions and conduct market analysis regularly, at least every year or two.
- Communicate with employees and managers. Develop good policies and procedures to support your pay plan and processes. Ensure that any pay anomalies are handled and that policies are set into place for hiring and promotions to support the plan going forward. Transparency is key. Pay negotiations for new team members should consider the candidate’s qualifications and experience for a specific position and not be based on salary history.
- Conduct employee Pay Audits at least annually to determine if compensation is equitable. You’ll need to compare employee demographic data with pay data to ensure no organization-wide or departmental disparities exist. If there are disparities, it is better to catch them before an employee claim or an OFCCP audit. Be sure to take immediate steps to correct any pay disparities that cannot be explained by objective workplace criteria.
Remember, employees have the right to receive the same pay when they have a substantially equal skill set, level of effort, and are performing tasks under the same working conditions. If you need assistance in preparing Job Descriptions, creating a Compensation Plan, or conducting a Pay Audit, our certified HR professionals at Rocket City HR Consulting can help!
