Pay equity is a real fragile concept that makes sure that all your employees are paid the amount equal to their efforts. In recent days HR professionals and hiring managers are paying real attention to Pay equity inside the Organization.
It’s really important for every organization to ensure pay equity to:
- Reduce the risk of litigation and cases
- Prevent your brand image from public damages
- Prevent the feeling of unfair treatment between employees
There has come a culture shift where employees have understood that it is their right to be paid fairly. They want to be paid on their efforts, rather than on their race, religion or other external factors. In short, Pay Equity has become a necessity to retain top talent and build a healthy culture in your organization.
What do you need to maintain Pay Equity?
Maintaining Pay Equity has become a huge stressor as your organization gets bigger. But it can be maintained if you have collected the right data before deciding an Employee’s salary.
Document your pay processes and policies
Your Primary step towards Pay Equity is to maintain a recorded schedule of pay processes and policies. You need to Document all your processes and create Standard Operating Procedures ( SOP’s ) for it. This will make sure that you have a set of policies to maintain Pay Equity in your organization.
For the next step, you need to focus on collecting data about your current payment policies and your employee satisfaction towards it. You need to collect a ton of data points to asses the current condition of Pay Equity in your organization.
This step will help you understand where your organization is currently lacking and how you can improve it.
Find out the efficiency and contribution of each employee
Now you need to set up data collection methods to constantly monitor the efficiency and contribution of each employee to your organization. The bigger you get, the more confusing this will be without a set procedure.
You need to set up foolproof systems that will constantly monitor each employee and present that data in the form of a readable report.
Analyze the data and deliver results
When all your data is collected and Analyzed, you need to schedule a separate time to review it. This can be done on a monthly or weekly basis depending upon your employee count and size of your organization.
But you should always take some to take a look at the results and get meaningful results from them.
Doing all these steps mentioned above manually is excruciating. That’s where a compensation management tool like Compport will come handy.
How do you use software to ensure pay equity?
Here are 5 reasons ( and 1 Bonus Reason ) how compensation analytics software will be beneficial for you in ensuring equal pay:.
You can get employee level suggestions
Pay Equity software will help you get a suggestion from each employee inside your organization. When you are able to identify the opinions of each employee and act, two things happen in tandem.
- You Identify your opinion of each employee and that gives you a new perspective towards your business.
- When each employee can get a seperate platform to voice their opinion, they feel empowered.
At the end of the day, getting suggestions from each employee will empower you to take better business decisions on a pace unseen.
You can conduct a quick analysis to determine pay gaps
With a Pay Equity Analytics tool, you can also drill down on your employees salary and performance on a department-wise basis. This will allow you to perform quick analysis of employees who are overpaid or underpaid in your organization.
You can also compare the salary of each employee according to the Industry benchmarks and identity where you stand.
Find employees are paid higher or lower than the average compensation
As I’ve stated above, a Pay Equity Analytics tool will help you identify employees who are paid above or below the standard compensation rates in the market. You can get a detailed report and cut down on your budgets wherever it is unnecessary.
Find Instant suggestions for salary packages( for new hires )
It can be hard to set up compensation for a new hire. This is even harder if the employee is hired in a completely new role in your organization.
A pay analytics tool will help you solve this problem by identifying role wise suggestions fr each new hire. With these suggestions and industry specific insights, you can identify the compensation that will be the best for each hire.
We live in a world where data is abundant, so it’s always better to make your decision backed with solid Data.
Identify pay gaps based on gender, demography and other factors:
A Pay Analytics tool will help you identify if employees of a certain age, gender, religion or race are underpaid. This will allow you to recognize discrimination inside your organization and identify the person responsible for it.
You can then set up foolproof systems to prevent any sort of these discriminations in the future. As you know a healthy culture with Pay Equity equals a successful Organization.
Most Important: You can perform Cost Analysis to identify areas of improvement
Finally, when you have information on the payment policies of all the employees in your organization, it becomes easy to perform a Cost Analysis. You can identify the departments and roles where excessive budgets are allocated.
You can also identify employees who are underpaid in your organization. With all this data you can set the right metrics and reallocate your budget to the right department..