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Follow These 7 Steps to an Effective Pay-Equity AuditPlan Ahead: Set Goals, Get Buy-in and Put the Right Team in Place.Examine Your Pay Practices and Policies.Collect the Relevant Data.Determine Which Employees Perform Comparable Work.Analyze the Data.Take Corrective Actions to Remediate Pay Disparities.
Compensation includes wages, salary, bonuses, benefits, fringe benefits, and equity-based compensation. It does not include tips or reimbursements for any actual costs incurred by the employee, such as mileage, out-of-pocket expenses, or relocation reimbursements.
Salary History ProhibitionThe Oregon's Equal Pay Act prohibits employers from shortlisting job applicants or determining compensation for new hires based on salary history. Seeking salary history from applicants or their previous employers is unlawful.
To successfully perform a pay audit or pay equity analysis within your organization, follow these seven steps:Plan early and plan well.Research your pay policies.Gather the data.Compare the work of employees with similar positions.Analyze the data.Assess whether pay differences are legally justified.More items...
A pay equity analysis, also called an equal pay audit or a pay parity audit, is a method of researching pay rates within your organization and assessing any differences in pay relative to age, race, gender, job description and responsibilities, seniority, and a wide range of other criteria.
So what is pay equity? In general, it means compensating employees the same when they perform the same or similar job duties, while accounting for other factors, such as their experience level, job performance and tenure with the employer, explains Karen Denney, an attorney with Haynes and Boone in Fort Worth, Texas.
Pay equity is equal pay for work of equal or comparable value. It requires comparing jobs typically done by women with different jobs typically done by men.
Equal pay for equal work compares the pay of similar jobs, where women and men are doing the same work, for example: Comparing a female truck mechanic's pay to a male truck mechanic's pay; or, Comparing a female bank teller's pay to a male bank teller's pay.
Follow These 7 Steps to an Effective Pay-Equity AuditPlan Ahead: Set Goals, Get Buy-in and Put the Right Team in Place.Examine Your Pay Practices and Policies.Collect the Relevant Data.Determine Which Employees Perform Comparable Work.Analyze the Data.Take Corrective Actions to Remediate Pay Disparities.