outsolve insights

As the fourth quarter rolls around and HR professionals begin prepping for performance reviews, compensation planning, and end of year reporting, be sure to save a spot on your planning and strategic checklist for a pay equity check-up. 

When it comes to employment practices and conditions, fairness truly is a business imperative. As HR professionals, we know that compensation can make or break employee engagement, retention, and even your employer brand.  

Think of your compensation strategy as the blueprint for pay. It defines how your organization sets, manages, and explains compensation. This includes base pay, bonuses, benefits, raises, and the reasoning behind each. A strong strategy ensures pay is competitive, consistent, and aligns with business goals and employee expectations. 

Human Resources (HR) spends a good amount of time supporting and promoting fairness in the workplace, whether it's in hiring, promotions, performance reviews, or compensation. Even with the best intentions, one issue continues to create risk, resentment, and regulatory issues. What is it? That’s pay discrimination. 

Today’s job market is fiercely competitive. Top candidates often have options when it comes to job offers and employers. That’s where it pays to have a competitive compensation structure, so your organization will stand out as an employer of choice for top candidates.  

If you find yourself using the terms pay equity and pay equality interchangeably, then you’re not alone. Even experienced HR professionals can blur the lines between the two. At first glance, they sound like two ways of referencing fair pay. In reality, pay equity and pay equality represent two distinct, yet equally important concepts. Each concept has its own implications for legal compliance, employee engagement, and company reputation. 

Choosing Between a Pay Equity Consultant and Pay Equity Software: What’s Right for Your Business? 

Your internal pay equity audit just flagged a wage gap. Now what? Do you trust a software platform to sort it out for you, or do you bring in a consultant who knows the terrain? 

This article is part of an ongoing legal series designed to provide insight and practical guidance on current and emerging workplace compliance issues. These insights shared by lawyers are based on their interpretation of existing regulations and proposed changes, and intended for informational purposes, not to be regarded as legal advice.

Federal contractors and subcontractors have long been required to conduct annual pay equity reviews under under Executive Order 11246. This process identifies and corrects pay disparities based on race, gender, or ethnicity. Although EO 11246 has been rescinded the value of conducting them still remains as critical as ever. 

Administering fair compensation practices is not just the right thing to do, it is essential for legal compliance, maintaining a positive workplace culture, and for a company’s overall success. Companies that fail to establish non-discriminatory pay practices expose themselves to numerous risks, including legal penalties, lawsuits, and long-term damage to their reputation.