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Coming Soon: Revolutionize Your Workplace–Embracing the wave of pay transparency

by Audrey Croley Little



The landscape of pay transparency is evolving rapidly, with legislation sweeping across the nation.


While not every state has enacted laws yet, the trend is unmistakable. In anticipation of compliance with diverse state regulations and to uphold fairness and equity within your workforce, strategic planning for an internal equity audit is imperative. A proactive approach is best even if the full impact of pay transparency hasn't reached your organization. It's time to proactively align your internal processes and ensure your current employees are treated with transparency and respect, as they are observant and informed.


Here are six steps you can take:


1-Request a Comprehensive Employee Report:

a. Employee Name

b. Job Title

c. Hire Date

d. Job Date

e. Current Pay

f. Documented Performance (Backed by tangible examples)

g. Supervisor

h. Gender

i. Race/Ethnicity


2-Review and Compare:

Evaluate employees in similar or comparable roles.


3-Refer to Employee Files:

Check education and experience details, preferably within your HRIS.


4-Determine Market Alignment:

Assess pay in relation to the market using compa-ratio or range penetration. Your pay structure should

mirror the prevailing market trends.


5-Identify Discrepancies:

Ascertain if any employee's pay deviates significantly that can’t be justified with documented performance outcomes.


6-Adjust Compensation:

Calculate the cost implications and make necessary pay adjustments.


Remember to be proactive. It’s not just a recommendation; it's a best practice.


Ensure your Compensation Policies and Procedures are current and adhered to through training for your people managers. Develop a robust Performance Management Program where results are meticulously documented. Craft a formal pay structure based on high-quality data sources. When extending pay offers, conduct internal equity assessments upfront to save time and potentially prevent legal issues.


Last but not least, Conduct an audit on an annual basis—preferable mid-year. If pay increases are required, this is a good time because it will be totally unexpected.


Need assistance navigating this evolving landscape? let's talk!



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