2 Conduct a pay equity analysis

Conducting a pay equity analysis is a systematic and data-driven process of measuring and comparing the pay of different groups of employees who do similar work or have comparable skills, experience, and qualifications. The purpose of this analysis is to identify and address any potential pay gaps or disparities that may exist due to factors such as gender, race, ethnicity, age, disability, or other protected characteristics. It is recommended to conduct a pay equity analysis at least once a year and involve steps such as defining the scope and criteria of the analysis, collecting and verifying relevant data, analyzing the data using statistical methods and tools, and reporting and acting on the findings. This includes presenting results and recommendations to senior leadership, developing action plans to address any issues, and monitoring the progress and outcomes.

3 Establish a pay governance framework

A pay governance framework is a set of policies, procedures, and roles that define how you manage and oversee your global pay equity strategy. This framework should ensure consistency, compliance, and accountability across your organization and address any risks or challenges that may arise from operating in different markets, cultures, and regulations. The framework should include a pay equity committee composed of representatives from different functions, regions, and levels; a pay equity policy outlining objectives, scope, and principles; a pay equity audit involving an independent and external review of data and processes; and a pay equity disclosure to share strategy results with internal and external stakeholders. This disclosure can demonstrate transparency and accountability while enhancing reputation and trust.

5 Solicit and incorporate feedback

Feedback is a vital source of information and insight for improving and adapting your pay equity strategy. It can help you assess the effectiveness, relevance, and impact of your pay equity strategy, as well as identify any gaps, challenges, or opportunities for enhancement. Feedback can come from employee surveys, focus groups, or interviews; manager reviews, evaluations, or reports; customer feedback, testimonials, or ratings; and investor queries, comments, or reports. You should systematically and transparently solicit and incorporate feedback to inform your pay equity committee, policy, analysis, action plans, and disclosure. Doing so will ensure that you are making the most of the valuable insights available to you.