| As a leader, one of the most important questions you can — and should — ask yourself is: “Am I paying my employees fairly?” To answer this question, you may need to conduct a pay equity audit (PEA). This means comparing the pay of employees doing “like for like” work (accounting for reasonable differentials, such as work experience, credentials, and job performance), and investigating the causes of any pay differences that cannot be justified. If your organization is small (50+ employees), you may delegate this audit to HR. Or, if your organization is large (500+ employees), it may be a better practice to hire a consulting firm that specializes in pay and rewards. According to a 2019 study, most companies find that up to 5% of employees are eligible for an increase. Addressing pay inequity in your organization isn’t just a moral imperative; it’s crucial for your competitiveness, shareholder expectations, and legal compliance. |
