Salary.com announced new capabilities for its CompAnalyst pay equity suite, a solution that, the company said, focuses on identifying and preventing pay issues.
Sixty-seven percent of organizations face continuously increasing pressure to address pay equity, according to a Salary.com survey. The study, Employer Pay Equity Pulse Survey, found that current employees and job candidates are now the top sources of pressure for organizations to “get pay right” with equity and transparency . In addition, 41% of HR professionals said their organization is struggling to address pay equity, a 10% increase from the year prior. One of the top challenges was learning how to conduct an analysis of their company’s pay.
“Last year we were curious to see how quickly companies would execute new pay strategies to meet heightened employee expectations,” said Salary.com Vice President of Compensation Consulting Garry Straker. “One year later it appears that more companies are struggling and where progress has been made, much of it is in response to pay transparency legislation. Companies are going to have to do better if they hope to continue competing in what remains a very tight labor market.”
Analysis and Evaluation
The new capabilities added to CompAnalyst automate the process of modeling internal pay equity as well as external competitiveness within the market. The company said organizations can also determine the external value of their jobs based on the current compensation market levels for comparable jobs in the market by accessing CompAnalyst Market Data.
The process of the automation includes:
- Grouping comparable jobs to create an internally aligned job structure.
- Pay gap assessment that focuses not only on gender and race but all dimensions and variables that can influence pay.
- Multivariate regressions to identify where pay disparities exist.
- Cohort analyses to determine if there are legitimate factors that explain pay differences and whether pay adjustments are needed.
In addition, the solution helps organizations to create sustainable practices around pay equity and transparency. It aims to develop an effective communications plan relating to their pay with consistent messaging and tools designed to manage employee and stakeholder expectations.