EQUAL PAY: ADMINISTRATION AND ENFORCEMENT CHECKLIST
Ten Steps to an Equal Pay Self-Audit for Employers
1. Conduct a Recruitment Self-Audit
Does your hiring process seek diversity in the qualified applicant pool for
positions?
2. Evaluate Your Compensation System for Internal Equity
Do you have a method to determine salaries and benefits?
Do you write position descriptions, seek employee input and develop
consensus for position descriptions? In unionized workplaces, do you
involve union leaders?
Do you have a consistent job evaluation system? Are jobs scored or
assigned grades? Are positions where women and minorities work scored or
graded according to the same standards as jobs where men or non-
minorities work?
Could a method be used for ensuring consistent pay for people with
substantially similar levels of experience and education who hold jobs
calling for substantially similar degrees of skill, effort, responsibility and
working conditions, even though job titles may be different?
3. Evaluate Your Compensation System for Industry Competitiveness
Do you have a method to determine the market rate for any given job? Do
you ensure that market rates are applied consistently? (i.e., Can you be
confident that men are not being compensated at or above market rates
while women are compensated at or below market rates? Can you be
confident that non-minority workers are not compensated at or above
market rates while minority workers’ compensation is at or below the
market rates?)
Would your company benefit from a fresh approach that updates position
descriptions; assesses skill, effort, responsibility and working conditions of
various jobs; assigns grades or scores; and ensures consistent application of
market rates and external competitiveness?
4. Conduct a New Job Evaluation System if Needed
Do you have up-to-date position descriptions for all occupations?
Do you establish criteria for assigning values to skill, effort, responsibility
and working conditions of jobs? Do you challenge basic assumptions about
the value of skills before assigning points or grades? (i.e., Do you consider
how caring for sick people, small muscle dexterity in typing, and other such
skills may have been undervalued in jobs that have been traditionally held
by women?)
Do you ensure agreement among worker representatives and management
on criteria to evaluate jobs?
Do you assign scores or grades to jobs and allow worker input?
Do you compare your system with market rates and other external
competitiveness factors? Do you consider whether the market has
undercompensated certain occupations or professions before making
adjustments?
Do you assign consistent compensation to jobs within similar grades or
scores, and do you use market rates and other external competitiveness
factors consistently?
5. Examine Your Compensation System and Compare Job Grades/Scores
How does pay compare for positions with similar grades or scores within
your company? On average, are women and minorities paid similarly to
men and non-minorities within the same grade or job score? Are there
legitimate reasons for any disparities in pay between jobs with similar
grades or scores? Can corrections be made to ensure consistency in
assigning grades or scores?
How long do men, women and minorities stay within job grades or scores
before moving up? Do men or non-minority workers move up faster?
What are the reasons that some workers move up faster? Can you take
action to ensure that all workers have equal opportunity for advancement?
6. Review Data for Personnel Entering Your Company
At what grades or positions do men, women and minorities typically enter
your company? Within those grades and positions, are salaries consistent,
or do men, women and minorities enter at different pay levels?
How does negotiation affect entry-level salaries? Are men able to
negotiate higher starting salaries than women or minorities?
How do new hires compare in salary to those already working in the
company in the same grades or positions? Do men, women and minorities
entering the company get paid higher or lower than those who already hold
the same positions or grades? Are there differences by gender or race?
Are changes needed to ensure that new hires are treated consistently and
incorporated into existing compensation systems on a compatible basis?
7. Assess Opportunity for Employees to Win Commissions and Bonuses
Are men, women and minorities assigned projects or clients with high
commission potential on a consistent basis?
Are men, women and minorities with similar levels of performance
awarded bonuses on a consistent basis? Do they receive bonuses of similar
monetary values?
8. Assess How Raises Are Awarded
Is there a consistent method of evaluating performance for all workers?
Do men, women and minorities receive consistent raises based on similar
performance standards? (i.e., Are all workers with outstanding evaluations
awarded the same percentage increases? If not, what are the reasons for the
difference?)
Are men, women and minorities with similar levels of performance
awarded bonuses on a consistent basis? Do they receive bonuses of similar
monetary values?
9. Evaluate Employee Training, Development and Promotion Opportunities
How are workers selected for participation in training opportunities or
special projects that lead to advancement? Are there differences by race or
gender? If so, what can be done to widen the pool to reflect equal
opportunity?
10. Implement Changes Where Needed, Maintain Equity and Share Your Success
Have you made changes to ensure consistency in evaluation of jobs,
assignment of grades or scores, advancement within the system,
performance evaluation, compensation levels, raises, bonuses, commissions
and training? Have you evaluated your compensation system periodically to
ensure that it meets equal employment opportunity goals?
Do you maintain openness about compensation with your workforce? Do
you regularly post job openings and salary ranges within the workplace?
Do you allow employees to discuss compensation issues on their own time?
Are you reaping the rewards of a productive, loyal workforce, and using
your success as a competitive tool to attract the best and brightest workers?
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FAQs
Here is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.
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