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Performing Equity Analysis to Ensure Fair Pay Across the Organization.

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Pay equity is a fundamental part of total compensation practices that foster competitiveness and transparency across the organization while empowering managers to make pay decisions based on performance, equity, and market conditions.

Conducting a pay equity analysis and taking corresponding actions should extend beyond simply complying with statutory pay records or disclosing pay ranges for job openings. This critical compensation process involves ensuring that employees performing similar roles are paid equitably, with pay decisions made independently of factors such as age, ethnicity, gender, race, or religion. If HR or Legal identifies any disparities, organizations should address them by adjusting pay for affected employees, revising compensation policies, and ensuring that future decisions are based on objective criteria.

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