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Workplace Compliance Spotlight: Identifying Wage Inequality through Data Exploration

Workplace Compliance Spotlight: Identifying Wage Inequality through Data Exploration

Achieving pay equity is top-of-mind for organizations. While organizations have always placed substantial value on talent acquisition, expectations for transparency around equal pay have increased. Given today’s war for talent, a commitment to pay equity is one of the easiest ways to differentiate yourself from your competition. But it’s about more than talent – it’s about identifying possible inequitable pay practices you didn’t even know you had. From a compliance perspective, in addition to the federal EEO-1 report, most states have pay equity laws. Tackling the issue proactively can save you from legal problems now and later down the road. Employers may wish to review their current hiring, job evaluation, and pay practices to ensure that they are compliant and defensible. But the complexities in the regulations and the sheer amount of pay data that exists – internally in every organization and externally in the market – can make it difficult for leaders to develop policies to promote and realize pay equity. Watch the next installment in our Workplace...

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Are Employers Ready to Tackle Pay Equity?

Are Employers Ready to Tackle Pay Equity?

Ahu Yildirmaz, Ph.D. Vice President, ADP Research Institute

The Equal Employment Opportunity Commission (EEOC) has expanded its EEO-1 form to require many employers to submit more information and provide greater transparency around their pay practices. Yet, according to ADP’s 2016 Compliance Confidence Study[1], almost half of organizations responded that they weren’t confident in their ability to comply with the EEOC rule by the 2018 deadline. So, if they’re not ready, where should employers start? Examining their payroll and HR data is key. The data collection needed to comply with the EEOC rules can help organizations uncover and analyze inequitable pay practices, which oftentimes exist without their knowledge. In our latest whitepaper on pay equity, ADP outlines a few steps employers can take when getting started with data: Get familiar with the latest EEOC compliance rules – and how reporting needs to change: Starting in March 2018, employers with at least 100 employees (or those with 50 or more employees that have a federal government contract) will be required to submit an expanded EEO-1 form including additional information...

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