Wanting to pay employees fairly is nothing new. In fact, since the Equal Pay Act of 1963, most organizations have been trying to achieve fair pay to build their brands, mitigate risk, and simply to do the right thing.
The problem is, the only available solutions—manual, one-off analyses performed in-house or with law and consulting firms—aren’t getting the job done, leaving even the best, brightest and most progressive enterprises battling expensive, brand-damaging lawsuits.
Enter Pay Equity Software. This recent entrant into the Human Capital Management tech stack provides a host of functionality and benefits to help businesses solve unfair pay once and for all. Here are the top 7 reasons enterprises choose Pay Equity Software over traditional approaches.
Pay Equity Software is Faster. Much Faster.
It takes an average of 2-5 months to complete a pay equity analysis without the help of software. First you group employees into groups doing similar work, then you apply controls (compensable factors like tenure or performance). This process isn’t linear; it’s iterative, and you’ll typically need to find and address outliers and complexities in your data. Without software, every time you adjust a group or your controls, you have to wait days or weeks for your team or firm to re-run the analysis and see the impact of your changes.
With software, every change is a click of a button. You see the impact of changes instantaneously. Get the right stakeholders in a room and you can have an analysis done in a matter of minutes or hours. Take that, unfair pay!
It’s On 365 Days a Year
Despite what some law firms might tell you, fairness doesn’t happen just once a year. The best way to build a fairer organization is to look at pay equity frequently. Pay Equity Software provides an always-on baseline that lets you assess pay equity any time you want: quarterly, monthly, after a merger, layoff or hiring spree, or when the inevitable happens: someone—an employee, a board member, an executive—asks a question about pay equity. Wouldn’t it be nice to have a current and accurate view of pay equity at your fingertips, every day of the year?
It Has Built-In Intelligence
Want to add values where your data is spotty? Want to toggle between currencies in a global analysis? Want to instantly assess the effectiveness of pay policies? Want to programmatically identify outliers? Only software gives you that kind of built-in intelligence.
It’s Safer and More Secure
How do firms run pay equity analyses? Well, first you send them your most sensitive compensation and employee data. Then they stick it into a spreadsheet where they maintain control of it. Scary, right? Last we checked, most spreadsheets don’t have SSO, user-based permissions, or seamless integrations with your HCM or HRIS. Software does, giving you end-to-end control of your data.
But wait, there’s more. Software mitigates the risk of incurring costly legal fees in the event of a lawsuit. This is because when you use spreadsheets, every time you make a change and rerun your analysis the results are generated in a fresh, new file. This creates a paper trail of pay equity analyses that can be used against you in a pay equity lawsuit. A Fortune 200 brand we know recently spent hundreds of thousands of dollars in legal fees just trying to get prior iterations of their analysis thrown out. Wouldn’t it be better to have no paper trail at all until you’re 100% satisfied with your analysis, which is the case when using software? We think so.
It’s an End-to-End Solution
If you find inequities, you need to resolve them. That means budgeting for them in a way that most efficiently mitigates risk and ensures fair pay. Pay Equity Software provides sophisticated budgeting tools built into the platform, along with dashboards, data visualizations, and easy reporting tools to help you share your pay equity progress with executives, board members, and, where needed, government agencies.
It Puts You in Control
Because the advanced math and methodology required to run an airtight pay equity analysis are baked into the platform itself, you require less outside expertise and therefore have more control over your analyses. And unlike human-powered approaches, software doesn’t make computational errors, so you can trust the results.
Leading Pay Equity Software companies also provide training and certification, helping your staff gain new skills that puts you at the forefront of pay equity. But know this: even if you use Pay Equity Software, you can still work with outside counsel and maintain privilege. The software helps you simplify, accelerate, and optimize the process.
It Transforms ‘Find & Fix’ to ‘Proactively Prevent’
What’s better than finding and fixing pay inequities? Never having them to begin with. One-off, annual analyses, by design, will always be an exercise in futility for anyone wanting to solve unfair pay.
Pay Equity Software lets you test hypotheses and proactively analyze pay adjustments before you roll them out, so you don’t just attain fair pay, but you maintain it as well.
Leading Pay Equity Software companies are also adding advanced root cause analytics and tools for setting equitable starting salaries, ensuring fair pay from day one. And the software is always improving to support changing legal requirements and organizations’ evolving priorities, so the platform you invest in today will support your fair pay goals in the long term.
Still not sure if Pay Equity Software is the right choice for your organization? We’re here to help. Request a demo to chat with someone on our team about how software can help you achieve fair pay.