The Pay Equity Software Buyer’s Guide
This buyer’s guide is designed to help HR and Total Rewards/Compensation decision makers evaluate pay equity tech options by providing a comprehensive overview of assessment criteria and key features.
In this guide:
Pay equity has become a must-have
90% of companies have conducted a pay equity analysis at some point.
Pay equity is shifting to ongoing management
50% of organizations now conduct pay equity analyses more frequently than annually.
Syndio | 2023 Workplace Equity Trends Report
Want to download this Buyer's Guide as a PDF?
Want to download this Buyer's Guide as a PDF?
Pay equity matters more than ever — but it’s also more complicated than ever.
In the transparency era, pay equity is no longer optional — and the need for consistent and continuous pay explainability has entered the compensation conversation.
The urgency to get pay equity right has never been greater as the transparency era brings pay into the open. Companies must comply with new and emerging laws and address practical considerations such as geo-differentials, compression, and competitiveness, all while facing pressure from investors to track social issues in their ESG framework. And, as pay is laid bare for all to see and employees start asking tough questions about their pay, organizations must be able to clearly articulate how they determine pay, how they apply pay policies to individual employees, and whether pay decisions are equitable and consistent: an emerging business mandate known as “pay explainability.” A once a year analysis does not answer these questions for you — you need always-on software to check and adjust your assumptions as employees continue to enter and exit your company. Ensuring pay equity — and communicating about pay clearly — is no longer just an ethical imperative but a business necessity.
Pay equity software has emerged as a powerful tool for companies seeking digital transformation to more efficiently maintain pay equity in an ongoing way.
Leading companies are leaving behind the annual “pay audit” mindset for a year-round equitable pay management approach aimed at preventing issues. This shift is driven by the recognition that pay equity is not a one-time problem to be fixed, but rather an ongoing challenge that requires continuous attention. However, in a slowing economy, resources are tighter than ever for most HR and Compensation teams, making efficiency a key focus. The traditional approach of outsourcing annual pay equity analyses to law firms and consultants is too slow and retroactive to keep up with increasing transparency demands. Pay equity software can help companies devote fewer resources and less time to analyses through automation, as well as reducing remediation costs over time. By using pay equity tech to gain data-driven insights and continuously monitor their progress, organizations can more effectively reduce compliance risk, keep up with changing legislation, and embed equity into everyday pay decisions. This also fosters a culture of transparency which helps build trust and improve retention. As we move into an era of increased scrutiny around compensation practices, pay equity software is poised to become a critical tool for any company looking to stay ahead of the curve
But not all tech is created equal.
There’s a lot of noise in the pay equity software arena that can make it difficult to determine the optimal solution for your organization’s needs. Additionally, while many companies are leaving behind slow pay equity analyses conducted via consultant and law firms, they aren’t quite ready for a fully self-service, hands-off solution due to the complexities and pressures involved. The best value of both worlds is a vendor who offers a balance of user-friendly software backed by best-in–class methodology with ongoing access to expert advice and guidance.
Who this guide is for
- Total Rewards/Compensation professionals
- CHROs
- People/Workforce Analytics professionals
- HR tech buyers
- Corporate Communications professionals
Questions we’ll answer
- What are key criteria for selecting pay equity technology?
- Who should be involved in the evaluation and decision process?
- How to ensure buy-in and overcome internal objections to investing in pay equity software?
"After two years of using Syndio, we have no more statistical pay gaps based on race, gender, or age. Syndio has helped us achieve this outcome."
Senior Director, Total Rewards
01
Evaluating pay equity tech
- Know what to look for
- Ask the right questions
Know what to look for
Below are the key assessment criteria which elevate a pay equity solution to top-tier consideration.
Uses best-in-class methodology
Not all analyses yield the same degree of accuracy. Proven, expert-driven approaches around groupings, controls, remediation, root cause analysis, and other features strengthen the analysis.
Identifies the root of pay disparities to eliminate them with finality
Not all analyses yield the same degree of accuracy. Proven, expert-driven approaches around groupings, controls, remediation, root cause analysis, and other features strengthen the analysis.
Includes ongoing support from experts to help you take meaningful action
Goes beyond pay equity to close pay gaps
With so much legal complexity around pay equity, you need the peace of mind that your chosen solution is validated by legal experts well-versed in privilege protection.
Has been vetted by lawyers to mitigate legal risk
With so much legal complexity around pay equity, you need the peace of mind that your chosen solution is validated by legal experts well-versed in privilege protection.
Simplifies global pay equity
It’s not easy to manage the complexity of pay equity across countries or jurisdictions with different currencies, rules, and reporting requirements. Look for software that lets you run global analyses by country and across all your employee groups in a matter of seconds, with one-click reports for global statutory pay reporting.
Purpose-built comprehensive solution for pay equity
Is pay equity the company’s core purpose? Many companies have tacked pay equity calculations onto their main tech, but these add-on solutions typically don’t run a true pay equity analysis (but rather, look at averages). Software purpose-built for pay equity will have the full spectrum of what is required for a comprehensive pay equity analysis.
Ask the right questions
Most pay equity tech can tell you what pay disparities you have and who they impact, but fail to pinpoint why those disparities are happening in the first place. Learn the features and capabilities you should prioritize to ensure you get maximum value out of your investment.
01 Streamlined data management
02Efficiency and ease of use
03Comprehensive analyses
04Customizable analyses
05Scalable to full global analyses
06Tailored remediation recommendations
07Robust reporting tools and services
08Included support and expertise
09Validated legal compliance
10Powerful root cause prevention
11Highest levels of data security
12Smooth implementation, adoption, and customer experience
13Credible customer roster
14Capabilities to advance your equity journey beyond pay
Streamlined data management
Unlock insights more quickly
- How easily and quickly are you able to upload your data?
- Do you have to configure your data according to a specific template?
- How often can you refresh data, and can you do so without having to recreate your work?
- Has the platform been tested to ensure that it can ingest and quickly analyze large data sets?
- Can you continuously fine-tune your analysis without the need to re-upload your data and start over every time you make a change or iterate?
Efficiency and ease of use
Take the frustration out of pay equity
- How quickly and easily can you run an analysis?
- Is the user interface clean and straightforward so that the data and results are the focus? Or does the UI feel cluttered, clunky, and confusing?