A pay equity audit involves analyzing compensation data to identify and address any disparities in pay based on factors such as gender, race, or age.

It is essential to have a backbone and a budget before beginning the audit.

Having a backbone means having the courage to stand up for what is right, even in the face of resistance. Conducting a pay equity audit may uncover uncomfortable truths about the organization's compensation practices.

Be sure you have leaders who are committed to addressing any disparities that are found. Without a strong backbone, it is easy to sweep these issues under the rug and continue with business as usual.

A budget is also necessary. The audit may require specialized expertise, software, or additional resources to collect and analyze data. Without a budget, you can’t conduct a comprehensive audit, leading to inaccurate or incomplete results.

The budget should include addressing any disparities that are found. This may include increasing salaries for certain employees, adjusting pay grades and ranges, or implementing other policies to promote fairness.

“Courage is not the absence of fear, but rather the assessment that something else is more important than fear.” --Franklin D. Roosevelt

Delivering pay that is competitive, fair, and equitable requires a backbone and a budget. It means saying no to exceptions and scrutinizing decisions that used to be implemented without hesitation.

I see exceptional compensation professionals demonstrating courage every day.

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