Managing Pay Equity with the Latest Technology

There are various processes within a company that can be tough. For one, processes involving workers’ compensation is a good example. There are massive data, complex models, and various aspects to consider for these processes.

To make things easier, firms use the latest technology. One example is compensation management. They usually have compensation software to help with tedious and time-consuming tasks. Also, pay equity is one of the most talked about topics involving pay. As a result, firms also employ the latest tech to manage it.

Compensation Management

Every company uses compensation management. This is the process of managing, analyzing, and finding out the salary and benefits a worker should receive. It is a vital aspect of a company’s talent management.

It includes cash and non-cash rewards that companies offer. Firms do this to boost workers’ performance, keep them longer, and attract new talent. This process is also critical to ensure the company uses it budget efficiently.

Pay Equity

This refers to workers receiving equal compensation for the same job roles. This does not only cover a worker’s salary. It also includes other rewards and benefits, a worker can receive. Pay equity is one of the key drivers to close the gender pay gap.

For companies, pay equity covers all issues involving fair compensation. It has been an ongoing fight to ensure all workers receive fair pay. Firms also use this practice to help attract and keep their workers. This is in addition to its main purpose of battling gender pay gaps.

Challenges in Pay Equity

The fight to achieve pay equity is not always smooth. There are challenges along the way. One is the lack of commitment and awareness from leaders. Strong leadership is not enough. They should also be aware of and observe efforts linked to pay equity.

There is also the lack of pay data for firms to use. To achieve pay equity, firms must have metrics to guide them in creating intelligent decisions. For this reason, benchmarking is a critical aspect. Sadly, firms are having a tough time to do it.

Ineffective Technology to Support Pay Equity

One major challenge for firms with pay equity is having ineffective technology. Sadly, there are still those who are using spreadsheets today. This can limit the progress companies can achieve when it comes to pay equity.

According to the Ventana Research, 72% of organizations still use spreadsheets for pay management. Only 15% of this group found no errors in using this tool. Although spreadsheets are one of the key tools that firms use, they cannot support the complex process involving pay equity.

Technologies to Help Manage Pay Equity

Firms use a wide range of technology to ensure they can achieve pay equity. Here are some of them.

Compensation planning software

These are tools that experts use to help find pay gaps within the company. This can help them collect and analyze data to guide in creating an effective pay plan.

Job Evaluation Software

Firms also need a tool to review job roles. This is critical to ensuring they can achieve pay equity. The tool should have the ability to work with other applications that firms use for pay management.

HR management software

Organizing everything involving the workforce can be tough. For this reason, the HR team uses a tool that is specific to their needs. This tool can help manage all data about the workforce. This data is critical to the practice of pay equity.

Salary surveys

Pay data can be hard to access without the right tool. This is where salary surveys come in. This is vital so firms can accurately compare jobs and pay ranges.

Benefits of Using Technology for Pay Equity

As everything evolves, so does the tools firms use. This includes the ones to ensure they achieve pay equity within the workplace. Here are some of the benefits of using them.