Pay Equity Shortcuts Create Risks For Employers

By Joanna Colosimo, Jon Geier and David Cohen (January 8, 2020, 4:59 PM EST) -- Due to the evolving challenges in getting pay equity right across the country and globally, employers are being tempted by vendors claiming that their software and/or services can conduct a reliable pay equity study literally overnight. But buyer beware: There are no simple solutions to such a complex task.

This article alerts readers to the dangers of conducting a pay equity analysis without due diligence and attention to best practices. Specifically, the article identifies: (1) the legal risks of utilizing simplistic pay equity solutions; (2) how failing to accurately model an organization's compensation structure and pay groupings may yield incorrect results; and...

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