Pay equity is no longer just a talking point—it's a critical component of a fair and transparent workplace. As companies strive to build diverse teams and ensure everyone is compensated fairly, tracking the right metrics becomes essential to maintaining equity across all levels of the organization. This blog explores seven key metrics every organization should monitor to proactively address pay gaps, disparities in promotions, performance ratings, and more. With Pequity’s powerful compensation platform, staying on top of these metrics is easier than ever, empowering your team to take action and promote pay equity across your workforce.
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Track Pay Gaps: Are Employees Within 5% of Peer Medians?
- Why It Matters: A quick glance at peer groups can reveal pay gaps that might otherwise go unnoticed. By ensuring that no employee is more than 5% above or below their peer median salary, you can quickly flag potential inequities before they become larger issues. Pequity’s platform makes it easy to monitor and visualize peer pay comparisons in real time, allowing you to take immediate action where necessary.
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Monitor Promotion Rates by Gender and Race
- Why It Matters: One gender or race advancing faster than others can lead to long-term pay inequities. Pequity tracks pay history and promotion velocity, helping you identify if certain groups are being promoted disproportionately faster or slower, and flagging any potential biases in advancement decisions that can impact future pay equity.
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Analyze Representation by Level and Department
- Why It Matters: You may have pay equity within a role, but if one gender or race is clustered in lower-paying roles or levels, there’s a bigger issue. Pequity’s platform provides a deep dive into diversity metrics, allowing you to visualize the density of gender and race by role, level, and department, so you can address potential pay equity concerns that aren’t immediately obvious in salary data alone.
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Track Performance Ratings to Ensure Fairness
- Why It Matters: Pay often follows performance, so if one group is consistently receiving lower performance ratings, it can directly affect their compensation. Pequity’s tools allow you to analyze performance rating distribution across gender and race to ensure all employees are being evaluated fairly and to prevent systemic biases in pay decisions down the line.
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Monitor Pay Increase Frequency Over Time
- Why It Matters: Pay inequities don’t happen overnight—they build up over time. By tracking average pay increases over the last 18 months by gender and race, you can identify whether one group is receiving more frequent raises during comp cycles or outside them. Pequity helps you track long-term trends in pay increases to ensure consistent and fair compensation practices.
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Evaluate Pay Band Positioning (Compa-Ratio) by Group
- Why It Matters: It’s normal to use the full range of a pay band when rewarding employees, but if one gender or race is consistently below the midpoint, it may indicate a deeper issue. Pequity’s compa-ratio tracking allows you to see where each group falls within the pay band and identify patterns of inequity across your workforce.
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Analyze Tenure by Gender and Race
- Why It Matters: A balanced pay structure may look good on the surface, but if your organization isn’t retaining certain groups, pay equity may be less of a factor than turnover. Pequity helps you track tenure by gender and race, providing insights into whether certain groups are leaving more frequently and whether retention strategies need to be adjusted.
How Pequity Helps You Track and Maintain Pay Equity
Pequity is designed to help you automate and simplify the process of tracking key pay equity metrics. With real-time data and advanced analytics, you can:
- Monitor Pay Disparities: Pequity automatically flags employees whose pay falls outside your desired range, helping you proactively manage pay equity.
- Track Promotion and Performance Trends: Our platform provides insights into promotion velocity and performance ratings, so you can address inequities before they widen.
- Customizable Reports: Pequity’s customizable reports allow you to share pay equity insights with your leadership team and HR partners to ensure transparency and action.
Ready to Enhance Pay Equity in Your Organization?
If you’re ready to track and improve pay equity in your organization, Pequity’s platform offers the tools you need to monitor these key metrics and more.
Access the latest compensation data and ensure pay equity with Pequity. Contact us to see how we can enhance your compensation strategy.