Applied Statistical Data Sciences: Pay Equity Compliance and Auditing
March 10, 2022
Applied Statistical Data Sciences: Pay Equity Compliance and AuditingDownload Service Sheet
FTI Consulting’s labor and employment practice has extensive experience working with outside counsel to help companies perform quantitatively rigorous pay equity audits to identify compensation disparities among the workforce, the reasons behind said disparities, and actionable information to rectify these disparities before they become a legal concern.
Too often, when companies perform pay equity audits, they either attempt to do so themselves or hire a third-party consultant. Whoever performs the audit often does not possess the expertise and experience to sufficiently scrutinize which employment processes may be generating the disparity, as well as whether potential exists for legal exposure (namely due to the disparity itself, but also possible because potential suggestions made to rectify the disparity actually lead to other disparities.)
Why We Are Unique
We are unique in that we are Ph.D. economists who have met and conferred with both government agencies (EEOC, DOL, DLSE, various state-level enforcement entities) and private plaintiff firms for conciliation and mediation purposes related to the pay equity and compensation-related employment processes. We use cutting-edge software such as Python, Gephi, R, SAS, Stata, SQL, and Tableau to assist the client in holistically assessing the company’s employment data and workforce, providing results that are statistically sound and litigation ready (should the need occur). Our advanced analytical techniques also allow us to find potential issues not previously considered by management through infographics and intuitive data visualizations.
- Compensation analysis – by company, location, division, department, pay grade, etc.
- Regression analyses to identify significant disparities – base compensation, bonuses, stock options, etc.
- Hiring and promotions assessment – these two employment practices directly dictate compensation and are often identified as contributing to significant pay disparities
- Hierarchical corporate structure assessment – does the companies structure need to be adjusted – job titles, allocation of work, team construction, etc.
- Compensation structure – adjustments to pay grades, discretionary compensation, etc.
- All analyses use multiple statistical methodologies – test, regression analysis, propensity matching, etc.
- Statistical analyses performed on any identifiable protected group to ensure litigation-ready work product – gender, race/ethnicity, age, etc.