Additionally, RDN can accommodate special requests for analyses that may be unique to an individual firm.
This type of analysis is perhaps the most recognizable among pay audits. The objective is to ascertain whether a firm’s salary and wage structure is equitable. Simply comparing average differences in salary by gender (or race or age) and other selected demographic characteristics is not sufficient as it ignores key factors affecting earnings. We use a detailed regression approach that models pay (and pay changes) as a function of job title, pay grade, education, performance reviews, time at the company, time in the job, exempt/nonexempt status, part-time/full-time status, experience, and other factors. Additionally, significant leaves of absence have been shown to negatively impact workers earnings and thus may contribute to variation in earnings between groups.
Since differences in promotion opportunities may contribute to long term differences in earnings, it is often of interest to determine whether men and women or whites and minorities are promoted at different rates. There are many legitimate factors that can contribute to differences in rates of promotion including education, performance reviews, duration of employment, time in the job, exempt/nonexempt status, part-time/full-time status, and experience. In cases where promotions are not explicitly identified in the data, we incorporate raises, advancement in pay grades and in job titles to identify them in the data. Not only can this type of analysis identify discrepancies, it can provide a guideline to improve promotions decision-making.
In addition to salaries, a firm’s compensation plan may include monetary payments such as bonuses, commissions, and other employee benefits. Such items are heavily tied to performance. Accounting for differences in performance, these items should be comparable across groups.
Similar to a promotions analysis, it is important to address any potential differences in rates of termination across groups. This again involves comparing “apples to apples”, that is, employees with similar backgrounds, experience and performance ratings. In addition to performance ratings, we develop alternative measures of employee productivity.
This analysis explores the hiring process and assesses whether a firm seeks diversity among qualified applicants. Given similar applicant qualifications, we explore whether there are statistically significant differences in hiring rates between men and women or whites and minorities. We work with the firm to develop a solid understanding of the hiring process and key factors that influence candidate selections in addition to qualifications, such as the candidate’s availability and flexibility to work.
In addition to the pay equity audits described above, RDN also has the capability of handling large and complex wage and hour cases involving missed meal and rest break claims as well as unpaid overtime claims.