At a time when pay transparency feels more important than ever, Innecto’s team of consultants is focusing on how building the right frameworks and structures plays a fundamental role in supporting Pay Transparency and Pay Equity. Here our Director of Business Innovation and Senior Principal Consultant, Sarah Lardner looks at how digital platforms can play a key role.
- In part 1 we noted the ramifications of the EU Pay Transparency Directive [link to blog 1] and the changes in mindset that are sweeping in with the younger generation.
- In part 2, we examined what Pay Transparency means to employers in the UK, [link to blog 2] focusing on readiness and our three core foundations that underpin every company’s pay structure and practice.
- In part 3, we outlined the five key steps for businesses to take on the road to Pay Transparency [link to blog 3]
Here we focus primarily on the role digital platforms can play in aiding Innecto and our clients through this entire process.
- Job Evaluation with Evaluate >>
Job Evaluation is effectively the process of carrying out a job architecture survey for your entire company to define the different roles and levels.
Evaluate – Innecto’s tool for making job evaluation and levelling quick and straightforward
Without a job levelling and job evaluation tool, this process can be slow, cumbersome and resource-heavy for HR, who will find it difficult to model scenarios for aspirational planning.
The Power of Evaluate - makes evaluating roles quick and straightforward, reducing the onus on HR resource and increases confidence that roles are being assessed fairly and consistently. The built-in job description library allows HR to create, save and edit job descriptions and the simple structure enables easy identification of where they sit within the hierarchy of a levelling framework. As a dynamic product, it can help model scenarios and proactively plan for periods of change or growth, providing clarity around requirements for organisational design.
How Evaluate enables Pay Transparency - Understanding comparable role and roles of equal value is an important step towards reducing the risk of costly and high-profile equal pay challenges.
- Pay Benchmarking and Pay Structures with PayLab >>
The process of Pay Benchmarking helps to ensure that compensation decisions are backed by accurate market data, and that they align with the defined pay and compensation philosophy of the organization.
A robust pay structure should allow for fair and equitable pay setting and practices for pay progression that are justifiable and reflective of key criteria like skills, competency, performance and contribution.
PayLab - Innecto’s revolutionary pay benchmarking solution for gaining clarity around your current and aspirational pay stance - including reports by department, gender or ethnicity.
The Power of PayLab – helps to implement and manage simple, standardised pay structures using objective benchmarks and market insights to formulate salary bands for every position and level within an organisation. In helping HR and business leaders to better understand employees’ positioning within pay bands and against the market, PayLab allows for more robust pay decisions.
How PayLab enables Pay Transparency – Paylab includes the ability to generate reports by department, gender or ethnicity. Armed with this information, a company can decide and communicate how achievable it might be in the short, medium or long term to make changes to both internal pay differentials and disparities against the market.
3. Pay Policy, Annual Pay Reviews and Pay Audits with Advance >>
Advance - Innecto’s bespoke solution for Pay Review
Pay Review is a laborious and time-consuming process that can take a lot of time away from finance and HR and can be prone to error if you have an over-reliance on spreadsheets. If you’re still doing it the ‘old fashioned way’, it can be difficult to pinpoint what each employee will receive, and tricky to model the implications of decisions on the business.
The Power of Advance – puts you in control. You can customise and set your annual pay review according to your pay principles, with pay pot distribution and financial planning. By configuring the system to your internal pay practices and policies, you can keep track of spend and model how any decisions you make could affect your pay positioning against your policies year-on-year.
How Advance enables Pay Transparency – By making data available to managers and employees via clever dashboards, Advance brings them along in the process. This can often help counterbalance less contextualized data employees find on Glassdoor or PayScale. A system like Advance will also flag key indicators like the proportion of pay increases by gender, ethnicity, service level, performance and geography to identify any bias or risk to fairness in your existing or aspirational policy.
Gender Pay Gap Reporting - How Innecto and Advance can help – as well as conducting annual or more frequent pay gap or equity analysis, we feel it is important to monitor the effectiveness of your pay transparency through gender pay gap reporting. This kind of reporting helps shed light on the structural causes of inequality, such as occupational segregation or the uneven distribution of family responsibilities. Our Gender Pay Reporting service includes three steps:
- Finding the Headlines
- Uncovering the Risk
- Taking Control
By combining our consultative approach with the power of our tech tools, we can provide a rounded approach that helps organisations meet and go beyond the legal requirement by identifying any underlying factors driving a pay gap.
If you are unsure about your approach to Pay Transparency or the Gender Pay Gap, or simply need advice around your pay policies, please Get in Touch with our consultants for an introductory chat, or to arrange a demo for any of the tech tools above.
