Creating Compliant Infrastructures

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There are a few steps you can take to protect your business and employees from discriminatory compensation practices:

First of all, do not ask for a candidate’s salary history during the recruitment process. Even if your state and local governments don’t yet prohibit it, the safer move is to simply avoid it altogether. If you haven’t updated or reviewed your hiring process and application forms in a while, now may be a good time to do so. Implementing new ways to measure the quality of hires and candidates can give your business an edge without jeopardizing your compliance or reputation.
At a more foundational level, your human resources and compensation strategies might need some attention and updates, too. Specifically, solid pay grades and salary ranges will be essential for growing businesses to stay in line with their denmark phone number resource compensation strategies. Working with HR consultants can help get you started, and dedicated talent management software with compensation administration tools will keep you on track.
Take an open approach to communication, especially around compensation. It’s an easy way to build an internal culture that is more naturally resistant to discriminatory pay practices creeping in. Of course, this doesn’t mean publicly discussing everyone’s personal compensation information. Rather, it means that employees should understand why they’re paid what they’re paid, and they should feel comfortable asking any and all questions about their compensation.
For a deeper dive or check-up, work with human resources or compensation consultant who has experience with small businesses. They can conduct advanced statistical analyses of your pay rates to identify any inadvertent discrimination and then give you a roadmap for rooting it out.
The main idea is to be proactive. Few employers today consciously put discriminatory compensation practices in place at their businesses, but the systemic nature of these issues means that they can creep in, particularly through salary history and the recruitment process.

It all starts with educating yourself! The world of discrimination regulations can certainly be confusing, and there are plenty of misconceptions floating around, too. With new gender equity laws on the horizon, it’s more important than ever that your business understands pay discrimination.