Salary Administration, FLSA Compliance and Pay Equity
Salary Administration and FLSA Compliance
For most of clients, Strategic Compensation builds the base pay structures (traditional grade and range schedules, broadband structures, market pricing) that support the clients’ target market position.
Additionally, we provide the administrative tools needed to ensure equitable pay treatment for common pay decisions, including merit increase planning, promotional and relationship adjustments, and hiring guidelines. And with more employees telecommuting from remote locations, we help clients make sense of geographic pay differentials that can have a substantial impact on HR spend.
As part of our benchmarking process, we also review positions for exempt or nonexempt classification under Fair Labor Standards Act guidelines. Strategic Compensation also assesses pay equity throughout the organization by identifying situations that could suggest a racial or gender bias in the organization’s pay practices.
For many clients, Strategic Compensation provides:
- Spot pricing of new and changing positions to ensure assignment with a competitive pay level.
- Information on market trends and regulatory changes that may affect their businesses, i.e. minimum wage rate changes and salary thresholds for exempt classification.
- Recommendations for merit increase budgeting as well as adjustments to the client’s base pay structures.
- Geographic pay differential data for employees assigned to different sites or who telecommute from remote locations.
Ensuring equal pay for equal (or similar) work is not only the right thing to do, it’s good for business, and an increasing number of states are expanding protection beyond the federal Equal Pay Act to include race and other protected traits.
By demonstrating a commitment to equitable pay, employers can attract top talent, reduce turnover, and improve morale and engagement. Strategic Compensation has the experience and tools to assess your workforce, identify potential areas of concern, and ensure pay parity for all personnel.
Our pay equity study process includes:
- Macro assessments of race and gender distribution throughout the organization.
- Identification of similar roles within the organization.
- Analysis of pay disparities that may indicate potential bias.
- In-depth evaluation of legitimate factors for pay discrepancies, such as education, experience, tenure, etc.
- Recommendation of policies and practices designed address or eliminate risks for unintentional bias, such as blind hiring practices, inclusive hiring panels, and transparent metrics for recruitment and advancement to ensure objective consistency.