Transform Risk into Your Advantage

In today's labor market, pay equity is not just a matter of legal compliance – it’s an important element of your organization’s brand and a powerful differentiator for talent attraction and employee retention. Whether your organization is looking to self-audit potential gaps in its pay structure, fulfill local or national regulatory requirements, or set a public example of achieving equal pay for equal work, Aon can help assess pay equity risk and provide pragmatic near-term and long-term remediation strategies, automated tools and support to help manage risk effectively.

The Challenge

Pay equity analyses must be statistically sound and legally defensible, yet practical in the context of your organization’s job architecture and pay philosophy. Standard approaches to assessing pay won't suffice. 

Our Approach

We work with our clients and their legal counsels to establish clear parameters for all pay equity analyses from the get-go and, where appropriate, to maintain attorney-client privilege from start to finish. We then leverage our familiarity with industry job roles and pay structures to develop employee peer groups and to apply regulator-approved methods for statistical modeling and analysis. Our models identify the extent of any pay gaps and illuminate potential underlying causes.

However, our contributions do not end at the completion of a statistical model. We partner with our clients to develop an integrated pay equity ecosystem that encompasses a complete suite of products and services — including a combination of advisory and technology offerings — to ensure risks are tracked and managed on an ongoing basis as your workforce evolves. Our experienced practitioners guide clients in interpreting and contextualizing the results, educating them on market trends and best practices, and in planning any relevant change management and communication initiatives. Moreover, our automated retesting tools enable clients to test the impact of mid-year updates to employee rosters to facilitate ongoing and sustainable pay equity monitoring between compensation cycles.

Client Impact

Regular pay equity analyses will help your organization manage pay gaps and legal risks with increasing ease, allowing you to make and sustain corrective actions. Organizations that address pay equity on an ongoing basis find themselves in a much stronger position with respect to their employer brand, employee value proposition, pay transparency and fairness.


A Case Study

A large multinational corporation based in the U.S. wanted to take a proactive look at any gender- and race-based pay gaps within their organization.

Leveraging our knowledge of relevant industry roles and the organization’s pay philosophy, we worked with the client to segment the workforce into more than 35 groups of similarly situated employees. We then developed separate statistical models to evaluate pay gaps in each job group. Upon identifying a small number of gender- and race-based gaps, we produced scenarios to assist the organization in considering several approaches to pay adjustments for the affected employees both on a near- and long-term basis.

We continue to provide change management support and strategic advice as the organization prepares to execute and communicate pay adjustments. We also developed a long-term action plan to assist the client in institutionalizing pay equity within its annual pay cycle.

Pay Equity Insights

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