'A well-designed data model can serve as a real-time monitor,' says whitepaper
Having the right data and modelling can help organisations monitor their pay equity gap amid growing external pressure to address the issue, according to a white paper from Aon.
The paper said better data can help organisations identify the root causes of equity imbalances and gain actionable insights into the factors influencing pay disparities.
"A well-designed data model can serve as a real-time monitor to assess decisions across the business," the paper added.
Data-driven insights can also help organisations allocate a specific budget for practising pay equity management, according to the paper, which noted that this will go beyond relying on traditional metrics, such as CPI and remuneration benchmarking.
It added that using data can also help managers understand how their hiring, promotion, and salary decisions can affect the gender pay gap.
This will lead to "more equitable outcomes" and will help maintain a "consistently fair pay structure across an organisation," the paper stressed.
Overall, having the right data and modelling in place can allow for informed decision-making.
"This approach provides insights into the drivers of pay gaps and equips organisations with a robust framework to set and track progress against key performance indicators, laying the groundwork for measurable, impactful change," the report read.
Pressure to address pay equity
The advice came amid growing pressure on organisations to be more accountable for their pay equity gap.
This year, the gender pay gaps of nearly 5,000 private sector employers have been unveiled for the first time ever to boost transparency and equality in the workplace.
The publication of gender pay gaps puts organisations at a "critical juncture," according to Aon's white paper.
"There is an opportunity for pay equity to act as a catalyst to positive organisational change, driving both strategic and commercial benefits," it read.
The white paper also provided a case study that demonstrates the commercial and strategic advantages of a holistic approach to pay transparency and gender equity. Grab your copy here.
