Conducting a pay equity audit
A pay equity audit is a detailed analysis of payroll data to identify where gender pay differences and gender pay issues exist within a workplace.
A pay equity audit is an important step in addressing workplace gender issues. After undertaking a pay equity audit, organisations are better able to identify where gender pay inequities exist within their workplace and can then adopt strategies to remove barriers to workforce participation and career progression for female employees.
Identifying those areas where there are larger than average gender pay gaps can facilitate the development of targeted pay equity strategies.
The Pay Equity Audit Tool
The Western Australian Pay Equity Audit Tool is one part of the Pay Equity Audit Toolkit.
The Pay Equity Audit Toolkit is a resource package for organisations to use in turning data from a pay equity audit into achievable pay equity strategies. The Developing Pay Equity Strategies handbook in the toolkit details five steps to analyse audit data, develop a pay equity action plan and implement and communicate gender pay strategies. The toolkit also contains six pay equity solution sheets that provide strategies and actions to address gender pay issues.
The Pay Equity Audit Tool is an automated spreadsheet that is designed to assist organisations to undertake a pay equity audit. The Audit Tool was developed by the pay equity team at the Western Australian Department of Commerce (Labour Relations Division).
The Tool aids in the data analysis process by creating tables and charts based on payroll data, showing gender pay gaps and other indicators such as the prevalence of flexible working arrangements.
Using the Tool streamlines the technical process of data analysis, so that the organisation can instead focus on other aspects of a pay equity audit. The broader review process includes:
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analysing the results of the data analysis;
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attempting to assess whether gender-based discrepancies that are found are justifiable or explainable;
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identifying areas for further investigation; and
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developing recommendations for corrective action.
Getting started - using the Pay Equity Audit Toolkit.