New Equal Pay Estimator Prevents Pay Inequity From Getting Foothold In The Workplace
Trusaic Solution Helps Ensure Fair Compensation Offer Is Made At Critical Time Of Hire
Los Angeles, Calif., January 21, 2022 – Starting pay is historically one of the biggest creators of pay inequity in the workplace, often perpetuating consistently lower wages over the course of an employee’s career. With an eye toward correcting this trend, Trusaic, a leading regulatory compliance software company specializing in advanced pay equity analytics, introduces the Equal Pay EstimatorTM, an innovative, data-driven tool that can stop pay inequity from occurring in the first place by preventing it at the critical point when an employee is hired.
Pay gaps compound because raises are typically based on a percentage of an employee’s base salary. This cumulative effect is particularly striking from the start of one’s career. Some researchers have estimated that a difference of $1,000 in starting salary can translate into a loss of about half a million dollars over the course of a career. And results from the National Association of Colleges and Employers (NACE)’s First Destinations Survey for the Class of 2020 demonstrate that this wage gap does begin at the very start of new graduates’ careers. Women with newly-issued bachelor’s degrees reportedly earn an average of $52,266, compared to $64,022 earned by men, mirroring the overall pay differential between men and women reported by the U.S. Bureau of Labor Statistics (BLS).
With Trusaic’s Equal Pay Estimator, companies can ensure their compensation offer is equitable. The Equal Pay Estimator analyzes employee details against market rates and internal ranges, in real-time. By simultaneously comparing external wage ranges alongside internal wage ranges, the Equal Pay Estimator helps ensure a fair compensation offer is being made at the time of hire. The tool leverages competitive data from the most reliable market competition database in the world to provide accurate external benchmark metrics and combines it with wage range data developed directly from a pay equity analysis performed on an organization’s compensation data, offering fair pay recommendations to decision makers in seconds.
Trusaic has partnered with Emsi Burning Glass, the industry-leading labor market data and analytics firm, to provide employers with world-class benchmark data to support their compensation decision process. Emsi Burning Glass offers access to the world’s largest and most sophisticated, proprietary databases of job openings and career histories, with data collected from more than 40,000 sources daily and in more than 30 countries.
Equal Pay Estimator is coupled with Trusaic’s diversity, equity and inclusion (DEI) and pay equity analytics software solution, PayParity. The Equal Pay Estimator requires no additional configuration and pulls the information directly from an organization’s pay equity analysis. The real-time results help ensure all pay decisions are equitable and they reduce the need to perform expensive and unplanned pay remediations in the future. The Equal Pay Estimator integrates seamlessly with HRIS and annual compensation cycle systems.
“One of the most effective ways to advance pay and opportunity equity is to proactively prevent pay inequities from ever gaining a foothold,” says Robert Sheen, CEO, Trusaic. “The Equal Pay Estimator can ensure that a company’s compensation offer is equitable in relation to other employees within the organization doing comparable work and competitive relative to the market rates for the position. It allows organizations to demonstrate to their employees and stakeholders that they are truly committed to equal pay.”
Trusaic is a software company that focuses on advancing social good in the workplace by solving HR’s most complex challenges across people, data, and analytics. Trusaic helps organizations achieve pay equity, foster a more diverse and inclusive workforce, assist economically disadvantaged individuals with finding work, and ensure employee access to affordable healthcare.