Companies conduct pay audits for a variety of reasons—whether it’s to ensure the company is meeting certain benchmarks, to comply with audit requirements under state or federal laws, to promote or improve workplace diversity initiatives, to investigate and remedy disparities, etc. And while pay audits have numerous benefits, they are not risk free. However, with the right steps, companies can reduce and protect against some of those risks. This article discusses some of the pros and cons of pay audits and steps companies can take in conducting them to ensure that the processes and results remain protected under the rules of privilege and minimize potential risks.
