Equal Pay Audit

What is equal pay?

The UK Equality Act 2010 states that men and women in the same employment are entitled to equal pay for like work, work rated as equivalent, and work of equal value. If you do not compensate your employees equally, you face a potential equal pay risk.

What do we mean by like work, work rated as equivalent, and work of equal value?

Like work – colleagues who have the same or ‘broadly similar’ roles involving comparable tasks, knowledge and skills.
Work rated as equivalent – jobs within the same grade/level as defined by a job evaluation framework used to classify roles across different areas.
Work of equal value – work that is not necessarily similar but is deemed of equal value in terms of skills, training and responsibilities.

The most precise way to identify pay discrimination in your workplace is to conduct an equal pay audit that gives you a complete picture of your current equal pay status. While organising and processing pay data may seem like a daunting task, at 3R Strategy, we examine the data in detail and produce an extensive report flagging potential risks.

Could you be at risk of an equal pay lawsuit? Start by completing our Equal Pay Scorecard.

Why conduct an equal pay audit?

Losing valued employees over equal pay issues can be hugely detrimental to growth. Not only is it a point of legal and commercial concern, but the PR fallout may also drive away potential candidates, suppliers and customers. Equal pay audits should therefore be frequent and thorough.

At 3R Strategy, we carry out a deep, objective analysis to ensure your rates of pay meet the legal requirements of the Equality Act 2010. Our comprehensive equal pay audit will:

Identify, explain and, if necessary, eliminate pay inequalities
Help create a culture of transparency around pay
Demonstrate your commitment to equality in the workplace
Highlight your business values to investors, partners, employees, suppliers, customers and clients

Our in-depth equal pay policy audits help organisations to effectively measure the pay differences between groups of employees on the basis of ethnicity and age, as well as gender. We analyse roles according to like work, work rated as equivalent, and work of equal value across regions and business units, helping you to identify and resolve the underlying drivers behind pay differences.

Read our whitepaper on how to carry out an equal pay audit or get in touch to discuss areas of concern and how to avoid equal pay claims.