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Pinto said annual companywide pay equity analyses, when coupled with root cause assessments, remain the most effective tool for identifying unexplained pay gaps and implementing effective strategies to close those gaps at the individual employee level.

Employers should also proactively prepare for and conduct regular pay equity analyses because analyzing pay disparities will allow them to identify where any issues might exist.

Employers also should perform proactive pay equity analyses to determine if employees are compensated the same if they are doing work of equal value, he said.

“Employers have been laser-focused on ensuring equal pay for equal work — and there has been significant momentum and progress made by employers performing proactive pay analyses and complying with pay transparency legislation — but it’s not enough.”

“In our statistical analyses of the effects of HSAs/FSAs on spending, we conducted a series of tests and show that our overall results are not driven by this kind of self-selection behavior. … This is likely strongly related to the use-it-or-lose-it rule linked to FSAs.”

“To prepare, organizations should conduct regular market analyses to benchmark salaries, invest in employee development to enhance retention and consider flexible compensation packages that address diverse employee needs,” he said.

Liebel noted that while Nayya doesn’t perform formal cost-benefit analyses itself, the organization’s research consistently points to a disconnect between the benefits employers provide and the actual value workers derive from them.

This expands a narrow focus on statistical analyses to include the following: Inclusive leadership.

For example, continue to conduct annual companywide pay equity analyses under attorney/client privilege.

;Conduct regular pay equity analyses , especially for DEI purposes, but also when new hires are coming into teams.