PRACTICE AREAS

Audits of Employment Practices

OFCCP Voluntary Guidelines

We conduct analyses using sophisticated statistical techniques that are widely accepted by courts and by governmental agencies that monitor employment practices. In our studies of compensation we have examined base salaries, pay-at-hire, pay raises, and total compensation, including the individual components of total compensation outside of base pay, such as bonuses, awards, commissions, overtime, and the granting of stock shares and stock options.

We begin our analysis by gathering information about a company's organization and pay practices. From there, we identify "similarly situated employee groupings" (SSEGs) and make pay comparisons between men and women and between each minority group and whites using multiple regression. This technique allows us to control for other potentially confounding factors such as department, employment status (part-time/full-time, on leave, bargaining unit), the quality and continuity of prior experience, education and training, performance, or location. Including, where appropriate, factors such as these allows compensation comparisons to be restricted to similarly situated employees.

After our preliminary (first pass) analysis, if necessary we perform several "diagnostic" calculations. These may assist in (1) identifying miscoded data or omitted or poorly specified factors in the regression, (2) identifying problem jobs or departments, (3) identifying the source of any existing pay disparities (such as either pay at hire or pay raises), and (4) recommending salary adjustments.

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