ADP (No. 17 on the DiversityInc Top 50 Companies list) has scored a three-peat, taking home the title of one of Human Resource Executive's "Awesome New Technologies," for a third straight year with its Pay Equity Explorer solution. Pay Equity Explorer is an innovative tool that combines data science and benchmarking and is built on the biggest dataset in human capital management, the award-winning ADP DataCloud. The solution was developed to help organizations uncover insights and identify potential areas of risk when it comes to gender or race pay gaps so they can stay competitive in the war for talent.
In addition to the legal requirements for equitable compensation at the state and federal levels, pay equity can impact an organization's ability to attract and retain talent. In fact, a study by Aptitude Research Partners found that organizations that make pay equity a priority see on average 13 percent higher engagement levels, have lower than industry average turnover, and are 19 percent more likely to exceed industry average levels of productivity. What's more, significant pay gaps increase a company's risk profile, as state and federal governments and agencies continue to explore additional requirements and legislation.
"We selected ADP's Pay Equity Explorer as an 'Awesome New Technology' because the solution demonstrates innovation, usability, and value for HR leaders and their organizations," said Steve Boese, Human Resource Executive columnist and HR Technology conference co-chairman. "More importantly, the solution highlights how modern HR technologies can be leveraged to help organizations address increasingly important and pressing issues surrounding equity and fairness in the workplace."
"We're honored to receive this prestigious recognition and continue ADP's leadership in innovation by being the only company to win this award three times in a row," said Don Weinstein, chief strategy officer at ADP. "Pay equity is one of largest talent and societal business challenges of our time. Our goal is to help companies address this issue and uncover where improvements can be made."
ADP designed the Pay Equity Explorer to help organizations gain a better understanding of potential pay gaps and identify specific groups of employees for further analysis. Specifically, the solution:
- Automatically identifies potential pay gaps, the size of the gaps and historical trends for groups of employees in specific EEOC Protected Classes to give employers a sense of how many potential pay gaps may exist in their organization, and where to prioritize further analysis.
- Provides a tool to evaluate each employee to determine the impact of other factors (for example, performance, tenure, education, etc.), with input that automatically updates the size of the potential pay gaps.
- Supplies market-based benchmarking data for identified jobs to help ensure that pay adjustments are not only equitable, but also market competitive. In addition, benchmarking data can be used to set competitive starting salaries based on real market data.