For the past few years, but certainly more recently, public companies, not-for-profits and even private companies have been pressured by staff to be more transparent with their compensation policies and practices, especially as it relates to the equal pay conversation and initiative.

Further, some states and municipalities are starting to adopt regulations focused on equal pay in order to close the wage gap, such as Philadelphia’s Wage Equity Ordinance that will restrict employers from requesting job applicants’ prior salary history, which goes into effect in May.

These trends are causing more employers to conduct pay audits to ensure their internal pay rates are current with the market, and to assess if any individual or gender pay gaps exist, and, if so, where pay adjustments or changes to existing compensation practices and policies are needed. As a consequence of such an audit, a cultural decision may be warranted regarding the communication process to all employees regarding pay transparency.