Best Practice (Good)
Conduct analysis of compensation data to identify any pay discrepancies that may exist across gender, race or ethnic lines, and make appropriate adjustments to eliminate any unjustified disparities found.
Typical Practice (Bad)
Use time consuming, manual data collection and sampling to collect or track compensation information as it relates to age, gender or ethnicity.
Benefits: Developing HR systems with this sort of analysis in mind can reduce effort required to produce these compensation reports and, consequently, may help in protecting the company against unwarranted lawsuits or defamation.