Equity Review

Definitions
Internal Equity
Also known as internal consistency; compares jobs inside a single organization in terms of their relative contributions to the organization's objectives.
External Equity
Also known as external competitiveness; refers to how an employer positions its pay relative to what competitors are paying.
General Guidelines
  • Equity reviews ensure that salaries for positions are internally consistent and externally competitive.
  • External equity reviews are warranted if significant discrepancies exist between a position's salary and prevailing salaries positions in other companies or institutions within the same geographic area. Difficulties in recruitment and retention support the need for an external equity review.
  • Equity reviews and any salary adjustments resulting from such reviews should not be used to address performance issues.
  • Compensation decisions must be made without regard to race, gender, national origin, religion, age or sexual preference. Every effort must be made to ensure that equity exists and the concept of equal pay for equal work is embraced.
How do I request an equity review?
Submit the following items to Classification and Compensation:
  1. A job description detailing the position's responsibilities.
  2. An organization chart showing all positions in the department. Include names, titles and line numbers (salary grades, other supporting data can be helpful in expediting the review process).
  3. A cover memo explaining:
    • The need for the review.
    • Whether the basis is internal or external equity.
For reviews based on internal equity provide:
  • A list of positions you consider to be comparable to the position in question and the departments they belong to. Positions may be compared if the majority of the job functions are similar.
  • The title of the direct supervisor for each of the positions on your list. Positions may be compared if they have similar reporting relationships.
For reviews based on external equity provide:
  • A list of companies or institutions that have positions with similar functions as the position under review. Include national surveys and surveys conducted by professional associations if appropriate. Include contact name, company address and telephone number. Classification and Compensation will review the material and recommend appropriate action to the Vice Presidential Coordinator.
  • A brief summary of the functions performed by the incumbents of the positions and the number of incumbents per company or institution.
  • The average salary paid by each company or institution for the position under review.
Note: To document recruitment and retention difficulties, please provide the following information:
  • A list of line numbers in your department with the same title as the position under review. Indicate filled and vacant lines, and how long the lines have been unfilled.
  • A list of incumbents including length of time in position.
  • A summary of your recruitment activities, including:
    • How many times the position was posted.
    • How many candidates were interviewed.
    • How many candidates declined the position and why.
  • Copies of newspaper ads for similar positions that support the higher salary.
  • Any additional documentation that supports the need for a higher salary.