Changes in internal policies around Diversity, Equity, Inclusion and Belonging are pressuring HR departments to prove they are paying their people fairly by using consistent and clearly defined compensation rules, rather than the more traditional discretionary approach, and by eliminating conscious or unconscious bias based on gender, race, or other factors.
The result proves to employees that their total remuneration package is competitive compared to the market as well as fair compared to their peers. It also proves to company stakeholders that compensation management is following a tightly controlled and structured process in line with corporate policies.