How to Prepare for the Compensation Piece of Your Audit

This blog was brought you as a part of a new series of blogs, “The Comp Corner,” in which one of our expert consultants will answer specific questions submitted by HR professionals like you!  

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Q: How can I prepare for the compensation piece of my OFCCP audit? 

  

A: Before you can prepare it’s important to understand what type of information you are required to submit to the OFCCP during a compliance review, or audit. There have been some recent changes to the compensation data that’s required for submission, so first it’s important to review the Scheduling Letter and Itemized Listing. The OFCCP seeks to examine the compensation data submitted using a statistical technique called Multiple Linear Regression, which looks at the relationship between multiple explanatory variables in predicting employee compensation and then identifying whether race/ethnicity and gender are significant predictors of pay. It is recommended that you consider conducting these analyses before submitting your available data to the OFCCP so you can understand how the OFCCP will be reviewing your data and can prepare for the types of questions the agency may ask about your compensation data.