Most organisations believe their pay is fair. Few have checked. An internal equity review tests that belief, looking at whether people doing comparable work are paid consistently, and whether any differences have a reason the organisation would be comfortable explaining.
UAE labour law requires equal pay for women and men doing the same work or work of equal value, which gives the exercise a legal dimension as well as a practical one. But the stronger reason to do it is trust. Unexplained gaps tend to surface eventually, and they do more damage when someone else finds them first.
What an equity review looks at
An equity review compares pay within groups of genuinely comparable roles, usually the same grade and job family. It asks whether differences can be explained by legitimate factors such as:
- performance and contribution
- relevant experience and skills
- time in role or recent promotion
- a documented market premium for scarce skills
- location or entity, where pay policy differs
What remains after those factors are taken into account is the gap that needs attention.
Five steps
1. Build the comparison groups
Group employees by grade and job family. This step depends on a sound grading structure. If similar roles sit in different grades, fix that first, or the analysis will not mean much.
2. Gather consistent pay data
Use the same pay definition for everyone, usually total fixed pay, and look separately at bonus outcomes. Include the factors you will test, such as performance ratings, hire date and promotion history.
3. Look for patterns
Compare pay within each group against characteristics that should not influence it, including gender and nationality. Look at compa-ratios, bonus outcomes and promotion rates, not just salaries.