1. Data Quality: Inaccurate or incomplete data can lead to incorrect conclusions. Ensuring data quality is critical. 2. Bias: There may be unconscious biases in the way data is collected or analyzed. Using standardized methods can help mitigate this risk. 3. Confidentiality: Ensuring the confidentiality of employee data is paramount. Businesses must comply with data protection regulations. 4. Resource Allocation: Conducting a thorough pay audit can be resource-intensive, requiring time, budget, and expertise.