Approaches for undertaking a faculty salary equity analysis are discussed. An institutional researcher must have a clear understanding as to why the study is being performed. Faculty handbooks and policy manuals are good starting points for determining how salary decisions are made. Once the salary allocation criteria have been identified, the next step is to translate those criteria into quantifiable variables. Much of the data needed for variables representing individual qualifications can be obtained from records maintained by the university personnel and payroll departments. The most reliable data elements probably will be those used in ongoing administrative processes like payroll and reappointment. Statistical procedures and tests of significance that are helpful to the researcher include: the chi-square, t-test, correlation, and analysis of variance. Three multivariate techniques frequently used for salary studies are analysis of variance, analysis of covariance, and multiple regression analysis. Choice of regression techniques is determined by whether the study is designed to explain the salary reward system, to predict and monitor individual salaries, or to check for discrimination. Some problems that may arise in interpreting the data are noted. (SW)