4.2 Conduct salary gap analysis to determine if there are gender differences and adjust salaries to close identified gaps
Content
Description of Best Practices
Conduct periodic salary analyses to determine gender-based pay gaps:
- Within a job category, such as “Junior Engineer”
- Between job categories, such as “Office Manager” and “Field Office Manager,” when both have the same duties but have different salaries and are dominated by one gender
Develop, implement, and communicate a clear and transparent process to remove salary inequities, and track them over employees’ careers
Use certified tools to undertake external salary gap analysis such as PayAnalytics or EDGE certificate
Challenges of Implementation
Some job categories do not currently have enough women to conduct a valid salary analysis
It is difficult and requires time to correctly assess two different job categories to determine if they should be valued the same or differently
Employee and manager push back regarding salary adjustments for impacted female employees
Difficulty in assessing how reduced worktime for women affects merit pay increases (quality vs. quantity)
Costs of external assessment process
What Success Looks Like
Company periodically conducts salary data analysis and addresses salary inequities (i.e., adjust salary of affected person or group)
Corporate-level commitment to pay equity is communicated regularly throughout the company
HR department and managers are held accountable for salary equity enforcement and related benefits, such as pension plans and training for retirement planning
Resources and Tools
Guide (incl. Checklists and Case Studies): Guide to Gender Pay Equity (Workplace Gender Equality Agency, Australian Government)
Guide: How to Analyze Your Gender Pay Gap: An Employer's Guide (Glassdoor)
Tool: Pay Equity Audit Tool Resources (Government of Western Australia)
Tool: PayAnalytics
Tool: GenderGap.AFRICA (Code for Africa)
Certificate: The Global Business Certification Standard for Gender Equality (EDGE)
Example: UK Gender Pay Gap Report 2018 (BlackRock)
Report/Study: Equal Pay: An Introductory Guide (ILO)
Report/Study: Closing the Gender Pay Gap: The Link Between Pay and Happiness (Personal Group)
Report/Study: Global Wage Report 2018/19 (ILO)
Report/Study: A Comparative Analysis of Promoting Pay Equity: Models and Impacts (ILO)
Report/Study: Pay Equity: A Key Driver of Gender Equality (ILO)
Report/Study: Tackling the Gender Pay Gap (UN Women)
Article: Compensation Bias is Bad for Business. Here’s How to Fix It. (MIT Sloan)
Article: “How I Did It” (Human Capital Analytics Group)
Article: Why Companies’ Attempts to Close the Gender Pay Gap Often Fail (Harvard Business Review)
Video: Here Is What Companies Can Do the Close the Gender Pay Gap (CNBC)