Do men and women receive equal pay within your organisation?

Equal pay is an important issue and one that is worth getting the full facts on. Many organisations approach the subject by aggregating all of the men’s and women’s salary figures and comparing the two averages. However, you can’t compare apples with oranges. Factors such as training, function and experience affect a person’s salary. And of course, if there are pay gaps within your organisation, you’d like to know what exactly causes those. What is the best way to tackle this issue as an organisation and how do you get the correct insights?

War for talent

Equal pay is a topic that is high on the agenda at many organisations. Research has shown that diverse and inclusive teams are more productive and contribute to innovation and creativity within organisations. As the labour market is tightening, it is important for organisations to demonstrate their diversity and inclusiveness. This way, you can make your talent pool bigger and increase your appeal as an employer.

Remain compliant

Meanwhile, there has been an increasing focus on organisations’ social responsibility. More and more people say that equal pay should become a legal requirement. In Iceland, this is already a fact: organisations with more than 25 employees are legally obliged to pay men and women in the same positions the same salary. The United Kingdom obliges employers with 250 or more employees to publish and report specific figures about their gender pay gap. There is a legislative proposal in circulation in the Netherlands.

What gets measured gets managed

How can you check whether men and women receive equal pay within your organisation? You can get a rough idea by comparing all male employees with all female employees, i.e. by looking at the nominal pay gap. However, this won’t give you the full picture, because it doesn’t take into account any potential differences with regards to education level, years of service, work experience or age. AnalitiQs developed a tool that can help you with this challenge.

Equal Pay Checker

To ensure you are comparing apples with apples, AnalitiQs developed the Equal Pay Checker. You provide us with the data of your organisation, and AnalitiQs does the analyses. We deliver the results in an online interactive dashboard (see below).

You can create a cross section of your organisation based on age, if you want to see the differences for each age category for example. And what’s even more interesting: you can get an insight into the factors that explain the nominal differences and see which of those factors have the biggest influence.

The Equal Pay Checker can demonstrate whether your organisation offers equal pay. The outcome can subsequently provide clear starting points for the optimization of your salary policy.

Frequently asked questions

Which data/variables do you need for a study into Equal Pay?

Experience shows that at least the following variables (or derivatives thereof) are required:

  • Gender
  • Salary (plus fixed allowances) based on a full-time contract
  • Age
  • Job level or job weight (possibly derived from salary scale)
  • Professional field or job family
  • Country/location (if the study includes several countries)

In addition, any other variables that affect salary, such as work experience and training, can be used.

We don’t have all required data and/or our data is of low quality. How should we deal with this?

Depending on the quality of your data, there are several options:

  • Ask employees for the missing data through questionnaires or by asking them to complete their details in the HR Information System (HRIS).
  • Use only part of the population. Is it a representative sample of your total workforce? In that case, you can make statements about all employees in your company. If only the data of a specific subgroup is of sufficient quality, the analysis can be conducted for that specific subgroup.
  • Use the variables that are available. Find out more about which variables are absolutely necessary in the previous question.

Is the tool safe?

Yes, data privacy and security are top priority for AnalitiQs.

How do you safeguard the privacy of our employees?

We don’t use any names or contact details. We convert dates into less traceable variables, date of birth for example, can be replaced by age, and starting date can be replaced by starting month.

Is it possible to use this tool outside the Netherlands?

Yes, it also adheres to the legal guidelines of, for example, the United Kingdom.

What kind of analysis methods do you use?

For the Equal Pay analysis, AnalitiQs makes use of a combination of the following methods:

  • T-test
  • Regression analysis
  • Random Forest
  • Rake Method

Want to know more?

With a view to potential future legislation as well as finding and retaining talent, it is a good idea to get an insight into any pay gaps that might exist within your organisation, so that you can take action if needed. Are you interested in a thorough and well-informed insight into any gender pay gaps that might exist within your organisation? Do you want to learn more about our Gender Pay Analysis method? We’d love to meet you and discuss the possibilities of our Equal Pay Checker for your organisation.