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.
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.