Pay Equity Analysis Part 3: Identifying Pay Gaps & Calculating the Equity Line

Pay equity analysis is one vital way of embedding equity with data. Not only is it the law in an increasing number of places, but it’s the right thing to do! There are numerous ways to conduct a pay equity analysis, some much better than others. In this series, we’re walking you through the intersectional gender and racial pay equity audit we recommend. In Part 1, we talked about what materials you’ll need to get ready and in Part 2 we discussed how to create job categories and visualize your compensation philosophy.

In Part I and Part II we collected our data, matched it to our compensation philosophy and assigned job categories to each employee. This gives us a chart that looks like this:

In order to look for pay gaps, we need another axis: pay. Here we look at the differences in Pay in relation to differences in Job Value (which is reflected in Job Category).