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Pay equity analysis

Choosing pay factors

Pick the factors that explain pay differences in your adjusted pay gap, and document why each one is justified.

Written By Karl

Last updated About 9 hours ago

Pay factors are the reasons pay can differ that you include in the analysis, such as job grade, experience or location. They should be objective and gender-neutral. Evenpay uses your active pay factors to calculate the adjusted pay gap. A difference that no active factor explains stays in the unexplained gap.

Who can do this: Administrators

Where: Settings → Pay equity & transparency → Pay factors (the page is titled Pay Philosophy)

Create your pay philosophy

  1. Select Create Pay Philosophy.

  2. Under Basic Information, name it and describe it.

  3. Under Compensation Factors, turn on the factors that influence pay in your organisation and that you can justify. Add a short rationale for each one; it can be used in reports.

  4. Under Custom Pay Factors, add any custom fields you have marked as pay factors.

  5. Add Compliance Notes if needed, save and activate.

Built-in factors

Experience, Tenure, Job Grade, Skills, Skill Fit, Education, Certifications, Certification Fit, Worksite, Working Hours, Organization Unit, Job Family, Performance, Location, Age and Business entity.

  • Experience can come from imported experience years, or be estimated as age − 18.

  • Location can be measured by country, country and city, or city.

  • Business entity appears once you have a second entity, and is off by default.

Good to know

  • You can use at most 12 factors, and at least one must be on.

  • A factor needs data for at least 20% of employees and at least 5% variation. Otherwise it is left out of the calculation until your data improves.

  • Only one pay philosophy is active at a time, and the active one can't be deleted.

  • To use a custom field as a factor, mark it as a pay factor in Settings → People & data → Custom fields.

  • Choose factors you can justify. Including a factor tells Evenpay to treat the pay differences it explains as explained. Whether a factor is an objective, gender-neutral reason for a pay difference is your organisation's judgement, so document why you use each one.

  • Age is a protected characteristic under EU equal treatment law. If you use age, or experience estimated from age, as a pay factor, document why it is objectively justified. Use real experience data where you have it.

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