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Pay equity analysis

Explaining gaps with pay rationale tags

Document the objective reasons behind pay differences, add evidence and decide what to do with the remaining gap.

Written By Karl

Last updated About 9 hours ago

Pay rationale tags record why an employee is paid more or less than their peers, for example Senior Experience or Market Premium. Tagged, evidenced reasons explain part of a group's gap, and what's left is the gap you still need to investigate, and act on where it isn't objectively justified.

Who can do this: Administrators

Where: tags are applied in an alert, a work of equal value group or an employee's Pay Rationale tab. Tags are managed in Settings → Pay equity & transparency → Pay rationale tags.

Add a tag to an employee

  1. Open the alert or group and find the employee.

  2. Pick a tag. Evenpay may offer Suggestions you can accept.

  3. Choose an Impact Tier: Minor, Moderate or Strong.

  4. Add a note if needed, and save.

  5. Once the tag is live, add Evidence: upload files (up to 10 MB each) or write notes.

How strong is the explanation?

Each employee's status is Well Explained, Partially Explained or Needs Attention. The bigger an employee's deviation from their peers, the more explanation it needs:

Deviation

Points needed

up to 5%

2

up to 10%

4

up to 20%

6

over 20%

8

Only current and re-verified tags count. Draft, expired or tags needing review explain nothing.

The remaining gap

Use Explain Residual to record a decision on the part that is still unexplained:

  • Structurally Justified: a note is required. Use it only with documented evidence.

  • Compensation Adjustment Planned: set a target date for the adjustment.

  • Acknowledged — Under Monitoring.

Managing tags

  • System Tags cover experience, performance, qualifications, responsibilities, market, working conditions and contractual reasons. Turn individual ones on or off.

  • Custom Tags have a name, category, description and direction (Higher Pay Factor or Lower Pay Factor).

  • Rationale Explanation Cap limits how many percentage points tags can explain (1–100, or empty for no cap).

Good to know

  • Inside a draft scenario, live tags are read-only and new tags are staged as previews until you activate the scenario.

  • Tags must reflect objective, gender-neutral reasons. Keep evidence for anything you may need to show an auditor or employee representative.

  • A rationale tag records your reason; it doesn't make a difference lawful on its own. Reasons should be objective, gender-neutral and supported by evidence. Market-based reasons (such as Market Premium) are examined closely, so keep the evidence.

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