Without an equitable pay strategy in place, it’s common for companies to find that they are not paying women and men evenly. With the newly improved Pay Gap Insight, you can identify and close pay gaps before they take a toll on your employee wellbeing and engagement.
Even after accounting for a variety of factors that could explain these differences, the gaps still tend to exist. Enter the new and improved Orgnostic’s Pay Gap Insight — your go-to tool for identifying problem areas and addressing them before they start to affect your employee wellbeing and attrition.
Based on customer feedback, we have added functionality to our original Insight. With the new Pay Gap Insight you get a current and historic view into the differences at your company, which you can use to determine how to best address these gaps in your organization. You can also look at your current data, starting salaries, and salary increases separately.
Keep reading to find out what features you will be able to access through the Pay Gap Insight and how this can help you drive equity in your organization.
What is the Pay Gap Insight?
The Pay Gap Insight is a new feature within the Orgnostic people analytics platform. You can find it in our Rewards chapter, and it warns you about pay disparities between men and women in your company at various career stages, in various locations, and in different organizational structures.
Unlike other insights which are timely reports which only come up if there are potential issues, the Pay Gap Insight shows you the comparative data even if we are not detecting any gender differences in pay at your company.
With the Pay Gap Insight, you will get information on:
- How starting salaries or salary increases differ between men and women
- What you can do to address these differences
Let’s now break into specific views you will get when using the Pay Gap Insight.
How does the Gender Pay Gap Insight work?
The Pay Gap Insight should appear in your Rewards chapter, except if you don’t have enough data to conduct statistical testing for each data split.
Where that is the case, we will show you descriptive data (e.g. raw salary averages for men and women), and highlight that we could not determine whether any differences are statistically different.
But where you have enough data, we’ll run a model comparing pay information for men and women taking into account a number of variables that could explain some of the observed differences (e.g. tenure, age, number of leaves). We’ll then highlight teams or locations in which the difference remains significant even after accounting for the variables above. We will also look at your compensation equity across all teams for leadership roles.
These analyses will give you insight into the current state of affairs at your company, and in particular highlight any areas of concern — whether it’s particular teams or departments that you have a discrepancy in, or if women in leadership are paid less than men in equivalent positions.
What you can do to improve the Gender Pay Gap in your organization
There are a number of ways to address this issue if it is present at your company. Your strategy should take into account what your data reveals to be the biggest issue.
For instance, you might:
- Make your salary ranges transparent. Women are known to negotiate their salaries less often, so you could encourage negotiations and equitable pay by providing transparency in salary ranges when jobs are posted.
- Reduce opportunity for bias. Equitable promotions can be achieved by removing uncertainty from the process – from transparently outlining criteria for promotion, to providing a formula for calculation of performance-based bonuses.
- Change your hiring process. Ensuring the right candidates are hired at the right levels can be achieved through structuring the interview process to include technical interviews that feature the same questions, as well as HR interviews. Further, you could skip asking for an employee’s previous salary and instead offer them a salary commensurate with their skillset level.
Which other Insights can I find in Orgnostic?
Having a quick overview of your workforce stats helps make good decisions — you can easily grasp headcount costs, track turnover over time, follow time in recruiting stages, or have the cost of compensation worked out for you.
But often, you’ll want to do more in-depth, timely, specific analysis. Enter Insights — reports we generate only if we notice that there is a trend that needs your attention at a particular moment.
Besides Pay Gap Insight, Orgnostic users also have access to:
- Hiring Bottleneck Insight — get prompted when there are applicants who have spent more time in a particular stage of your hiring pipeline compared to the historical trends for your organization.
- Candidate Drop-Off Insight — get a timely look into the bottlenecks in your hiring process, which you can then remedy and make sure the right candidate stays in the pipeline, and – hopefully – joins the team.
- Data Health Insights – have an overview of all the fields in your HR tools (HRIS and ATS) that have missing data or hold incorrect inputs.
And more!
What’s next for Insights?
The Pay Gap Insight offers a novel way to look at the equity of your pay structures and make data-driven decisions about increasing equity in your organization. This will help support your employee engagement and retention, particularly of women.
We are constantly on the lookout for new ways to extract valuable insights from your data and keeping up with novel approaches in statistical testing of hypotheses of interest.
More insights are coming up — stay tuned to learn more about which factors influence an employees’ risk of leaving the company or what most impacts burnout and employees’ performance.