Better questions.
More useful answers.

Explainer

What a headline pay gap can tell you

A workforce-wide comparison can reveal a difference in average or median pay between groups. It does not, by itself, explain why that difference exists.

Start with the composition of your workforce

Different groups may be represented differently across roles, seniority levels, locations, or working patterns. A headline gap reflects these differences as well as differences within comparable jobs. Both can merit attention, but they raise different questions.

Look at comparable employees

An adjusted analysis examines pay while accounting for selected factors. The usefulness of that analysis depends on the quality of the data, the comparison groups, and whether those factors are relevant and defensible.

Question the explanation, too

An apparently explanatory factor is not automatically fair. Job levels, performance ratings, and progression decisions may themselves warrant scrutiny. A smaller adjusted gap should not end the investigation into the processes behind pay.

Preparation

Is your data audit-ready?

A reliable audit starts before the statistical analysis. Use these five questions to prepare your team.

1. Have you defined compensation consistently?

   Distinguish base pay, bonuses, allowances, and total compensation. Agree the reporting period and treatment of one-off payments.

2. Are working hours comparable?

   Document full-time equivalents, part-time arrangements, and changes during the period. Be clear about which pay measures will be normalised.

3. Do roles and levels mean the same thing?

   Review job titles, grade structures, and business-unit conventions before combining employee populations.

4. Can you explain missing or unusual values?

   Check duplicate records, inconsistent currencies, missing fields, and outliers. Keep a record of corrections and exclusions.

5. Have you agreed how data will be handled?

   Confirm the purpose, authorised access, transfer method, and retention arrangements before sharing employee-level information.