Measuring The Pay Gap

The information provided here is meant to give a general framework of questions and concepts for employers interested in conducting a pay audit, hiring a qualified statistician to conduct a pay audit for them, or hiring internal staff to do this work. The purpose of this tool is three-fold:

  • Provide a framework to assist employers and analysts to design and structure an analysis plan.
  • Identify some widely accepted analytical approaches to measure pay equity.
  • Identify questions employers can ask when hiring someone to do a pay equity analysis for them.

There is no universally applicable, one-size-fits-all method for measuring pay equity.  The tools provided here are not meant to be an exhaustive treatment of all methods.  Instead, they provide an overview of some commonly-used methods for analysis and introduce concepts and vocabulary that may be helpful in understanding the components of a pay equity analysis. Given the complexities of performing statistical analysis, it is a best practice to work with an expert in pay equity analysis.

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DISCLAIMER: The materials provided on this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain legal advice about any particular issue or problem. The materials do not represent the opinions or conclusions of individual members of the Task Force. The posting of these materials does not create requirements or mandates.