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Pay Philosophy

Adjusted pay gap

Nina Wettergren avatar
Written by Nina Wettergren
Updated over a week ago

โ€‹In this guide, we will show you where to set the salary factors that will impact the adjusted pay gap. Your pay philosophy should reflect the factors you believe should drive salaries within your organization.

To read more about the adjusted pay gap and how it is calculated, click here below.

To access your pay philosophy, you need to enter your active equal pay, select the "Prepare" tab, and then choose "pay Philosophy."

You can also directly choose to modify factors on the overview tab.

Here, you will have all the pay factors that you can choose to affect employees salaries.

We have three recommended preset factors, which are level, performance, and age. Of course, it is possible to deselect any of them if they do not reflect your pay philosophy.

The remaining pay factors include company tenure, job tenure, manager code, and position level.

If the value is the same for all employees or empty, an information box will be visible, and you can also update the data directly here.

To update a pay factor, click on "Update," download the template, fill in the data, save the file in CSV (UTF-8) format, and then import the file.

To the right, you will see a bar graph displaying your unadjusted pay gap, adjusted pay gap, and pay factors.

At the top, you have your unadjusted pay gap, which represents the pay difference before you've selected factors. The unadjusted pay gap only considers gender and ignores factors that could explain the salary differences.

The next part of the bar graph is the adjusted pay gap. What cannot be explained by your pay factors constitutes your adjusted pay gap, and reducing this gap is what you will be working on.

At the bottom of the bar graph, you have the portion of your unadjusted pay gap that has an actual explanation based on the pay factors you've chosen in your pay philosophy.

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