How to Use Data to Analyze Pay Equity

12/9/20 3:26 PM

In this two part pay equity blog series, Summit Consulting Senior Manager Corey West (who leads Summit's internal pay equity analyses) and Salt Hill's Alan Salzberg discuss the must haves for conducting comprehensive and reliable pay equity studies. The first post in the series was about three must-have elements for comprehensive, cost-effective pay equity assessments:. This second post is a brief case study of how to use data to analyze pay equity.

Pay is a function of several employee characteristics. How can we know if pay inequities are attributable to race, gender, or age? Here, Summit explains how to answer this question using regression modeling, predictive analytics, and statistical matching. As a Senior Manager with extensive experience in pay-equity analytics and a founding member of Summit’s Diversity Equity & Inclusion group, I lead the annual review of Summit’s internal salaries. Below, we take a closer look at each step of a pay-equity review.

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Topics: 2020 Pay Equity

Three must-haves in pay equity analyses

11/5/20 11:18 AM

In this two part pay equity blog series Summit Consulting Senior Manager Corey West (who leads Summit's internal pay equity analyses) and Salt Hill's Alan Salzberg discuss the must haves for conducting a comprehensive and reliable pay equity study. The second release in the series will be a brief case study highlighting the implementation of the must haves.

Pay equity is good business because companies with pay equity protocols attract and retain top talent. To be successful in this area, companies should proactively assess their performance on a regularly basis using quantitative and qualitative data.

In this blog post, we describe three must-haves for comprehensive, cost-effective pay equity assessments: descriptive employee data, an appropriate statistical model, and subgroup analyses.

Companies that apply these must-have elements will have robust statistical evidence of pay equity (or inequity). If the organization detects pays inequities, they can readily identify and remedy the disparity in a focused and efficient manner (i.e., without a complete salary restructuring).

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Topics: 2020 Pay Equity

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Summit is a specialized analytics advisory firm that guides clients as they decode their most complex analytical challenges. Our blog highlights the strategies and techniques we use, as well as relevant topics in current events.

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