Pay Gap Analysis, Step by Step

Your payroll can tell you exactly what you pay, but it can't tell you whether you can explain it. And explaining it is now the job: to a works council, to a regulator, and to the employee who knocks on your door to ask why they earn what they earn.

This guide takes one fictional company, one worker category and one employee, and introduces every concept behind a gender pay gap analysis in the order you actually need them. No statistics background required.

What you will learn

• The difference between raw and adjusted pay gaps, and why they tell different stories
• How multi-linear regression actually works, without the statistical jargon
• How to tell a gap explained by profile apart from one that's genuinely unexplained
• The three uses for these numbers: compliance, company-wide steering, individual cases
• How to read and respond to an employee's right-to-information reques