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COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED 1
MEMBERPOLL:PayEquityProcess
July2017
Published by: Diversity Best Practices • 2 Park Avenue, 9th Floor, New york NY 10016 • DiversityBestPractices.com Copyright © 2017 Diversity Best Practices. All rights Reserved.
INTRODUCTIONPayequityisanimportantandincreasinglyrelevanttopicbeingtackledintheworkforce.WomentodaymakeupnearlyhalfoftheU.S.laborforceandaremorecommonlyworkinginpositionsandfieldstraditionallyoccupiedbymen.However,theworkingwomanintheUnitedStatesstillearnsfarlessthantheworkingman.In2014,womenworkingfulltimeearnedonly79percentofwhatmenearned.ThepaygapisevengreaterforAfricanAmericanandLatinawomen,withAfricanAmericanwomenearning64centsandLatinawomenearning56centsforeverydollarearnedbyawhitenon-Hispanicman.ThegenderwagegapcontinuestobeaproblemthatshortchangesAmericanwomen,minoritiesandminoritywomen.Theprocessofauditing,revisingandcommunicatingwithinthelegalparametersrequiresconsideration,planningandexpertguidancetomitigateriskandincreaseretentionandemployerreputation.InarecentDiversityBestPracticesmemberpoll,memberswereaskedaseriesofquestionsabouttheirpayequityprocessasitrelatestotheircompany.Eighteenorganizationsparticipatedinthepoll.Theseorganizationscrossedmanysectorsofindustry,includingfinancialservices,pharmaceuticals,insurance,manufacturing,healthcare,utilityandlaw.Resultsofthepollaredetailedinthisreport.
COPYRIGHT©2017BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
3COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
OVERVIEWOFPOLLRESULTSRespondents
Industry NumberofEmployees AnnualRevenue($)
BioPharmaceuticals 10,000 19B
ConsumerProductsManufacturing 11,000 7.6B
ContractFurniture 6,000 2BFinancialServices 4,300 1.37BFinancialServices 4,500 1.37B
FinancialServices 6,000 14.4BFinancialServices 17,000 5.7B
FoodManufacturing 7,700 5BHealthcare 5,727 18MInsurance 3,726 3.5B
Insurance 5,550 12.2BInsurance 9,000 Insurance 33,000
Law 900 Manufacturing 25,000US,74,000Global 14.5B
Manufacturing 80,000 16BManufacturing-Food&Beverage 40,000 17B
Medicaldevice 26,000 9B
Staffing 4,000 19.6BUtility 24,000
4COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
HasyourcompanyconductedPayEquityStudies(orisitintheprocessofconductingone)thatarenotpurelyforAAPcompliance?
# Answer % Count
1 Yes 60.61% 20
2 No 39.39% 13
Total 100% 33AreyoucurrentlyorplantobecomeEDGEcertified(GlobalBusinessCertificationStandardforGenderEquality)?
5COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
# Answer % Count
1 Yes 9.09% 1
2 No 45.45% 5
3 NotsureornotfamiliarwithEDGE 45.45% 5
Total 100% 11
Underwhattypeofprivilegehaveyouconductedorplantoconductthestudy?
# Answer % Count
1 InternalCounsel 50.00% 7
2 ExternalCounsel 50.00% 7
Total 100% 14
6COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Howoftendoyouconductorplantoconductpayequityanalysisstudies?
# Answer % Count
1 Annually 50.00% 7
2 Bi-annually 28.57% 4
3 LessFrequently 21.43% 3
Total 100% 14
7COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Whatkindofresourcesareyouusingtoconductthestudyintermsofthequantitativecomponent?
# Answer % Count
1 External 20.00% 3
2 Internal 40.00% 6
3 Both 40.00% 6
Total 100% 15
8COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Ifyouareusinganexternalresource,whattypeofexpertisearetheybringingtothetable?Pleaseselectallthatapply?
# Answer % Count
1 Organizationalpsychologist 0.00% 0
2 Complianceanalysts/experts 54.55% 6
3 Other(pleasespecify) 45.45% 5
Total 100% 11Other(pleasespecify)
Complianceandstatisticianexpertise
Both
Statisticians
9COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Whattypeofemployeegroupingareyouusingforcomparisons?
# Answer % Count
1 JobTitles 15.38% 2
2 JobGroups 23.08% 3
3 PayGroupings 7.69% 1
4 SimilarlySituated 23.08% 3
5 Other(pleasespecify) 30.77% 4
Total 100% 13Other(pleasespecify)
Alloftheabove
Paygroupsandjobgroups
Jobcode,paystructure,country,timeatcompany,timeinjob
JobTitles,jobgroups,paygroupingsandmanagementlevel
10COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Whatmethodologiesareyouusingforthepayequityanalysis?Pleaseselectallthatapply.
# Answer % Count
1 OFFCPtypemethods 16.67% 2
2 Multivariateregressionanalysis(non-OFCCP) 75.00% 9
3 Other(pleasespecify) 8.33% 1
Total 100% 12Other(pleasespecify)
Basepayanalysesbyjob,grade,andgender
11COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
IfyouuseOFCCPmethods,whattestsdoyouconsider(2%,t-test,etc.)
# Answer % Count
1 100.00% 4
Total 100% 4Other(pleasespecify)
AverageandMeanpay
T-testand2%
12COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Howdoyoudeterminetheneedtoinvestigatefurthertodeterminedifferences?Pleaseselectallthatapply.
# Answer % Count
1 2standarddeviationsinaverage/mediancompensation 22.22% 2
2 %ofdifferenceinaveragecompensation 33.33% 3
3 Apayrangespread 0.00% 0
4 Other(pleasespecify) 44.44% 4
Total 100% 9Other(pleasespecify)
Setvariationfromexpectedresults
Havenotgottentothatstepyet
1.96standarddeviation
1.5standarddeviationinaverage/mediancompensation
13COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Areyouusingaspecialsoftwaretoconductthestudy?
# Answer % Count
1 Yes 0.00% 0
2 No 66.67% 8
3 Ifyes,whichvendor'ssoftwareareyouusing? 33.33% 4
Total 100% 12Ifyes,whichvendor'ssoftwareareyouusing?
Mercer
Notawareofthesoftwareexternalcounselisusing
PayStat
Outsolve
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Doyouinformemployeesthatyouareconductingorhaveconductedapayequitystudy?
# Answer % Count
1 Yes 27.27% 3
2 No 72.73% 8
Total 100% 11Ifyes,doyousharetheresultsofthestudyinaggregateorataveryhighlevelwithyouremployees?
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# Answer % Count
1 Yes 22.22% 2
2 No 77.78% 7
Total 100% 9Ifyoufindpaydisparities,howdoyoumakethepersonwhole?
# Answer % Count
1 Retroactively 0.00% 0
2 Adjustgoingforward 100.00% 10
Total 100% 10
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Howdoyougoaboutremedyingpaydisparities?
# Answer % Count
1 Allatonce 38.46% 5
2 Over2-3years 53.85% 7
3 Morethan3years 7.69% 1
Total 100% 13
17COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Howdoyouprioritizetheremedy?
# Answer % Count
1 Targetspecificemployees/roles 18.18% 2
2 Employeeswiththelargestpaygaps 18.18% 2
3 Allemployees 27.27% 3
4 Other(pleasespecify) 36.36% 4
Total 100% 11Other(pleasespecify)
LookingatrolesaswellaspaygapRemediesareevaluatedforallEEs.Variouscriteriausedforcompetitivepositioningbasedongradestructure.HavenotgottenresultssodonotyetknowtheimpactLookingatlargestdisparitiestobefixedover2adjustmentsandsmallerdisparitiesin1adjustment.
18COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Atwhattimeoftheyeardidyouordoyouplantomakeadjustments?
# Answer % Count
1 Atreview/merit/bonustime 61.54% 8
2 MidYear 23.08% 3
3 Offcycle 15.38% 2
Total 100% 13Doyouinformtheimpactedemployeesthattheywouldreceiveadjustments?
19COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
# Answer % Count
1 Yes 76.92% 10
2 No 23.08% 3
Total 100% 13Ifyes,whatexplanationdoyouprovidetotheimpactedemployeeswhenmakingadjustmentstotheirpay?
# Answer % Count
1 Thatyouwanttobringthemuptothemarket 44.44% 4
2 Thathe/shewouldcontinuetogetadditionaladjustmentsoverthenextfewyears 0.00% 0
3 Otherexplanations(pleasespecify) 55.56% 5
Total 100% 9Otherexplanations(pleasespecify)
CombinationofmarketandinternalfactorsChangesaretypicallyaddressedasequityadjustmentsbasedonpositionevaluation,performanceand/ormarketcompetitiveness.Notyetsurewhatthecommunicationplanwillbe
Marketandinternalequityreview
Deviationfound,stepsbeingtaken
20COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Ifyouhaveusedanexternalresourcetoconductthepayequitystudy,whathasbeenthecosttoyourcompany?Pleaseprovidethecost,asapplicable.
Costfortheentirecompanyasonestandardentity($)
Costperdivision/businessunit Costbylocation
25,000
25,000
Studyconductedinternally Studyconductedinternally Studyconductedinternally
75,000
10,000-15,000
100,000
5,000
21COPYRIGHT©2016BYDIVERSITYBESTPRACTICES.ALLRIGHTSRESERVED
Didyouuseorplantouseexternalconsultationservicestohelpwiththeremedyprocess?
# Answer % Count
1 Yes 25.00% 3
2 No 75.00% 9
Total 100% 12Ifyes,whathasbeenoristheexpectedcostofconsultationsservices
IncludedinabovedataIncludedintheabove10,000-15,000wewouldhavethemrerunthenumberswiththeproposedadjustmenttomakesureittakescareofthesituation
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