Frequently asked questions
A collection of the questions we are asked the most frequently, with simple, straightforward answers.
The most common reasons for and ways to resolve login issues include:
- Your username is not your email address. Instead usually it's your first name; make sure to check your initial Welcome email to find your username.
- Your password is incorrect or has expired. Try resetting your password. In the login screen below the login details, click Forgotten password, input your email address, then and follow the email process to create a new password.
- Your account's (super) admin may have turned on SSO for your account, which means that your usual username and password login no longer work. Check with the PayAnalytics account's (super) admin to verify if this is the case and how to login from here.
Head over to Settings > User Management > Add User to invite your team members to join your PayAnalytics account. Here, you'll need to add some basic user details and assign them a user role.
Your PayAnalytics account is managed via role-based access. By default, your very first user is assigned the user role "super admin" which grants them access to all features and all data sets. You can create additional role-based access by heading to Navigation > User Roles > Add Role and completing the Detailed Access settings. Next, you can assign your newly created user role to users from Navigation > User > Add User and completing the user details with the assigned user role.<
Head over to Settings > User Management > User Roles to view existing user roles and permissions and to add new custom user roles and related permissions. For each role, you will see a long form of permissions and accesses which can be enabled or disabled depending on your needs. The two most common types of permissions are either feature-based or access-based:
- An example of feature-based permission might be providing your talent acquisition team member with access to the Compensation Assistant only, but restricting access to running pay equity analyses.
- An example of access-based permission might be providing your UK compensation team to UK data sets and analyses only, but restricting access to other locations data and analyses.
You can either create custom access permissions for a specific user, or you can create a user profile with specific access permissions and assign that role to the user. Creating a new user role is a more scalable way of replicating access across multiple users. Both individual access and user role access work in similar ways. Head over to Settings > User Management > User Roles to view existing user roles and permissions and to add new custom user roles and related permissions. Assuming none of the existing user roles cover your access needs, click "Add role", give the role a descriptive name, for example "Recruitment Comp Assistant Only", and then set the permissions in the form sections, specifically in the section "System feature availability". In this example, you would enable the "Compensation Assistant" feature and disable all other features including "Pay Equity Analysis" and "Job Evaluation". Save the user role and assign it to the relevant user(s).
You can either create custom access permission for a specific user, or you can create a user profile with specific access permissions and assign that role to the user. Creating a new user role is a more scalable way of replicating access across multiple users. Both individual access and user role access work in similar ways. Head over to Settings > User Management > User Roles to view existing user roles and permissions and to add new custom user roles and related permissions. Assuming none of the existing user roles cover your access needs, click "Add role", give the role a descriptive name, for example "Pay Equity UK Only", and then set the permissions in the form sections, with specific focus on the "Per-label access controls" section. If you have not done this already, ensure that your data sets and related analyses contain labels based on how you wish to restrict access, for example by country, function or business unit. In this specific example, you would label the relevant data sets as "UK" and set user permission for this role to data set "UK" only. Save the user role and assign it to the relevant user(s).
You can either create custom access permission for a specific user, or you can create a user profile with specific access permissions, and assign that role to the user. Creating a new user role is a more scalable way of replicating access across multiple users. Both individual access and user role access work in similar ways. Head over to Settings > User Management > User Roles to view existing user roles and permissions and to add new custom user roles and related permissions. Assuming none of the existing user roles cover your access needs, click "Add role", give the role a descriptive name, for example "Pay Equity UK Only" and set the permissions in the form sections, with specific focus on the "Dataset and analysis labels" section. If you have not done this already, ensure that your data sets and related analyses are labelled based on how you wish to restrict access, for example by country, function or business unit. In this specific example, you would label the relevant data sets as "UK" and set user permission for this role to dataset and analysis "UK" only. Save the user role and assign it to the relevant user(s).
Please reach out to your PayAnalytics admin user. They will be able to deactivate your two-factor authentication from the User Management section within PayAnalytics. Once you have logged in without 2FA, you will be able to reactivate it again within your account's system settings.
You cannot configure data deletion rules from within the platform, however we can set them on our side as a policy across your instance and account. We can set a rule stating that all datasets will be deleted once they reach [number] days/years of age. Note that deletion occurs at dataset-level and when a dataset is deleted, all related analyses and reports are also deleted. To request such policy, please reach out to our support team.
We currently do not enable bulk import of users.
- You have two options to add users:
- Navigate to Admin and click "Users", click the "Add User" button and add user details and user role or set individual permissions.
- Through enabling SSO, which depending on your SSO configurations can provide permitted users access to PayAnalytics and can even automatically assign user roles (reach out to support to learn more).
Setting up SSO on your instance is a process that needs to be fully completed to have all users successfully log in. Please check out our article Setting up the SSO for detailed instructions to ensure all users can access the system.
Deactivated users will be shown in the 'Inactive' user list. To reactivate them, click 'Edit' and change their status to "Active".
On the overview page, you have the option to customize a page preset allowing you define the graph, column variables, data order, filters, etc. that you want to see when you open your datasets in the system.
The unadjusted pay gap is the average difference in pay between a demographic group and the reference demographic group. For example, in the case of gender, it is the percentage difference of average pay for women compared to the average pay for men. Here we assume "men" are the reference group. The average pay data and differences can be found in an Analysis, under the "Employee Overview" section, in the "Summary statistics" data table.
If the graph/table is exportable, you will find an excel icon or image icon in the right top or bottom of the graph or field. Click on that icon to export the data or graph in your required format.
Dots represent distribution points in your employee data by specific demographics groups (Y-axis) and the value of that distribution point on the (X-axis), the default compensation variables. Depending on the colour of the dot, it might represent a 25th, 50th (median) or 75th percentile point of the data, or even the average value across all data points. The dots can be toggled in and out of the graph by clicking on the values below the graph.
Each dot represents an individual employees within your data set. The various colors of the dots each represent a different value from your demographic group(s). The distribution of dots in your employee data for each specific demographics groups provides can give you an initial sense of extreme cases, as well as potential differences in pay across demographics. When you click an individual dot in the graph, that employee data row will be pegged and visible at the top of your Employee List at the bottom of the screen. Check out this article to discover more ways of investigating your employee data.
Yes you can. In the top corner of the employee overview graph you can select "Group compensation distribution", and you will see the distribution on an aggregated level. You can also specify in the settings wheel of the graph to not "Separate groups by demographic variable", which will also aggregate the demographic variable.
By clicking "Table columns", you can hide/show any of the columns you have in your data file, and the analysis calculations after having run an analysis.
You might have hidden columns from view in the employee list, or you have been assigned limited access to the data and therefore cannot see everything in the employee list.
When reviewing your employee data, investigating outliers, or evaluating raise suggestions, you may come across employees with exceptional situations. The comment section is a great way of capturing the specifics for future reference. Examples might be where employees have recently had exceptional leave, transferred within the business, or are part of specific employee groups that impact compensation decisions. The comment field within the Employee List (which can be found in the Employee Overview navigation menu) allows users to add a comment, decide whether it is applicable only to this dataset, or should be applied to all datasets (where the same employee can be found, based on the employee ID) and save the comment. A comment can then be retrieved at any time, edited or resolved (if the situation changes).
No, the Employee Overview in Summary Statistics shows the average pay difference across demographic groups (which is your unadjusted pay gap), even before running a pay equity analysis. To measure your adjusted pay gap, you do always have to run a pay equity analysis as it needs to incorporate your compensation model.
Categorical variables have values that are discrete groups; examples include job family (sales, operations, IT), country and demographic. Numerical variables have values that are numbers on a continuous scale, suc as years of experience or number of direct reports (1,2,5,10). Although some variables might be numbers, that does not automatically make them numerical variables. Consider a performance rating system based on a scale of 1 to 4. The scale is not continuous and there is no direct relative measure between the values. For example, someone who scores a 4 is not necessarily performing twice as well in their job as someone who scores 2.
When importing a data file, the system automatically reads the columns either as "Numeric" or "Text" columns, depending on the column's content. In the Summary & access section, within "Dataset preview" on the dataset configuration page, you get an overview of how the system reads your columns. If a numerical columns has been read as a "Text" column, the most likely reason is that a cell as a missing value (blank) and the system reads blank cells as "text" columns, and can therefore not be included in the compensation model as a numerical variable.
When a variable is found to have a low significance (corresponding with a high p-value), it does not meaningfully contribute to the compensation model. When backward elimination is turned on, variables with low significance are automatically removed from the model and no results are shown for those variables.
For an overview of variables to include in your compensation model in a pay equity analysis click here.
You can control the reference group against which the system measures the pay gaps. If left to the default value (Automatically select), the reference group will be the group with the average highest compensation. For example, if you are looking at demographic variable "Gender" and select "Female employees" as the reference group, that means that any pay gaps from "Male employees" or "Non binary employees" will be measured against female employees as the baseline. If your pay gap fluctuates around 0% over time, where the genders are alternatively lower paid gender, it might make sense to manually select the reference group for consistency in the results over time.
That depends on what you're trying to achieve. Local legislations have varying requirements and internal reporting may in turn require a different compensation. We recommend consulting with your legal compliance representative and/or your pay equity leader to understand the scope of compensation to include here. For example, you may want to only focus on base salary (for internal reporting purpose). However if your analysis is for the EU pay transparency directive, you will need to include Total compensation (across salary, variable, allowances, etc.). If you are running your first analysis, we like to recommend to start with what compensation component you have.
Running a subgroup analysis involves splitting the data into subgroups based on a selected column, such as department or country, and then running a separate compensation analysis on each subgroup. If pay structures and compensation models vary significantly across groups, you might consider running a subgroup analysis. If it's just pay levels that vary, but the factors are quite similar, you don't need to run subgroup analysis.
You have the option to run an analysis without receiving raise suggestions on how to reach your pay gap target. That way, you can first check the quality your compensation model (R-squared) and understand the extent of your Adjusted Pay Gap, before heading back at a later point to enable raise suggestions, run a remediation model and evaluate your options to achieve your pay equity goals.
The most common reason for a slow (or failing) pay equity analysis include:
- A large number of distinct data field values within a column. Where possible, try grouping certain values together into larger groups. For example, within education, "Doctorate", "PhD" and "Post-doc" could be grouped.
- Backwards elimination, which removes high p-value variables from models one-by-one, can make the analysis very slow. Remove backward elimination by unchecking the "Remove insignificant variables" box.
- The raise suggestion model can also slow the process. Consider only running the compensation model (pay gap analysis) without immediately running the raise suggestion model, to start.
A rule of thumb is that every variable should have at least 5 to 7 employees in each (sub-)group. In case you have fewer employees in a group, we suggest that you combine some of the variables (for example, if you have very detailed job titles, put all types of directors into one “Director” variable, or potentially two levels like "regional director" and "executive director"). The only exception to this rule is if there are truly unique employees, like the CEO, who are alone in their role.
In an ideal world, all pay gaps would be closed, or reduced equally. However, in practice not all pay gaps are equal; some may be much larger than others, and with limited resources (budget and time) available, you may choose to reduce pay gaps at different rates. For example, your "Asian-female" pay gap and your "Black-male" pay gaps may respectively be 8% and 13% compared to the reference group. Instead of reducing both to 5% pay equity target, you might realistically need to reduce each by 3 percentage points, to respectively 5% and 10% in year 1. In consecutive years, you could then continue to further reduce higher pay gaps.
No, numerical data can - and sometimes should - be used as a categorical variable. An example where numbers should be treated as categories would be the variable "experience" which can have the values 1, 2, and 3, where going from 2 to 3 has a much bigger impact than going from 1 to 2. Or numerical performance ratings, where the gap between a rating 2 and 3 is somewhat arbitrary and certainly not linear to going from rating 3 to 4.
Generally speaking, two approaches can be used to account for differing pay across locations (or countries). In case pay is structured significantly differently across countries, you may consider running a sub-group analysis across each country or group of countries to account for different compensation models. If the pay is structured similarly and mainly pay levels vary, you may consider including country as a categorical variable in your pay equity analysis, which will include the impact/explainability of the location on individual pay.
When users run a gender pay gap analysis, the system performs two separate regression analyses. The first analysis includes the ""gender"" variable to measure the gender pay gap, which is quantified using the regression coefficient of gender. This coefficient captures the impact of gender (male/female/non-binary/not reported) on salary. The regression model incorporates all compensation drivers along with demographic variables, producing the Compensation Model Results section within the Pay Equity Analysis. Here, the contribution of each variable, including demographics, is summarized to assess the explanatory power of the model (R-squared). Ideally, demographic variables should not account for any pay variability (0% R²), and the measured pay gap should be minimal.
The second analysis is a gender-neutral analysis, meaning the gender variable is excluded. This model is used to calculate employees' predicted salaries, outlier percentages, estimate adjusted pay gaps within groups that are based on outlier percentages, and generate salary recommendations in the Compensation Assistant.
The purpose of running both models is to ensure that gender does not influence or predict salaries while also allowing the regression coefficient to quantify the adjusted pay gap and its significance. This approach helps measure the monetary impact of gender on salary and assess its statistical significance.
A (demographic) reference group is the group that the other gender’s (target group) pay gap is measured against. For example if men are a reference group, the women are compared to men. In PayAnalytics there is an automatic selection process for reference group involving two steps:
- Step 1: Limit the number of eligible demographic groups using the following heuristic:
- The largest demographic group is always eligible.
Other demographic groups are eligible if they fulfill the following criteria:
- The headcount is at least 25% of the headcount of the largest demographic group.
- The headcount is at least 10% of the entire population.
- The headcount is at least a minimum group size threshold (default 7 but can be controlled in System Parameters).
- Step 2: Select a reference group from the eligible groups:
- When set to Automatically select, the system selects as a reference group, the group that has the highest adjusted pay.
- When manually selected by the user, the system uses that demographic group instead
Note on close by groups: When the analysis raise configuration is set to close the pay gaps by groups, then the reference group selection process happens on a per-group basis and not for the whole population at once.
For the tool to suggest raises to a group it must be (a target group) not a reference group. PayAnalytics users can manually select eligible reference groups, overriding the automatic logic of selecting the highest adjusted paid group within the eligibility criteria. This is done in the "Run Analysis" form by checking the "Manually select a reference demographic group the pay gap is measured against" checkbox. This will lead to the system not suggest raises for the selected reference group, and the pay gap will be measured compared to the selected reference group.
When the reference gender is automatically selected, the system follows a two-step process: first, it identifies the eligible groups, and then it selects the reference group from among those eligible. Step 1: Limit the number of eligible demographic groups using the following heuristic:
- The largest demographic group is always eligible.
- Other demographic groups are eligible if they fulfill the following criteria
- The headcount is at least 25% of the headcount of the largest demographic group.
- The headcount is at least 10% of the entire population.
- The headcount is at least a minimum group size threshold (default 7 but can be controlled in System Parameters).
Step 2: Select a reference group from the eligible groups
- When set to Automatically select, the system selects as a reference group, the group that has the highest adjusted pay.
- When manually selected by the user, the system uses that demographic group instead.
When a reference gender is manually selected, the pay gap is calculated by comparing how much the other groups earn relative to the selected reference group. In this case, the system disregards the usual criteria it uses to determine which demographic groups are eligible to serve as a reference. Once a reference group is manually chosen, all pay gaps are displayed in relation to the selected gender.
R² value indicates the explanatory power (0 to 100%, where 100% is best) of your compensation model. It's a technical way of expressing how much variation in pay your model is able to explain, or the quality of your model. As a general guideline, one should aim for a value of 85% or greater.
A low R-squared value means the explanatory power of your compensation model is low when predicting pay variations. To improve the explanatory value of your model, reconsider the explanatory factors (variables) you're using. Add new variables and remove other variables that are not increasing the R-squared value. Click here for a list of variables commonly included in compensation models. This may mean you need to collect and upload new data fields (columns) in your dataset to improve your compensation model.
Based on calculations from the regression analysis, a predicted compensation is calculated for each employee, based on the compensation model and the individual employee characteristics. When this predicted compensation is compared to the actual compensation of the employee, you the get outlier percentage. Based on the outlier percentage, you get information whether the employee is overpaid or underpaid, according to the model. You can view the outliers in the "Outlier mode". By analyzing the outliers, you may detect any objective factors that are missing in the compensational model.
The P-value indicates the significance of a variable (0 to 1, where 0 is the best). It's a technical way of expressing how meaningful each variable is at explaining pay variations. It represents the probability of pay variation being due to pure chance versus being explained by the variable. As a general guideline one should aim for a value of 0.001 or lower.
When configuring your analysis, you may have turned on "backwards elimination" which automatically removes insignificant (high p-value) variables from models. This is a best practice we would recommend to make your compensation model more robust, since having many explanatory variables will by definition increase the explanatory value (R-squared), but having insignificant variables reduces the strength of your model. You can turn backward elimination off at anytime by unchecking the "Remove insignificant variables" box from your analysis configurations. We do however recommend you check the significance of your variables in he compensation model results and manually remove any variables that are insignificant.
The pay gap doesn't actually change, only the percentage and direction change. Let's take the simple case of just male and female demographics. If the average pay for men is $120 and for women is $100 and we automatically set men to be the reference group, our pay gap would be 20% ((120-100)/100). When we change the reference group to women, the pay gap is -17% (100-120)/120. The actual gap is still $20, but expressed as a percentage of a different reference group, the direction (+)/(-) changes and the number changes slightly.
The adjusted pay gap (sometimes referred to as the "equal pay gap") measures the average percent difference in pay after accounting for all quantifiable factors that influence pay decisions and drive pay. The approach to measuring the adjusted pay gap is called regression analysis. Importantly, regression models can account for multiple explanatory factors simultaneously (in contrast to slicing the data by one pay factor at a time). When using multiple factors in a regression model, it's important to note that the model measures the contribution of each factor to pay after accounting for all other factors included in the model.
The adjusted pay gap is then calculated by adding gender to a regression model; the regression coefficient for gender is the salary impact of being, for instance a woman, after accounting for all other pay drivers.
More specifically and using gender as an example, to calculate the adjusted pay gap, gender is included as a factor in the regression model. The coefficient for gender tells us how much more or less women are paid than men, after accounting for all the other factors in the model. This is a more accurate approach than comparing differences from predicted compensation (for example, calculating an adjusted gender pay gap using differences from predicted compensation is influenced by groups that only include men, while the regression compares each women to a statistically similar employee of the opposite gender). It is worth noting however, that when we estimate the adjusted pay gaps within smaller groups (for example, in the compensation model result tabs), then we do approximate the impact within small groups by comparing differences from predicted pay (using a gender neutral model).
Your unadjusted pay gap is measured as the simple difference (as a percentage) between the average pay of one demographic group (such as women) compared to the average pay of a reference, usually higher paid, demographic group (men for example), without accounting for the make up of the workforce and associated factors that may explain pay differences. Your adjusted pay gap expresses the difference in average pay between one demographic group compared to the reference demographic group, after accounting for factors that explain pay differences, based on your compensation model (regression analysis).
An overfitted model is when the compensation model fits too closely the employee compensation data used to develop it. This is considered a problem because the model may not be a good predictor of compensation outside of the initial employee data set (future employee compensation). This generally occurs when the employee data set is too small in comparison to the complexity (number of variables) achieving a high explanatory value of your compensation model (ideally an R-squared value above 85%) while using the minimum number of explanatory variables.
The adjusted pay gap is measured within PayAnalytics using a regression analysis to approximate the compensation model from your organizations pay data. Within the regression analysis, in addition to include explanatory variables, the demographic variable (such as gender) is included. The demographic variable's regression coefficient, which estimates the change in compensation as a result of changing gender (from male to female, for instance) is used as a measure of the adjusted pay gap. While the estimated pay gap within a group (for example, a specific job function or country) measures the difference between the average Outlier percentage of one demographic variable (such as women) compared to the average Outlier percentage of the reference - by default higher paid - demographic variable (such as men). The outlier percentage for an individual employee is the percentage difference between their actual pay and their predicted pay, where predicted pay is calculated from the gender neutral compensation model (so the regression model results excluding the demographic variable).
Correct. If, for example, the effect of going from 1 to 2 years of tenure is very different from the impact of going from 10 to 11 years of tenure, then it can be a good idea to group values into ranges and use them as categorical variables.
To calculate the outlier's standard deviation, we take the outlier percentages (%) of the whole company, take the standard deviation of those percentages, and divide each employee's outlier %/standard deviation. So, if the standard deviation of outlier % across the whole company is 5%, then -5% is 1 SD below, and 10% is 2 SD above.
The Unadjusted to Adjusted Pay Graph represents the impact that adding each variable (compensation driver) has on your Adjusted Pay Gap. It is important to note that a pay gap is always relative to the reference demographic, for example the female pay gap is the average difference in pay compared to the reference group male. A negative pay gap is also a pay gap, namely for the male demographic group compared to the female group. The colors in the graph represent whether the absolute pay gap increases or decreases. Blue when it decreases - a good impact, assuming we want to decrease pay gaps - and orange when it increases. To summarize, the colors do not represent the increase or decrease in the pay gap number itself, but instead represents an increase or decrease in the absolute pay gap, so in the example of gender, both for the male to female pay gap and the female to male pay gap.
The Compensation Drivers overview within your Compensation Model Results displays the explanatory value on the model for each individual compensation driver, together with all other compensation drivers (variables). As such, the base value group is selected when the model has taken the effects of all other groups into consideration, and is then the lowest paid value. The base value group can be different than the actual lowest paid group in your organisation. For example, let's take a model with two variables grade and job family. The lowest paid job family in the organisation overall might be Admin, however when the model takes the effects of grades into account, the job family with the lowest pay might be Services (assuming for example it has fewer low grades than admin) and this will be the selected base value for job family.
Yes, you can view the analysis configuration. Select "Pay Equity Analysis" from the navigation panel, and in "Analysis Overview" tab click on the "Show configuration" button located in the top right corner of the tab. You cannot update or edit an existing Analysis. When running a new Analysis, you can select "Presets" at the top, including "Last analysis configured by me" or "Last analysis configured for this dataset".
The outlier percentage is not influenced by gender. It represents the difference between the predicted salary and the actual salary of employees. The predicted salary is determined by objective factors within the model and individual employee characteristics, excluding gender, as we do not want gender to influence salary predictions.
First of all, you need to have a column in your datafile with your definition of "category of worker". Once you've run an analysis, navigate to the compensation model results. In the categorical results you will find the "estimated adjusted pay gap". This is essentially the pay gap per group, and finding your column variable for category of worker you will see the estimated adjusted pay gap per group. If you did not include this variable in the analysis, you need to navigate further down on this page, until you find "pay gaps breakdown by other groups" and select your variable of category of worker.
There are two ways you can go about this: Manually or Automated, which is an additional paid service.
For the manual route, you can export each of the analysis into excel files and then consolidate the key results into one sheet, using employee count to weight each results and consolidate to a global result if required.
For the automated route, we have an additional feature and service, which helps organizations to automatically consolidate the results across various analyses into one excel file.
Reach out to clientservicespe@beqom.com or raise a support ticket to engage a consultant. Once you have engaged the service, this feature will be enabled and our consultants will help you to configure and test it.
- Average: you calculate it by adding all the numbers together and then dividing by the total number of values. It's a common measure of central tendency, but it can be affected by extreme values.
- Percentiles: percentiles divide the data into 100 equal parts. The most common quartiles are the 25th percentile (Q1), 50th percentile (Q2, which is also the median), and 75th percentile (Q3). These values help describe the spread and distribution of data. The rance between the 25th and 75th percentiles and shows where the middle 50% of the data lies, and the range between 10th and 90th percentiles shows where 80% of the data lies.
- Percentiles: percentiles divide the data into 100 equal parts. The most common quartiles are the 25th percentile (Q1), 50th percentile (Q2, which is also the median), and 75th percentile (Q3). These values help describe the spread and distribution of data. The rance between the 25th and 75th percentiles and shows where the middle 50% of the data lies, and the range between 10th and 90th percentiles shows where 80% of the data lies.
- Standard deviation: standard deviation is a measure of how spread out the values in a dataset are. It tells you, on average, how much each data point differs from the mean. A small standard deviation means the data points are close to the mean, while a large standard deviation means the data points are more spread out.
Statistical significance refers to the likelihood that the results of a study are not due to random chance. It is commonly measured by the p-value, and a low p-value (<0.05) means the result is statistically significant, suggesting the findings are likely meaningful. However, it does not guarantee the effect is large (the impact on compensation for example) or practically important, the significance is only telling you the significance of the effect.
Multicollinearity happens when two or more variables in a regression model are highly correlated with each other. This makes it difficult to understand the individual effect of each variable on the outcome. It can lead to unreliable results. To address it, the system might remove one of the related variables.
Linear regression is a statistical method used to model the relationship between a dependent variable (compensation) and one or more independent variables (objective factors, such as job role, grade, etc.), assuming a straight-line (linear) relationship. The goal is to find the line that best fits the data, which allows for predicting the dependent variable based on new values of the independent variables.
PayAnalytics is a comprehensive tool designed to measure and analyze compensation models, calculate pay gaps, and provided raise suggestions to remediate pay gaps. It also supports compliance with country-specific reporting requirements related to pay equity legislation. On the other hand, beqom is developing a distinct pay transparency software aimed at enhancing individual-level reporting to employees. This solution is specifically designed to meet the requirements of Article 7 of the EU Pay Transparency Directive (EUPTD), ensuring that employees’ right to information is fully addressed. Please reach out to you Account Manager for further information on Pay Transparency.
To run a pay equity analysis, five types of fields are required:
- Employee ID
- Employee group
- Demographic variable
- Compensation data
- Some explanatory factors (variables)
Yes. Ask your account manager about our client service catalogue; a "data readiness check" service is available to support you with exactly this.
The system and models work with full-time annualized compensation data. That means the system will need to convert any non full-time employees into full-year equivalents before using the data in the pay equity analysis. As a prerequisite, your dataset needs to contain an FTE data field, with values between 0 (no work) to 1 (full-time). Within the PayAnalytics platform, after importing your data, in the data configuration form, you can select an optional feature to "Automatically scale compensation components for part-time employees". Next, select the compensation components you would like to auto-scale and finally assign your FTE data field.
The compensation elements to include depend on and vary by what you plan to use your pay equity analysis for. We suggest - where available - to include different compensation elements in individual columns (e.g. base salary, allowances, bonuses) and adding a Total Compensation column which is the sum of all compensation elements. This will give you the flexibility to run varying analysis on the same dataset. As a starting point, when running your first few analysis, we recommend using either base salary or total compensation to keep things simple. In case your goal is to use the data and analysis for local reporting requirements, you will need to include the compensation elements required within your specific reporting legislation. We recommend engaging with your local legal compliance team for advice. For insights into local requirements, head to our Government required reports section in our Help Center for further information.
When dealing with missing values in a numerical variable, using zero can distort the results. A common and recommended approach in this case is to use the mean (average) of the available values and substitute that for the missing ones. It’s a simple and transparent method that works well when the proportion of missing data is low and the variable doesn’t vary significantly across groups.
However, if there are many missing values or if you expect the variable to vary meaningfully between groups (e.g., by job level, gender, or department), a better approach might be group-wise mean approach. In that case, we calculate the average within each group and use those group-specific values instead of one overall average.
Data is most commonly uploaded via an Excel data file. The file in configured into the system in the form of required and optional data fields.
Click here to read our "Uploading data" article where you will find a checklist with things to have in mind when setting up and uploading data.
Labels are used to organise data sets and find them effectively. They are also used to manage data access when using access controls. Click here for more information on access control.
When configuring the data file into PayAnalytics, you are required to select a compensation component. This selection is solely for the default display view of your salary data in the overview page, and the compensation component on which the summary's statistics will be based. Note that you can always change this configuration at a later date.
When configuring the data file into PayAnalytics, you are required to select a main group. This is solely for the default display view of your salary data in the overview page, and how the system automatically groups the employees on the x-axis of the overview graph. This selection has nothing to do with any analysis.
No it doesn't. Gender is usually the first demographic variable set up because it's universally applicable and a key priority in most regulations. However, you can configure any variable first, for example race or ethnicity.
Any demographic for which you have employee data and on which you'd like to run a pay gap analysis can be included. Common examples include gender, ethnicity/race, nationality or age. Other less common variables might include veteran status, socio-economic status, disability status or religion.
Currently, the system only allows you to configure up to two demographic variables. If you have more variables you'd like to include, consider generating separate analyses including the additional demographic variables.
Currently, the system only allows you to configure up to two demographic variables. The maximum number of values for the gender variable is four:
- Female
- Male
- Non-binary
- Non-reporting
If you have more genders in your data, you can configure the gender variable as the second demographic variable. Then you have an unlimited number of values. If you have a large number of values within your demographic variables, the pay gap analysis results might be affected, so might want to consider grouping values into larger groups.
Certain local legislations, such as Canada, Sweden and Norway require companies to compare salary for work of equal value. If you have an internal structure based on a point evaluation scheme, you might want to consider using the job evaluation features.
Depending on your internal structure or local requirements, where you may need to perform value-based analysis or reporting, for example work of equal value. You have the 3 options:
- If value points have already been assigned to jobs, simply include value points as a variable in your data file.
- Another option is to upload a point evaluation scheme into the Job Evaluations module
- If you're yet to start on assigning value to jobs, build your valuation scheme in the system itself, where you can either customize your own scheme, or use a built in template.
If you have built your evaluation scheme in the system, then, on the dataset configuration page you have the option to connect the Job Evaluation scheme that you have set up in the system to the uploaded employee data file based on a reference variable, such as job family, job role etc. Find here more detailed instructions on how to set up a Job evaluation scheme.
In the System Settings and Colour Palettes, you can customize your own color palette and apply to datasets in the dataset configuration. Click here for more information.
You can limit users' access to specific data sets by configuring access control. Click here for more information.
The most common reason for a data set failing to upload (or being very slow to upload) is the size of the data set. By limiting the size of your data set, you will be more successful in importing files. If you have 10k or fewer rows of employee records, we recommend limiting to 100 columns or fewer. If you have more than 10k rows of employee records, we suggest limiting to 50 columns or fewer.
The most common reason for a data set failing to upload (or being very slow to upload) is the size of the data set. By limiting the size of your data set, you will be more successful in importing files. If you have 10k or fewer rows of employee records, we recommend limiting to 100 columns or fewer. If you have more than 10k rows of employee records, we suggest limiting to 50 columns or fewer.
Within the PayAnalytics system, the demographic variable "gender" has some preset values, and therefore can have at maximum 4 values. In the system, these values are mapped to male, female, non-binary, and not-reported. In case your gender demographic has more than 4 values, there are two possible workarounds you can use:
- If possible, within your dataset, map any non-male and non-female values either to either non-binary (agender, pangender etc.) or not-reported (empty, choose not to report).
- Within the data configuration step, when configuring your demographic variable uncheck, "Contains gender". Then you can configure a new variable and use more gender definitions than the four "system" ones.
If you have set a maximum raise, as well as specified that all employees should be brought to a set outlier threshold, you might see employees receive a raise suggestion that is larger than the maximum raise. In order to bring all employees to the set outlier threshold, a raise larger than the set maximum raise is needed. In other words, bringing employees to the outlier threshold overwrites the maximum raise.
If you are working within a budget, and the budget is not large enough to fulfill all set requirements, no raises will be suggested.
Consider the following example, with two scenarios of remediation that only differ in size of max. raise cap (salary increase):
- Cap 5%, cost ~9M EUR, 5,400 addressed outliers
- Cap 4%, cost ~16M EUR, 10,000 addressed outliers
In the first scenario, fewer employees require raises to reach the target because the employees mostly affecting the pay gap receive higher raises (5%), resulting in an achievement of the target at a lower cost. The individuals affect the pay gap differently and, depending on the impact on the pay gap (cost-effectiveness) or the outlier percentage (fairness), the system calculates the raises in a specific order. With a maximum of 5% raise, the system manages to reach the pay gap target by giving larger raises to fewer employees. With a maximum of 4% raise, the system needs to give a raise to more employees in order to reach the pay gap target.
With the balance toward fairness in the raise configurations, the system starts by targeting the largest outliers and moves down the list. In the second scenario, by giving the higher negative outliers a smaller increase (4% instead of 5%), more employees need raises to meet the same target, resulting in higher costs.
The pay equity models work with full-time annualized compensation data. That means that any raise suggestions are based on and reflect the full-time and annualized equivalent. For part-time employees, the raise suggestions and associated costs of achieving pay equity targets can be prorated based on the part-time hours (if you have used the "Automatically scale raise components" option). Within your data, you will find three helpful fields: "Raise (automatically scaled), "Raise" and "Raise (%)". Of these three options, "Raise" will give the part-time equivalent of the raise, whereas "Raise (automatically scaled)"" is the full-time equivalent of the raise.
There are a few possible reasons for this, depending on your raise suggestion configuration settings:
- Size of the pay gap: the system is working to reduce the overall pay gap by aligning the average outlier percentage for one demographic group (such as women) with that of the reference demographic group (for example, men). Although a woman's outlier percentage is 0%, the system might be suggesting a raise because, to reduce the overall gap, some women at or near their predicted salary may need raises to bring the group average closer to that of men.
- Group fairness setting: if this is set to 75% for example, it prioritizes raises to women in larger groups with larger pay gaps. If the specific employee is in a group (such as country), where we find a significant pay gap affecting many women, they may be suggested a raise despite having actual meet predicted may, purely because this group of employees is prioritized for a raise. There are several possible reasons for this, depending on your raise suggestion configuration settings.
- Size of the pay gap and your target: if your target is zero, meaning you aim to eliminate the pay gap entirely, the system works to ensure that both women and men have an equal likelihood of having a positive or negative outlier percentage. Even if a woman's outlier percentage is positive (above 0%), the system may still recommend a raise. This is because, to close the overall gender pay gap, some women may still need raises to bring their salaries closer to those of men.
- Maximum raise limitations: the maximum raise allowed should be considered in relation to the size of the pay gap. If the pay gap is large, the system may quickly run out of women with negative outlier percentages, even after they have received the maximum raise. In such cases, the system may need to give raises to women with positive outlier percentages to bring their pay up to the same level as men.
The goal of the raise suggestions is to close the pay gap. In cases of a gender pay gap, only the underpaid gender will receive a raise. For example, if there is a pay gap favoring males, only female employees will receive a raise. Even though some male employees may be negative outliers (with a lower actual salary compared to their predicted salary), they will not receive a raise because the focus is on closing the gender pay gap. The objective is to ensure that both male and female employees have an equal distribution of outliers, meaning they are equally likely to be either a positive or negative outlier.
This could be due to various configurations of your raise suggestion, including:
- Group fairness: if an employee is part of multiple underpaid groups, the system will prioritize raises for that individual to address pay disparities across groups. As a result, employees not in underpaid groups may not receive raises.
- Defined target: the system is suggesting raises until the pay equity target has been reached. Therefore, depending on the size of the pay gap and the pay equity target, the number of raises may vary.
- Max raise defined: when a high maximum raise is set, the system will suggest fewer but larger raises to meet the pay equity target. Conversely, if the maximum raise is lower, the system will suggest more, but smaller, raises to close the gap.
- Close by group method: when closing pay gaps per group, the system treats each group separately. For example, if a group has a pay gap favoring males, the system will suggest raises for females. In another group, where the pay gap favors females, raises will be suggested for males.
Understanding how reference groups are selected is key to understanding if a group is eligible for a raise, and whether you will get raise suggestions to close the pay gap. Why? Because the reference groups themselves are not eligible for raise suggestions.
Selection of reference group.
A demographic group is eligible for a reference group if:
- The headcount is at least 25% of the headcount of the largest demographic group.
- The largest demographic group is always eligible for being the reference group.
- The headcount is at least 10% of the entire population.
- The headcount is at least the minimum group size threshold (the default number is 7 but can be adjusted in the System Parameters).
Once the eligible demographic groups are identified, the group with the highest adjusted pay is selected as the reference group.
Note: when closing the pay gap by groups, a reference group will be selected for each group.
The arguments for the requirements are:
The reference demographic group needs to be at least 25% of the largest demographic group, and at least 10% of the total population. This ensures, that the system will not suggest giving raises to the majority of the employees, due to the minority being higher paid. For example, 100 male and 5 female employees, with a pay gap in favor of females, the system will not suggest raises for 100 employees due to the 5 higher-paid employees. These scenarios require a manual review.
The lower-paid demographic group that has fewer employees than 7 will not get a raise. Note that this can be configured in the system parameters, but the default value is 7. This requirement ensures that raise suggestions to close a gender pay gap, where the gender groups are really small, will not be generated. These scenarios also require a manual review.
The system has a certain level of tolerance built in to 0.04% points within target. This is because - depending on the size of the dataset - the system might not be able to suggest raises that exactly (to the monetary value or percentage) meet the target. You have the option to set the pay gap target to 0.9%, to ensure the pay gap is no larger than 1%.
If the raise configuration is focused entirely on cost-effectiveness (100%), it does not take compensation drivers into account. Instead, raises are allocated to employees of the underpaid gender who are the least expensive to compensate, such as lower-paid employees.
Once fairness is incorporated into the raise configuration, the system begins to consider compensation drivers when making raise suggestions. However, it only accounts for the drivers included in the compensation model.
When the focus is on individual fairness, the system prioritizes the most underpaid employees based on the outlier percentage, which is determined by each individual's predicted salary. This predicted salary is calculated using all compensation drivers in the model. On the other hand, when fairness is assessed at the group level, the system evaluates whether there are any gender-based discrepancies within each compensation factor. For example, if the system detects a disparity in tenure, such as men being rewarded more for tenure than women, the system will adjust by granting raises to women based on their level of tenure. To conclude, the raise suggestions model takes compensation drivers into account once fairness is incorporated into the raise configuration.
There is no right or wrong pay gap. It depends on how large your current pay gap is, how much budget you have available to remediate pay gaps, and the level of regulatory or other pressure. For example, from 2025 the European Pay Transparency Act will apply, which prescribes a maximum 5% pay gap per Category of workers. In case your pay gap is currently 10% or higher, you may want to implement a step-wise approach to achieving compliance, perhaps starting at 8% and then gradually raising salaries until 5% pay gap is achieved.
In case you're managing a multi-currency payroll, during the currency conversion set up, you would have selected a main reporting currency. This is the currency in which your budget is measured.
By defining the lowest possible raise for an individual, you ensure that the raises suggested for your employees are not too low. By having a minimum raise threshold and optimizing the fairness in the raise configurations, the system will allocate fewer but larger raises, instead of many very small raises to the employees.
Us this option to make sure that none of your employees is more than 20% below their predicted compensation. You can set an outlier threshold in the raise configurations and system will give raises to all employees, no matter their gender, to bring them up the outlier threshold.
There is no right or wrong value to input here. It very much depends on your pay equity goals and your distribution of outliers across your employees, as well as what you consider fair and realistic. Setting a low outlier percentage, like 10%, will most likely reveal a large number of outlier points, possibly too many to provide raises within a reasonable budget. Setting a very high outlier percentage, like 90%, will most likely only expose a few of the most extreme cases to remediate, but will still leave a few extreme cases potentially without remediation.
This very much depends on your specific organization. An example might be where a group of employees are part of a union and have very specific compensation arrangements to consider. Another example might be where board-level leadership would not be included in raises for strategic reasons.
You can create groups in the Employee List table within the Employee Overview page. Click on the three dots next to an employee, select the employee action "Add To Group". If you have not created a group yet, first click on the (+) to add a group name and description. You can also select multiple employees, by check the boxes in the employee list, then click on "Manage group membership" and add to a group or create a new one.
When closing pay gaps in practice, there are always restrictions on how raises should be allocated. By defining the highest possible raise for an individual (along with other optional configurations), you ensure that the suggested raises match your realistic needs.
In an adjusted pay gap analysis, we aim for the average distance from the predicted salary to be equal for each of the demographic groups (for example, both men and women). This ensures that men and women are equally likely to be paid above or below their predicted salary, promoting pay equity. When you choose a fairness weight of 100% and therefore a cost weight of 0%, raise suggestions are entirely driven by the compensation model, based on your selected explanatory variables (job role, country, performance, etc.), rather than optimizing for costs. In our example, raises are targeted to women who have an actual salary that is lower than their predicted salary from the compensation model. Whereas if you set the fairness weight to 0% and cost to 100%, the model would optimize for costs, which means mainly giving raises to women who will have cost-efficient impact (generally those in lower compensation brackets) to bringing the average outlier percentage up to the level of men.
In an adjusted pay gap analysis, we aim for the average distance from the predicted salary to be equal for each of the demographic groups (for example, both men and women). This ensures that men and women are equally likely to be paid above or below their predicted salary, promoting pay equity. When you choose a group weight of 100% and therefore an individual weight of 0%, the raise suggestions focus entirely on addressing pay gaps that affect larger groups of women or more significant pay gaps in smaller groups rather than solely focusing on individual employees who are underpaid. This means that the system prioritizes group-wide pay equity (group fairness) over individual fairness.
No, the target budget can only be used at an overall level, not at a group level. At a group level, the remediation can only be based on the pay gap target and results will display what the required budget is to achieve your pay gap target on a group level. This will give you the information to understand whether your group level budge is sufficient to close the group pay gaps to your target levels.
PayAnalytics is now a part of beqom and as such integrates with beqom's compensation suite. Other integrations are on a custom basis and need to be discussed with the PayAnalytics by beqom account manager. Depending on the requirements, custom integrations may require significant time and extra costs.
You need to have registered to PayAnalytics with an email address that matches your organization's email domain. If you have registered with an external domain (e.g. name@gmail.com), you will not be able to gain access. In that case, you can either (re)register with your organizations domain email address, or route your support ticket through another user within your organization who does have access.
PayAnalytics API documentation and endpoints are available to all our customers upon request. In summary, our APIs enable three types of functions:
- Import dataset (updates) in PayAnalytics from the HRIS;
- Run preconfigured analysis on existing datasets within PayAnalytics;
- Download the datasets and specific analysis results from PayAnalytics.
PayAnalytics provides access to API endpoints required to integrate with our system. As a customer, you will be responsible for:
- Creating the trigger events to run the above functions within/ from your HRIS (e.g. Workday). PayAnalytics API's are the receivers of these trigger events (cronjob).
- Consolidating all required data for import (e.g. from Workday) and submitting the data through our API's to PayAnalytics. PayAnalytics does not consolidate the relevant employee data from multiple data sources.
As part of the onboarding process, you would have run your first pay equity analysis, and have a view of which data fields to include and preset analysis configurations. API authentication is automatically available in every customer instance from your system settings as an admin user.
You can find your API key once logged into your PayAnalytics account, through the following steps:
- In the top right corner click your user name to get to "Your Settings".
- Click "API access" key from the list of options.
- Click "Create an API access key" button to copy the key.
In certain cases, the Guide (Digital Assistant) might need a wake up call. Please refresh your browser and click the Guide icon (lightbulb), located in the right top corner of your screen, again to relaunch it. The full content should now be visible.
The standard session for a user that logs in through form based login and SSO is terminated after 60 minutes of inactivity.
PayAnalytics operates three separate data centers:
- EU: Located in Ireland with auxiliary backups stored in Germany.
- US: Located in N Virginia with auxiliary backups stored in California.
- Canada: Located in Montreal with auxiliary backups stored in Calgary (as of Jan 2024).
PayAnalytics exclusively serves data over an encrypted HTTPS connection (TLSv1.3, using Elliptic-curve Diffie-Hellman for key agreement and 256bit AES encryption). TLSv1.2 also supported but with a very limited set of cipher options.