Cost to close
The annualised cost of raising pay to remove the unexplained gap for the employees affected.
Cost to close is the annual cost of the pay adjustments needed to bring an unexplained gap to zero for the employees concerned. It converts a compliance finding into a budget line that can be planned and phased across pay rounds rather than absorbed in one year. Calculated per category, it also shows where remediation is affordable and where a structural change to the pay structure is the cheaper answer.
More in Analysis
Gender pay gap
The difference between the average pay of men and of women, expressed as a percentage.
Mean and median
Two required views of the same gap: the average, and the midpoint. They answer different questions.
Pay gap decomposition
Splitting a raw gap into the parts that grade, tenure and hours explain, and the part that remains.
Unexplained pay gap
The part of a gap that objective, gender-neutral factors do not account for. The part that has to be answered …
Start with a baseline on your own data.
One pay-period extract produces the seven figures, the categories that breach, and what closing them would cost.