Pay gap decomposition
Splitting a raw gap into the parts that grade, tenure and hours explain, and the part that remains.
Decomposition takes a raw gap and attributes it to measurable factors — grade mix, tenure, contracted hours — leaving a residual. It turns a single number nobody can act on into a set of components with owners: a grade-mix effect is a progression question, a tenure effect resolves over time, and the residual is the exposure. It is also what makes the explained portion defensible, because each attribution has to be evidenced rather than asserted.
More in Analysis
Cost to close
The annualised cost of raising pay to remove the unexplained gap for the employees affected.
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.
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.