Overview
The Pay Equity Preview Report (Beta) helps organisations prepare for the EU Pay Transparency Directive by providing an early view of potential gender pay gaps. It enables HR teams to review compensation data, identify pay disparities, and address issues before reporting requirements become mandatory.
Permissions
To generate the report, you require View Salary or Manage Payroll on global or a specific business unit.
How the Calculation Works
The report calculates pay gaps using Full-Time Equivalent (FTE) salaries, based on both Basic Salary and Actual Total Salary, including any allocated variable pay.
You can choose whether calculations are based on the Median or the Average salary. Positions with a gender pay gap greater than 5% are flagged as potential breaches.
Real-World Example
If a position has the following FTE Basic Salaries:
Male employees: €42,000, €46,000, €52,000 (Average = €46,667; Median = €46,000)
Female employees: €40,000, €43,000, €45,000 (Average = €42,667; Median = €43,000)
If the report is configured to use the Average, the gender pay gap is calculated as:
(46,667 - 42,667) / 46,667 = 8.6%
Since the pay gap exceeds the 5% threshold, the position will be flagged as a potential breach.
If the report is instead configured to use the Median, the calculation is:
(46,000 - 43,000) / 46,000 = 6.5%
This position would also be flagged because the median pay gap is greater than 5%.
Generating the Preview Audit
To generate the report:
- Open the Pay Management module from the left-hand menu.
- Select the Pay Equity tab.
- Click Generate Preview Audit.
- Select the required report filters, including Department, Year, and Contract Type.
- Choose whether the report should use the Median or Average calculation method.
- Click Generate Report to download the report as a spreadsheet.
Understanding the Report
The exported spreadsheet contains several worksheets, each providing a different level of detail.
- Provides general information about the report, breaking down its core components, calculation foundations, and analytical boundaries. The summary includes the:
- Reporting year
- Calculation basis (Average or Median)
- Report assumptions and exclusions
- Notes explaining how pay gap calculations are performed
- Provides a high-level summary of the organisation's gender pay gap, including:
- Average or median male pay
- Average or median female pay
- Overall pay gap percentage
- Variable pay comparisons
- Gender distribution across pay quartiles
- Shows how the organisation's pay gap changes over time, including:
- Overall pay gap percentage by year
- Number of positions exceeding the 5% pay gap threshold
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Summarises pay information by position and organisation unit. For each position, the report displays:
- Total employee count
- Female and male representation
- Average or median pay by gender
- Pay gap percentage
- Whether the position exceeds the 5% threshold
Where there is insufficient data to make a comparison, the position is marked as N/A (Sample too small).
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Provides employee-level information used in the calculation of the report, including:
- Employee and position details
- Payslip periods included in the calculation
- Actual hours worked
- FTE salary values
- Variable pay
- Percentage difference from average pay
- Pay quartile classification
This worksheet can be used to understand how individual employee records contribute to the overall results.