1. Introduction
The Pay Equity Analysis (PEA) Start-Up Guide provides a structured approach to launching a pay equity analysis within an organization. It introduces the fundamental concepts, outlines the required steps, explains the analytical models used, and clarifies how to navigate the process from preparation to reporting. The material is designed for use in kick-off meetings with clients and serves as an onboarding framework before full-scale analysis begins.
The guide covers pay gap reporting requirements, equal work and work of equal value, the MIA model for pay setting, challenges in pay equity analysis, workflow planning, and expectations for each meeting in the implementation process.
2. Equal Work and Work of Equal Value
Equal Work
Equal work refers to jobs that are identical or very similar in duties, required skills, level of responsibility, and effort.
What should be analyzed?
Differences in salary between women and men within each equal job group
Individuals who deviate significantly in pay compared to peers in the same work
Work of Equal Value
Work of Equal Value refers to roles that are not identical but carry comparable value to the organization based on skill, effort, responsibility, and working conditions.
What should be analyzed in Sysarb?
Salary differences between female-dominated jobs (≥60% women) and non–female-dominated jobs that are valued equally or lower but have a higher average salary
These analyses build the foundation of compliant equal pay work and support the interpretation of systemic versus individual-level disparities.
3. Pay Gap Reporting Requirements
The guide includes a summary of EU directive requirements for pay transparency. Organizations must report:
Mean and median pay gaps for total compensation
Gaps in complementary or variable pay components, including bonuses, overtime, travel benefits, allowances, training compensation, termination payments, statutory sick pay, and occupational pensions
Percentage of men and women receiving variable or complementary pay
Gender pay gaps by categories of workers (equal jobs) broken down by base salary and variable components
Local country requirements must also be incorporated and updated based on client-specific legislation.
4. Importance of Conducting a Pay Equity Analysis
The guide highlights multiple strategic benefits:
Strengthening employer brand: A commitment to pay equity enhances perception among talent, customers, and other stakeholders.
Increasing trust and fairness: Transparency fosters a workplace culture where employees feel valued and respected.
Enabling data-driven decision-making: Understanding salary drivers supports informed, equitable compensation decisions.
Supporting long-term culture and performance: Insights from PEA can guide targeted salary adjustments, clearer pay policies, and fair career development opportunities.
PEA is described not only as a compliance requirement but as a long-term strategic advantage for organizational health.
5. The MIA Model for Pay Setting
The MIA model is a core conceptual framework for both pay setting and pay equity analysis.
Market (M)
External competitiveness based on labor supply and demand, industry benchmarks, and regional pay norms.
Individual (I)
Personal attributes that influence pay, such as skills, experience, performance, and personal contributions.
Assignment (A)
Job-related factors, including scope, responsibility, complexity, and job evaluation outcomes.
MIA in Pay Equity Analysis:
The model helps explain salary variations within equal work groups and provides a structured way to assess whether differences are justified. The guide recommends using job profile + grade, subfamily + grade, and family + grade combinations depending on the granularity and statistical reliability required.
6. Grouping Methods for Equal Work Analysis
Three main grouping combinations are illustrated, each with strengths and limitations:
1. Job Profile + Grade
Ideal for strict equal work comparisons
Clear comparability and best for identifying individual outliers
Risk: small group sizes and reduced statistical reliability
2. Job Subfamily + Grade
Balanced level of granularity
Good for comparing related roles with shared core content
Useful for early diagnostic work
3. Job Family + Grade
Largest group sizes and most robust statistics
Easily scaled and communicated
Risk: overly broad groupings can obscure individual inequities
The chosen grouping should match the maturity of the client's job architecture and the purpose of the analysis.
7. Work of Equal Value (Comparative Jobs)
The analysis focuses on identifying pay gaps between female-dominated jobs and comparable roles that are valued equally or lower but paid more. Each comparative group requires investigation to determine whether gaps arise from:
Historical pay practices
Market pay at time of hire
Structural biases
Role misclassification
The guide emphasizes the need for strong job evaluation foundations to ensure reliable comparisons.
8. Challenges in Pay Equity Analysis and How to Address Them
The guide identifies common challenges and offers practical solutions:
Challenges
Difficulty determining whether gaps are due to bias or historical patterns
Diverse job roles and locations with differing pay structures
Sensitivity around communicating pay gaps
Broad job titles not reflecting actual responsibilities
How to Address Them
Use filtering tools to examine data by tenure, age, business unit, or location
Engage managers to understand context behind pay decisions
Use regression analysis to control for age, company tenure, and job tenure
Strengthen job architecture and job evaluation systems
Frame findings as opportunities for improvement
Provide action-oriented recommendations
These methods help ensure a balanced, evidence-based, and constructive process.
9. Implementation Process and Timeline
The Start-Up deck includes a detailed phased plan for meetings during the PEA implementation. Key steps are divided as follows:
Kick-Off (Meeting 1)
Launch analysis from job architecture
Demonstrate dashboard functions
Review equal job setup
Select one job group for sample analysis
Meeting 2
Quality-check employee classification, job levels, codes
Validate job valuation where no job architecture exists
Meetings 3 & 4
Investigate pay gaps within equal and comparable jobs
Review outliers with managers
Document comments and recommended adjustments
Meeting 5
Export key reporting values
Analyze trends and identify areas requiring attention
Plan internal communication
Wrap-Up
Review findings, confirm salary adjustments, and create the pay equity analysis report
Ensure all documentation is complete for compliance
Client-independent work includes ongoing preparation, tagging of explanations, and deeper investigation of gaps.
10. Recap and Next Steps
The final session recaps:
EU and local requirements
The MIA model
Importance of PEA
Process timeline
Dashboard values and interpretation
Clients are asked to:
Align on meeting schedule
Explore the platform before next session
Identify three equal job groups to review in detail
Prepare questions or data validation points
This ensures readiness for advanced analysis in the next session.
11. Summary
The Pay Equity Analysis Start-Up Guide outlines the essential foundation for conducting a compliant, data-driven, and actionable pay equity analysis. Through clear definitions of equal work and work of equal value, the MIA model, grouping logic, challenge mitigation strategies, and a structured implementation timeline, the guide prepares organizations to execute PEA effectively. It serves as both a strategic onboarding tool and a roadmap for navigating the full analytical process.