How to Analyze Your Gender Pay Gap: An Employer’s Guide

According to a recent Glassdoor survey, more than two-thirds (67 percent) of U.S. employees say they would not apply for jobs at employers where they believe a gender pay gap exists.[1] Today, the gender pay gap is more than a social or legal issue. It’s an issue that can affect the ability of employers to attract and retain talent.

How should HR practitioners react to concerns about the gender pay gap? One increasingly popular way is to perform an internal gender pay audit to understand whether a gap exists at your company. This involves examining your own payroll data for evidence of a gender pay gap, and making recommendations to senior management about ways to lower gender barriers in recruitment, hiring, pay and promotion before they arise as broader organizational concerns.

In this guide, we provide a technical step-by-step guide for how to analyze your company’s gender pay gap — including example data and code — showing you how to apply the rigorous methods used by the economists at Glassdoor Economic Research to your own payroll data.

Our goal is to arm HR practitioners with the basic tools they’ll need to perform their own internal gender pay audit, without the need to rely on expensive outside consultants and with limited support from technical data science staff. By making it easy for companies to study their gender pay gaps — and share the results with employees — we believe we can make significant progress toward better gender pay fairness in today’s labor market.

Download the accompanying data and code for this guide at:
     R Code: https://glassdoor.box.com/v/gender-pay-code
     Data: https://glassdoor.box.com/v/gender-pay-data

More Resources:

[1] “Global Gender Pay Gap Survey” (February 2016), Glassdoor. Available at https://www.glassdoor.com/press/equal-pay-equal-work-glassdoor-survey-finds-perceptions-dont-match-reality-7-countries-majority-employed-adults-men-women-company-paid-equally/.

This Gender Pay Analysis Guide is provided for informational purposes only and does not constitute legal advice. You should not rely upon this information without seeking advice from an attorney who is competent in the relevant field of law.