pay-equity
BusinessStatistical analysis of compensation for equity and regulatory compliance
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Pay Equity Analysis Skill
Overview
The Pay Equity Analysis skill provides capabilities for statistical analysis of compensation to identify and address pay disparities. This skill enables regression-based analysis, gap identification, remediation planning, and regulatory compliance reporting.
Capabilities
Regression Analysis
- Perform regression-based pay equity analysis
- Apply multiple regression methodologies
- Control for legitimate pay factors
- Handle multicollinearity issues
- Support various model specifications
Gap Identification
- Identify statistically significant pay gaps
- Calculate adjusted and unadjusted pay gaps
- Analyze gaps by protected class
- Detect intersectional disparities
- Quantify gap magnitudes
Remediation Planning
- Generate remediation recommendations
- Calculate remediation costs
- Prioritize remediation approaches
- Model remediation scenarios
- Track remediation progress
Reporting
- Create pay equity reports for leadership
- Generate board-level summaries
- Build compliance documentation
- Support external reporting requirements
- Maintain audit trails
Trend Monitoring
- Monitor pay equity trends over time
- Track gap closure progress
- Alert on emerging disparities
- Compare year-over-year results
- Benchmark against industry
Compliance Support
- Support regulatory compliance (EEOC, state laws)
- Generate required reports
- Document analysis methodology
- Prepare for potential audits
- Track legislative changes
Usage
Equity Analysis
const equityAnalysis = {
population: {
scope: 'full-company',
excludeNew: true,
newHireThreshold: 6
},
dependentVariable: 'base_salary',
protectedClasses: ['gender', 'race_ethnicity', 'age'],
legitimateFactors: [
'job_level',
'job_family',
'years_experience',
'tenure',
'performance_rating',
'location_tier'
],
methodology: {
type: 'multiple-regression',
robustnessChecks: true,
outlierTreatment: 'winsorize',
significanceLevel: 0.05
},
intersectionality: {
analyze: true,
combinations: [['gender', 'race_ethnicity']]
}
};
Remediation Model
const remediation = {
analysis: 'equity-analysis-2026-01',
approach: 'bring-to-predicted',
constraints: {
maxIndividualAdjustment: 10,
totalBudget: 500000
},
prioritization: {
method: 'largest-gap-first',
protectedClassPriority: ['gender', 'race_ethnicity']
},
implementation: {
timing: 'merit-cycle',
communication: 'manager-led'
}
};
Process Integration
This skill integrates with the following HR processes:
| Process | Integration Points |
|---|---|
| pay-equity-analysis.js | Full analysis workflow |
| salary-benchmarking.js | Market data integration |
| grievance-handling.js | Individual equity concerns |
Best Practices
- Regular Analysis: Conduct pay equity analysis at least annually
- Proactive Approach: Address gaps before they become complaints
- Consistent Methodology: Use defensible statistical methods
- Documentation: Document methodology and decisions
- Legal Review: Involve legal counsel in sensitive situations
- Holistic View: Consider total compensation, not just base
Metrics and KPIs
| Metric | Description | Target |
|---|---|---|
| Unadjusted Gap | Raw pay difference | Track and reduce |
| Adjusted Gap | Controlled pay difference | Not statistically significant |
| Remediation Completion | Identified gaps addressed | 100% |
| Trend Direction | Year-over-year gap change | Decreasing |
| Compliance Status | Regulatory requirement status | Compliant |
Related Skills
- SK-012: Job Evaluation (job grouping)
- SK-013: Comp Benchmarking (market context)
- SK-022: Employment Compliance (legal guidance)