Equal Pay Risk Tool

Equal Pay Risk Tool SKU_9005

Consider these questions:

  • Are you concerned about ensuring equality in pay levels for your men and women?
  • With a growing legislative focus in the EU, does your organisation know its areas of risk with regard to pay equity?
  • Do you aspire to be a leading employer supporting gender parity, diversity and inclusion?

Mercer has launched the Equal Pay Risk Tool to help organisations identify areas of risk in how men and women are paid quickly and simply.

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  • Overview
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Mercer has supported organisations become more diverse and inclusive for many years around the world, led by our flagship When Women Thrive research and conference programmes. Gender pay equity is a critical foundation for improving gender parity, diversity and inclusion and we have worked in this space for many years, from helping organisations with complying with local legislative requirements to pay equity studies using multiple regression analysis. Our Equal Pay Risk Tool is designed to be a less complex and quick approach for organisations wanting to take their first steps in understanding their potential risk exposure. It is not intended to be a substitute for legal advice but rather an aid to help you prioritise your attention on pay outliers. The tool is based on similar tools applied in the UK and Sweden over a number of years.

Mercer’s Equal Pay Risk Tool will provide you with a view where there are systematic risks in your compensation system as well as a list of individuals that require review. Depending on what data you can access this can be supporting with potentially mitigating factors to allow easy review. It’s a standardised tool that can be deployed anywhere around the world, driven by broad EU equal pay standards.

What do you receive?

Data outputs are driven and organised by country legal entity to mirror local country views on common employment. All other features are standardised to facilitate easy central management of the data process.

   A visual summary gender distribution in your company – by level and overall; full-time vs part-time

   Analysis of pay at three levels


BY JOB: comparison of pay for men and women performing the same work, organised by list of jobs defined through the Mercer job library. A standard +/-5% risk parameter is applied but this can be adjusted depending on your risk appetite.

BY LEVEL AND JOB FAMILY: comparison of pay for men and women performing work at the same level (e.g internal grade, IPE etc) within the same job family (or function as a proxy). A standard +/-10% risk parameter is applied.

BY LEVEL: comparison of pay for men and women performing work at the same level (e.g. internal grade, IPE etc) who are +/- 15% from median for whole level. The goal here is to pick up any broad equal value outlier.

INDIVIDUAL OUTPUTS: any individuals who fall outside of the parameters at the different measurement levels are collated into a list, presented back with any individual characteristics you have provided from your HRIS that can be potentially legitimate mitigation factors (e.g. age, location, family/function, sustained performance score). This is the priority list for your review.


   Part-time analysis

A key area of risk is the treatment of part-time workers versus full-time workers. Our analysis is undertaken on a full-time equivalent pay basis:


BY JOB: jobs are identified where part-time workers at the median are paid +/-5% compared to full time workers.

BY LEVEL: levels and levels within job families are identified where groups of part-time workers are paid +/- 10% compared to their full-time peers.

BY INDIVIDUAL: lists of part-time workers that are paid at a variance compared to norms for the job or level.


   Occupational segments/domination

A further area of risk is to understand if those roles that are dominated by one gender are treated consistently with others. To understand this, the tool will identify those jobs that are more than 60% dominated by one gender (male or female). For each job that is ‘gendered’, analysis is undertaken to compare to the median pay of other jobs, at the same level AND compared to lower level jobs in the organisation. The output, highlight those jobs where attention must be given to avoid risk either through correction or close attention to the supporting market data evidence.

Contact Information

For more details contact your local country consultant:

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  • Short DescriptionHelps organisations identify areas of risk in how men and women are paid quickly and simply.
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