Step 3 - Compare

Compare pay information

This is where you do your sums. For large numbers of employees, use a spreadsheet. If you're not good with spreadsheets, make a friend who is, or phone me. 

Start off with calculating the average basic pay for men and women, (or for particular age groups, ethnic groups etc) and work out the gap. The gender pay gap is calculated by dividing the average female pay per grade with the average male pay per grade and multiplying this by 100. This ratio is then subtracted from 100, which represents the pay gap. The pay gap should be represented as negative when the average female salary per grade is lower than the male, and positive when the female average is higher. 

Then think about the total reward, and look at elements such as bonuses, overtime, allowances and holidays. Another useful comparison is to compare the starting salary of incumbents over a set period, for example, 3 years.