[Global] A positive step towards closing gender pay gap with data analytics

[Global] A positive step towards closing gender pay gap with data analytics
19 Apr 2021

Research conducted by the Institute for Women’s Policy Research estimated that women wouldn’t receive equal pay until 2059. With International Women’s Day in mind, Personnel Today explores how effective data analytics can be in helping an organisation develop a plan to close its gender pay gap.

The gender pay gap is an issue that provokes strong feelings. This year one of the themes of International Women’s Day on March 8 was “How will you help forge a gender-equal world?” Personnel Today argues that we need to leverage data to illustrate quite how pervasive gender pay disparity is.

Despite excessively slow progress toward gender pay equity, some nations and employers are now taking action to accelerate the process. Countries such as the UK, France, and Spain have introduced legislation making gender pay gap reporting a requirement for organisations of certain sizes, now other countries are following their example.

This positive step gets to the heart of the problem; without data insights to provide transparency into an organisation’s pay equity status, there can be no way to establish benchmarks. Without benchmarks, even the most well-meaning organisations will struggle to develop a workable plan to remedy pay equity discrepancies.

Payroll data and analytics

An organisation’s payroll database can reportedly serve as the primary source of information for the analysis of payroll trends and insights across the company, including understanding pay equity. Unfortunately, Personnel Today says, many organisations lack the knowledge or the tools to analyse and run payroll reports to provide pay equity benchmarking insights. 

According to Salary.com’s 2020 Pay Practices and Compensation Survey, 56 per cent of respondents said their organisations did not have a formal process to address pay equity, while 70 per cent did not use salary structures to manage pay. Another challenge is that organisations may not be capturing sufficient employee payroll data to assess pay equity accurately. (Link via original reporting)

The first step is to understand how essential researching the data capture options and reporting functions of your payroll systems is. Many global organisations use multiple payroll platforms, which can be a challenge when seeking consistent data insights across the company. A consolidated global payroll system that is tightly integrated with human capital management (HCM) systems can provide aggregate insights and analysis. 

With the right payroll data inputs, analytics, and reporting capabilities, any organisation can swiftly assess and identify pay gaps. Personnel Today examines the subject further.

Research conducted by the Institute for Women’s Policy Research estimated that women wouldn’t receive equal pay until 2059. With International Women’s Day in mind, Personnel Today explores how effective data analytics can be in helping an organisation develop a plan to close its gender pay gap.

The gender pay gap is an issue that provokes strong feelings. This year one of the themes of International Women’s Day on March 8 was “How will you help forge a gender-equal world?” Personnel Today argues that we need to leverage data to illustrate quite how pervasive gender pay disparity is.

Despite excessively slow progress toward gender pay equity, some nations and employers are now taking action to accelerate the process. Countries such as the UK, France, and Spain have introduced legislation making gender pay gap reporting a requirement for organisations of certain sizes, now other countries are following their example.

This positive step gets to the heart of the problem; without data insights to provide transparency into an organisation’s pay equity status, there can be no way to establish benchmarks. Without benchmarks, even the most well-meaning organisations will struggle to develop a workable plan to remedy pay equity discrepancies.

Payroll data and analytics

An organisation’s payroll database can reportedly serve as the primary source of information for the analysis of payroll trends and insights across the company, including understanding pay equity. Unfortunately, Personnel Today says, many organisations lack the knowledge or the tools to analyse and run payroll reports to provide pay equity benchmarking insights. 

According to Salary.com’s 2020 Pay Practices and Compensation Survey, 56 per cent of respondents said their organisations did not have a formal process to address pay equity, while 70 per cent did not use salary structures to manage pay. Another challenge is that organisations may not be capturing sufficient employee payroll data to assess pay equity accurately. (Link via original reporting)

The first step is to understand how essential researching the data capture options and reporting functions of your payroll systems is. Many global organisations use multiple payroll platforms, which can be a challenge when seeking consistent data insights across the company. A consolidated global payroll system that is tightly integrated with human capital management (HCM) systems can provide aggregate insights and analysis. 

With the right payroll data inputs, analytics, and reporting capabilities, any organisation can swiftly assess and identify pay gaps. Personnel Today examines the subject further.