Pay Equity Analyzer

Pro v1.0.0 1 view

Analyze compensation data to identify pay gaps, statistical outliers, and compliance risks with actionable remediation recommendations and cost estimates.

What You Get

Transform raw compensation data into defensible pay equity insights with specific remediation plans, cost estimates, and compliance guidance for audits, annual reviews, or M&A integration.

The Problem

Ensuring pay equity across your organization requires systematic analysis of compensation data, but manual spreadsheet analysis is time-consuming and error-prone. With growing regulatory requirements like California's pay transparency laws and the EU Pay Transparency Directive, you need visibility into potential equity issues before they become costly legal problems or audit failures.

The Solution

This skill transforms raw compensation data into actionable insights through rigorous statistical analysis. It calculates z-scores, coefficient of variation, and pay spread to identify outliers and inconsistencies within each role. When demographic data is available and legal to analyze, it calculates pay gaps by protected class, controls for legitimate factors like tenure, and assesses statistical significance using t-tests. Every finding comes with a clear risk rating tied to specific regulations and potential legal exposure. The output includes specific remediation recommendations with employee names, recommended salary adjustments, total annual cost, implementation timelines, and communication strategies.

How It Works

  1. 1 Validate compensation data for required fields (title, salary, tenure, department) and data quality
  2. 2 Calculate pay statistics (mean, median, spread, coefficient of variation) for each job role using Python
  3. 3 Identify statistical outliers using z-scores and tenure correlation analysis
  4. 4 Analyze demographic pay gaps with t-tests for statistical significance if data provided
  5. 5 Assess compliance risk against federal, state, and international pay equity regulations
  6. 6 Generate prioritized remediation recommendations with specific adjustments and cost estimates

What You'll Need

  • Compensation spreadsheet in CSV format with employee name/ID, job title, salary, tenure, and department
  • Company context including industry, size, and geographic locations for regulatory assessment
  • Minimum 3-5 employees per role for statistically valid analysis
  • Optional: Demographic data (gender, race) where legal to analyze