Pay Equity Analysis Skill Skill

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)

Agent Skills: Pay Equity Analysis Skill

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