Calculator Inputs
Example Data Table
| Job Level | Reference Avg | Compared Avg | Reference Median | Compared Median | Compared Headcount | Raw Gap |
|---|---|---|---|---|---|---|
| Analyst | USD 62,000 | USD 59,500 | USD 60,500 | USD 58,900 | 18 | 4.03% |
| Manager | USD 94,000 | USD 88,100 | USD 92,000 | USD 86,700 | 12 | 6.28% |
| Director | USD 138,000 | USD 131,500 | USD 136,000 | USD 129,800 | 5 | 4.71% |
Formula Used
1. Raw Mean Gap %
((Reference Average Pay − Compared Average Pay) ÷ Reference Average Pay) × 100
2. Raw Median Gap %
((Reference Median Pay − Compared Median Pay) ÷ Reference Median Pay) × 100
3. Explained Factors Total %
Performance % + Tenure % + Location % + Market %
4. Unexplained Gap %
Raw Gap % − Explained Factors Total %
5. Pay Parity Ratio %
(Compared Pay ÷ Reference Pay) × 100
6. Target Average Pay
Reference Average Pay × (1 − Target Gap %)
7. Per Employee Adjustment
Maximum(Target Average Pay − Compared Average Pay, 0)
8. Annual Remediation Budget
Per Employee Adjustment × Compared Headcount × Coverage %
9. Estimated Post Remediation Average
Compared Average Pay + (Per Employee Adjustment × Coverage %)
10. Compliance Score
A bounded internal risk score. Lower unexplained gaps improve the score. Threshold breaches reduce it. Coverage raises readiness.
How to Use This Calculator
- Enter clear labels for the reference and compared groups.
- Add average and median pay for both groups.
- Enter headcounts for meaningful budget estimates.
- Input explained percentages for performance, tenure, location, and market factors.
- Set your internal threshold and preferred post-remediation target gap.
- Choose the remediation coverage percentage you can realistically fund.
- Submit the form and review the risk status, score, gap measures, and estimated budget.
- Export the result as CSV or PDF for audit support or compensation planning.
Frequently Asked Questions
1. What does this calculator measure?
It estimates raw gaps, explained adjustments, unexplained variance, remediation budgets, and a practical internal review score for compensation parity analysis.
2. Is this a legal compliance determination?
No. It is an internal screening tool. Final compliance decisions require job comparability analysis, jurisdiction rules, counsel review, and documented compensation rationale.
3. Why use both average and median pay?
Average pay shows overall spend differences. Median pay reduces outlier impact. Reviewing both produces a more balanced picture of parity risk.
4. What are explained factors?
They are pay differences supported by documented business reasons, such as performance, tenure, geography, or market premiums.
5. What is remediation coverage?
It is the share of the compared group included in the budget plan. Lower coverage reduces immediate spend, but may leave remaining variance.
6. What does the compliance score mean?
It is a bounded internal readiness score. Higher values suggest lower unexplained gap pressure and better remediation positioning.
7. Can I use this across departments?
Yes. Run separate analyses for comparable job families, levels, or geographies. Mixing unlike roles may distort parity findings.
8. When should I export the results?
Export after validating inputs and assumptions. Keep files with compensation notes, methodology details, and review dates for stronger governance records.