Comparing compensation

The equal average method

The equal average method may suit small or medium organizations with a simple job hierarchy or that do not have a large number of job classes.

This method aims to compare the average total compensation of all predominantly female and predominantly male job classes within a particular range or value of work bands.

Here are the steps to follow in order to apply the equal average method:

• Create ranges (“bands”) that cover all the possible values of work for the workplace.
• Place job classes of equal or comparable value into the appropriate band based on job evaluation.
• Compare the average total compensation (in dollars per hour) of predominantly female job classes in each band with the average total compensation (in dollars per hour) of predominantly male job classes in that same band or, if there are no male comparators in the band, the appropriate alternate male comparator(s).
• If the female average in the band is lower than the male average in the band, calculate the increase in compensation owed to only those predominantly female job classes whose total compensation falls below the male average in the band.

The equal line method

The equal line method may suit large organizations, and organizations with a complex job hierarchy and/or a large number of job classes.

This method uses regression lines to compare the total compensation of predominantly female and predominantly male job classes.

Here are the steps to follow in order to apply the equal line method:

• Plot all the predominantly female and predominantly male job classes on a chart according to their total compensation in dollars per hour (y-axis) and their value of work (x-axis).
• Create two regression lines: a female regression line using the points plotted for the predominantly female job classes and a male regression line using the points plotted for the predominantly male job classes.
• If the entire female regression line is below the male regression line in the relevant range of job values, calculate the increase in compensation owed to only those predominantly female job classes whose total compensation falls below the male regression line.
• After applying these increases, the two regression lines must coincide.

Other methods

An employer that is conducting the pay equity exercise without a pay equity committee could determine that neither the equal average nor the equal line method can be used. In this case, they must apply to the Pay Equity Commissioner for authorization to use another method that they propose. The employer must then use the comparison method that the Commissioner approves.

A pay equity committee that determines that neither the equal average nor the equal line method can be used may use another method that it considers appropriate and does not need to apply to the Pay Equity Commissioner.

For more information

• Pay Equity Act Legislative Guide
• Request authorization to use a different comparison method