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In this session, Ninande Vermeer from Highberg will explore key methodologies for equal pay analysis, including regression-based approaches like Multiple Linear Regression and Oaxaca-Blinder Decomposition, as well as weighing-based methods such as the Rake method. Learn how these techniques can uncover the root causes of pay gaps and support compliance with legislation like the EU Pay Transparency Directive.
Whether you are comparing gender or other employee groups, this session provides practical insights to help your organization make data-driven decisions on pay equity.
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Key take-aways:
The Rumbold / Highberg Expert Perspective session on Equal Pay Analysis Methods offered a powerful, practice‑oriented deep dive into how organizations can move from reporting gender pay gaps to truly understanding and addressing them.
With regulatory pressure increasing under the EU Pay Transparency Directive, the conversation highlighted not only what is required—but what is important and sometimes urgent for organizations seeking fairness, compliance, and accountability.
Here are the core takeaways:
- Equal Pay methods matter more than ever
Even though these methods are not legally mandated, they are essential for explaining the pay gap and identifying whether differences are due to job architecture, mobility barriers, or potential unfairness (from Meeting Summary). - Not all “uncorrected gaps” are the same
Legal uncorrected gaps differ fundamentally from regression‑based uncorrected gaps. Methods like Oaxaca–Blinder and Rake help create alignment and avoid confusing stakeholders with multiple percentages (from Meeting Summary). - Career frameworks and peer groups are the foundation
Defining who does “equal work” is not optional anymore. A clear remuneration policy and job architecture are crucial to make any Equal Pay analysis valid and interpretable (from Meeting Summary). - Data quality determines analysis quality
Variables like job level, job family, and experience require good data. When perfect data doesn’t exist, transparent use of proxies remains essential (from Meeting Summary). - Transparency beats black‑box analytics
Whether buying a tool, building internally, or outsourcing—organizations must understand the methodology used, especially as regulators increasingly expect clarity (from Meeting Summary).
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