The deadline for the pay equality analysis is approaching!

Even minor differences may raise questions

In recent days, we have passed the halfway point of the deadline set in the revision of the Swiss Gender Equality Act (GlG) for the implementation of an equal pay analysis. There are only a few months left to implement this legal requirement.

On paper, there is no reason to panic. After the deadline (June 30th, 2021), the law will permit another year for the results to be examined and then a third year for disclosure. But can you seriously wait for two years after a pay equity analysis has been carried out to talk about the results? In practice, employers who take this issue to heart will most likely want to take a much quicker route.

The requirements of the Equal Pay Act are fairly straight forward and should be easy to meet at first glance. Companies with 100 or more employees are obliged to carry out an equal pay analysis every four years and to have it verified by an independent body. Employees and shareholders must then be informed of the results of the equal pay analysis. This must rest on a scientific and legally compliant method, with the standard analysis tool provided by the Swiss Confederation (Logib) being the easiest way to do so.

Admittedly, a broad disclosure practice has not yet been established. But on closer examination, some challenges are likely to arise here. In contrast to a broad set of requirements (such as the Confederation’s procurement system), a fixed acceptability hurdle of, say, 5% offers little shelter for the self-declaration by companies. Actually, only where the analysis results in 0% of measurable wage differences, disclosure will raise no further questions. In practice, therefore, only a few companies will be completely free of inconsistencies. Even a relatively good result like 1%-2% wage difference can probably not be successfully communicated to third parties without well-founded justifications.

Providing clarity with log+insights

Building on the regression techniques of the standard analysis tool, we at klingler consultants have therefore extended our toolkit with suitable statistical methods. With our “log+insights” approach, we can identify possible causes for the calculated gender difference, visualise correlations and create function-related evaluations. This may not necessarily lead to “better” results, but undoubtedly to more understandable ones. Contact us today and we will be happy to explain more.