Comparing compensation between job classes of equal value

About comparing compensation between job classes of equal value

To identify differences in compensation, employers and pay equity committees must compare the total compensation of predominantly female job classes with that of predominantly male job classes of equal value.

To compare compensation, employers and pay equity committees should use either the equal average method or the equal line method. In some cases, other methods may be used.

As a result of this comparison, some predominantly female job classes may be owed an increase in 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 file an authorization request with the Pay Equity Commissioner to use another method. The employer must then use the comparison method that the Commissioner decides.

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 file a request for authorization with the Pay Equity Commissioner.

Important resources

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