How Should Companies Conduct a Gender Pay Gap Analysis

Many companies face the challenge of measuring their gender pay gap, but there is no single agreed method or industry standard to follow. This raises the question: how should companies conduct a gender pay gap analysis that is both meaningful and actionable?

Running Pay Gap Analysis with EvenBetter

Understanding the difference between measuring and analysing

Measuring the gender pay gap is often the first step, but it only shows the surface numbers. Simply presenting data without context does not reveal the underlying reasons behind pay differences. Companies need to break down the numbers in ways that provide real insight. For example, comparing average salaries across the entire workforce can hide important details about roles, experience, and responsibilities. Numbers alone are not insights.

EvenBetter uses AI to Analyse the Gender Pay Gap

Grouping and contextualising for clarity

A useful gender pay gap analysis groups employees by comparable roles and pay levels. This approach helps distinguish between pay equity issues—where men and women in the same role are paid differently—and broader gender pay gaps caused by workforce composition. Adding external market data on salary rates, talent availability, and gender distribution in the industry further sharpens the analysis. This context helps companies understand whether pay differences reflect market realities or internal bias.

Using AI and tools to simplify complexity

Running this kind of detailed analysis in Excel can be time-consuming and prone to error. AI-powered tools like EvenBetter can help HR professionals quickly identify where and why gender pay gaps exist. These tools automate data grouping, compare internal pay with market benchmarks, and highlight specific areas needing attention. This makes the analysis clearer and easier to act on, supporting fair pay decisions and stronger diversity efforts.