Skip to main content Site map

Equal Pay Audits

Equal pay audits are important tools that identify pay inequalities and determine whether differences in pay are justifiable, defendable or related to something other than a protected characteristic.

Talk to us

Three-test approach

QCG has developed a three-test approach to equal pay audits. With most equal pay audits concentrating on comparisons of average pay of groups, there are potential risks emerging from the distribution of pay in each group, outliers and other anomalies which are often ignored.

The QCG approach addresses these issues through 3 tests, adding more rigour and reliability to the findings from the audit.


Test 1 – Analysis of average FTE base salaries

The first test involves performing comparative analyses of average pay rates in line with standard Equality and Human Rights Commission guidance and best practice.

The test produces evidence of employee groups whose average pay is different. From this we are able to investigate whether there are any root causes for this (e.g. time in role, performance) and whether or not these constitute valid reasons to justify such differences.


Values in red represent gaps greater than 5% and the instances we would proceed to investigate, as per the guidelines from the Equality and Human Rights Commission.


Test 2 – Dispersion of FTE base salaries

The second test involves a visual assessment intended to identify outliers that merit further investigation. We do this by producing dispersion charts with employee data points being colour coded according to the characteristic we are testing pay equality for.

Again, we investigate the reasons behind the salary position of outliers in order to establish whether or not those factors represent a concern.

Test 3 – Interquartile Ranges

The third and final test involves a statistical analysis of the distribution of pay for different employee groups. This will add rigour to equality assessments by allowing us to establish whether the average position of pay is a result of concentration around a midpoint or aggregation of disperse points.

In the latter scenario, this could raise points for further investigation that potentially fall through the gaps when conducting equal pay assessments limited to the standard recommended approach.


For a discussion on Equal Pay Audits or other Reward Analytics services get in touch here

Talk to us

Enter your details below and we'll be in touch to arrange a call

Featured Insight

“Get back into the office!” – the latest risk to engagement?

Posted on: 30 May 2023

Culture | Employee Experience | Engagement | Return to the workplace

Over the past few years, the world of work has changed almost beyond recognition. Since returning to work after the pandemic, organisations have had a “hokey cokey” approach to flexible working....

Featured Survey

Rail Rolling Stock and Maintenance Roles Pay Survey

The QCG Rail Rolling Stock & Maintenance Roles Pay & Benefits Survey is a specialist annual pay and benefits survey for rail rolling stock and maintenance organisations....

Talk to us

or call us on +44 (0)1908 605000