C3 Vantage Points
There are several statistical methods used to examine pay equity. When analyzing compensation, all attempt to achieve the same goal of controlling for group differences. Thus, if the groups are equivalent in all relevant respects, would they (e.g., men and women) be paid the same?
Even when a pay equity analysis comes back citing no statistical differences between groups, organizations must pause to consider if these results reflect a true state of affairs or if inequities are buried deeper within their organizations that an analysis of compensation alone does not reveal.
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