EDGEplus Gender and Intersectional Pay Gap Analysis Methodology Release
In November 2024, the EDGE Certified Foundation published the EDGEplus Unexplained Gender and Intersectional Pay Gap (UGIPG) Analysis V1.3 methodology.
Closing Intersectional Pay Gaps
Pay gaps based on race and ethnicity remain a persistent challenge in labour markets globally, often stemming from systemic discrimination. These disparities can adversely affect the recruitment, retention, and productivity of employees from underrepresented race/ethnic groups. To address this issue effectively, it is recommended to measure, analyze, and implement strategies to close race/ethnicity pay gaps.
A Methodology to Analyze Pay Equity Across Race, Ethnicity, and Gender
The EDGEplus UGIPG methodology is a scientific method that allows organizations to assess whether there are unexplained pay gaps between women and men of different races/ethnicities. Using a linear regression model with Ordinary Least Squares, the EDGEplus UGIPG methodology measures whether an organization has any pay gap which cannot be explained by factors other than the combined effects of gender and race/ethnicity.
It covers all employees in an organization and includes both salary (base salary) and pay (base salary plus bonuses and other cash benefits), which are measured against the following objective and non-discriminatory explanatory variables:
-Variables related to personal characteristics of the employee: gender, tenure, age
-Variables related to the type of job of the employee: responsibility of the role, type of performed function, level of responsibility
This methodology extends the EDGE-compliant Unexplained Gender Pay Gap (UGPG) analysis that is generally applied as part of the preparation for EDGE Certification, to enable a gender and intersectional analysis of pay gaps within certifying organizations by adding the explanatory variable, race/ethnicity.
Find the EDGEplus UGIPG Methodology Here
Organizations looking to analyze pay equity by race/ethnicity, including identifying any unexplained pay gaps between women and men of different races/ethnicities, can find the EDGEplus Unexplained Gender and Intersectional Pay Gap Analysis Methodology here