Launch of Fair-ON-Pay Aware pilot - a new label for small companies
The Fair-ON-Pay Association has developed a method and procedure to measure the “adjusted pay gap” based on the EPIC "Best Practice" model Logib. Companies that go through the rigorous Fair-ON-Pay process can obtain a label and publicly demonstrate that they comply with the Fair-ON-Pay standard. However, this method only applies to companies with at least 100 employees. To put this in perspective, in Switzerland less than 1% of companies (around 5,000) can carry out this type of analysis.
According to the Swiss Federal Statistical Office, the gender pay gap is mainly driven by smaller companies. Aware of this, the Federal Office for Gender Equality has developed a new method for analysing the gender pay gap - Logib Module 2 - specifically for smaller companies. Over the past year, we have received an increasing number of requests from smaller companies that want to be certified and publicly report on what they are doing to reduce the gender pay gap. With our current labels, these companies were left out in the cold.
The Fair-ON-Pay Association is therefore developing a new labelling scheme based on Logib Module 2: Fair-ON-Pay Aware. The paradox of this new method is that it is more complex than Module 1, which is used in larger companies. Defining “work of equal value” is more delicate in a small company (they usually lack structure). That is why module 2 requires performing an analytical job evaluation for all roles in the company. Knowing that smaller companies generally don't employ HR specialists (or HR at all), it is important that this new label accompanies and trains them on equal pay issues. Therefore, to receive the new label, smaller companies must attend an equal pay training and carry out the gender pay gap (and job evaluation) with accredited experts from the association. If the results meet the normative criteria, the Fair-ON-Pay Aware label can be awarded for a period of 4 years, provided that the company submits annual gender pay gap analyses that are quality audited by our experts.
This new label aims to continuously raise awareness of the gender pay gap and professionalise HR practice. By promoting their good practice via a label, the social pressure to finally actively fight the gender pay gap at all company sizes will increase. We are currently in the pilot phase and working with pilot companies to fine-tune the process and normative criteria.