A new pay gap calculator aims to help close the pay gap
The United States has had a federal equal pay law for almost 60 years, and yet some projections estimate that it will be another 30 years before women and men finally earn the same. On Boston’s Equal Pay Day on April 20, a new tool was launched to help businesses comply with the law and close their revenue gaps.
The Employer Pay Gap Calculator, created by Boston University’s Software & Application Innovation Lab (SAIL) for the Boston Women’s Workforce Council (BWWC) and the Boston Mayor’s Office for the Advancement of Women , allows employers to calculate wage gaps between genders and races with just the click of a button.
“Our goal is to get people to do the math and measure their own pay gaps,” says Kim Borman, executive director of BWWC. “That way, employers know if they need to dig deeper into their data.”
Boston’s Equal Pay Day, which symbolizes how far into the New Year Boston-area women must work to earn what men earned the year before, is more than a month later than its equivalent National March 15. But Borman says that doesn’t necessarily mean Boston women are behind their national counterparts.
“National Equal Pay Day is calculated from census data, which is much less accurate than what we get directly from employer payroll systems. Our number is likely to be the correct one,” Borman says. . BWWC uses confidential data from more than 250 employers in the region, all signatories to its 100% Talent Compact, to calculate its figures. On average in 2021, women in the Boston area received 70 cents for every dollar earned by men; people of color, both men and women, received 76 cents for every dollar earned by their white peers.
While these averages provide insight into local trends in pay equity, they do not provide insight into pay gaps for an individual company. The free online calculator can be used by anyone to better understand pay equity in their business. The platform only requires a few pieces of information that employers can collect from their payslips to determine the difference in pay between all working men and women and all white employees and employees of color.
“The tool itself is easy to use and is a great way to understand if you have unintended gender and racial wage gaps because you haven’t been advancing women or people of color at the same rate. than men,” says Borman. Employers can also compare their pay gaps to the average pay gaps of BWWC’s 100% Talent Compact signatories, calculated every two years using SAIL’s secure data collection and analysis platform. SAIL is part of the BU Rafik B. Hariri Institute for Computing and Computational Science & Engineering.
Acknowledging the reality of gender and racial pay gaps is the first step toward achieving pay equity, Borman says, and the Employer Pay Gap Calculator can help companies identify disparities they don’t realize maybe not even count.
“BWWC speaks loudly about the issue of pay equity, so people get involved and understand what’s going on in their own business,” she says. “We know that over time the way companies grow, prosper, retain and recruit people is through pay equity.”
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The tool is available at wagegapcalculator.org/
Provided by Boston University
Quote: New Wage Gap Calculator aims to help close the pay gap (2022, April 19) Retrieved April 19, 2022 from https://phys.org/news/2022-04-wage-gap-aims. html
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