New KPI for Salary Basis Subject area – Unadjusted Pay Gap

Likitha Gowda S-Oracle

In the 25R3 release, we have introduced a new KPI for the HCM – Workforce Rewards – Salary Basis subject area: Unadjusted Pay Gap. This KPI provides insights into the pay disparities.

How can the organizations identify pay inequalities?

The KPI can be analysed across various factors, such as age, length of service, performance, ethnicity and more. The KPI by default highlights the unadjusted pay gap between male and female workers, but custom calculations can be applied to assess the pay gap across other genders available in the application.

The visualization presented below highlights the following (left to right)

1. Provides a high-level overview on the overall unadjusted pay gap between the male and female workers within the organization
2. Details on how the pay disparity differs across various age bands within the organization
3. Within the workers with similar tenure, the unadjusted pay gap can highlight where gender-based pay disparities persist, potentially due to unequal pay progression over time.
4. Ideally, performance should correlate with pay, but the unadjusted pay gap may reveal that high-performing workers of one gender are paid less than high performers of another gender, suggesting that gender might still influence compensation decisions despite performance outcomes.
5. Certain ethnic groups may experience a larger unadjusted pay gap, revealing that pay inequalities are not just gender-based but also influenced by ethnicity.

Salary Basis_Unadjusted Pay Gap.dva