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Together, they form a framework for using AI in compensation that is governed, defensible, and built around people. \nThis post focuses on the first: Explainable AI — and what it means for CHROs, CFOs, and compensation leaders who need faster pay cycles, stronger employee trust, and the ability to stand confidently in front of regulators, boards, and their own workforce.",[1187,1192],{"start":1188,"end":1189,"type":46,"data":1190},52,75,{"link_type":48,"url":1191,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fintentional-ai-eguide",{"start":1193,"end":1194,"type":42},265,312,"article_text$62092d25-28b8-4d17-ae2f-0729e1b47469",{"variation":675,"version":676,"items":1197,"primary":1198,"id":1209,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1199,"text_size":687,"background_color":872},[1200,1203,1206],{"type":681,"text":1201,"spans":1202,"direction":51},"What is Explainable AI in compensation?",[],{"type":36,"text":1204,"spans":1205,"direction":51},"Explainable AI is the ability to show, step by step, how a decision was reached — which data was used, which rules were applied, and what logic connected them. In compensation, this means a manager can look at any pay recommendation and trace it back to its source: the market data, the internal salary range, the performance inputs, the equity targets, and the company policies that shaped the outcome.",[],{"type":36,"text":1207,"spans":1208,"direction":51},"This is different from most general-purpose AI tools, which generate responses based on patterns in large datasets. Those tools are useful for drafting emails or summarizing documents, but they are not built for high-stakes decisions that affect people's livelihoods. When asked to run the same scenario twice, they may produce different results. In compensation, that kind of unpredictability creates real risk.",[],"article_text$af5e874f-e8a0-4fa0-8cae-49de21b271d4",{"variation":675,"version":676,"items":1211,"primary":1212,"id":1227,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1213,"text_size":687,"background_color":688},[1214,1217,1220,1223],{"type":681,"text":1215,"spans":1216,"direction":51},"Why does explainability matter so much for compensation?",[],{"type":36,"text":1218,"spans":1219,"direction":51},"Not only is compensation a major cost center; it's also one of the most heavily regulated areas of any organization. The EU AI Act requires companies to use AI in explainable and auditable ways, with human oversight. Pay transparency laws across the US and Europe require employers to show how ranges are set and how decisions are made. And GDPR shapes how employee data is stored and processed throughout.",[],{"type":36,"text":1221,"spans":1222,"direction":51},"Beyond regulation, there is a practical leadership reality: when a manager has to explain a pay decision to an employee, or when HR faces scrutiny from an auditor, \"AI recommended it\" is not a sufficient answer. Leaders need to be able to explain what data was used, how it was weighted, and how an outcome was reached.",[],{"type":36,"text":1224,"spans":1225,"direction":51},"Explainable AI makes that conversation possible. It gives compensation teams a foundation they can actually work from, rather than a black box they have to work around.",[1226],{"start":31,"end":40,"type":42},"article_text$41ce0ef7-b779-4a7d-9520-c07a7ba384bf",{"variation":675,"version":676,"items":1229,"primary":1230,"id":1258,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1231,"text_size":687,"background_color":688},[1232,1235,1238,1241,1244,1247,1250,1253],{"type":681,"text":1233,"spans":1234,"direction":51},"How does Explainable AI work in practice?",[],{"type":36,"text":1236,"spans":1237,"direction":51},"The key is determinism. Unlike probabilistic AI models that introduce randomness into each output, deterministic AI always produces the same result from the same inputs. Run the same scenario twice and you get the same answer. Every step in the calculation is known, governed, and repeatable.",[],{"type":36,"text":1239,"spans":1240,"direction":51},"In compensation, this means:",[],{"type":837,"text":1242,"spans":1243,"direction":51},"Every pay recommendation is generated from defined, governed formulas rather than inferred from patterns.",[],{"type":837,"text":1245,"spans":1246,"direction":51},"Every formula connects to a specific data source — market benchmarks, internal bands, performance ratings — and that connection is documented.",[],{"type":837,"text":1248,"spans":1249,"direction":51},"Every output can be presented in plain language, so managers can explain it to employees without needing a data scientist in the room.",[],{"type":837,"text":1251,"spans":1252,"direction":51},"Every decision leaves an audit trail that HR, finance, and legal teams can review at any point.",[],{"type":36,"text":1254,"spans":1255,"direction":51},"\nThis is what beqom calls a system of intelligence — not just a place to store compensation data, but a platform that actively applies governed logic to produce recommendations that can be traced end-to-end.",[1256],{"start":1257,"end":766,"type":42},28,"article_text$ed49ca5e-d06b-4a07-a66d-b6ff335b8e7f",{"variation":675,"version":676,"items":1260,"primary":1261,"id":1264,"slice_type":1265,"slice_label":5},[],{"section_id":5,"quote":1262,"description":1263},"\"When someone asks, 'Why did this employee get this number?' you can trace it end-to-end: here's the formula, here's the data it used, and here's where that data came from.\" — Dr. Sébastien Baehni, CTO of beqom.",[],"article_quote$deb0f8ee-6cc8-47a5-bb94-4e5c31fff67b","article_quote",{"variation":675,"version":676,"items":1267,"primary":1268,"id":1285,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1269,"text_size":687,"background_color":688},[1270,1273,1276,1279,1282],{"type":681,"text":1271,"spans":1272,"direction":51},"What's the difference between Explainable AI and black-box AI?",[],{"type":36,"text":1274,"spans":1275,"direction":51},"This is one of the most common questions HR and tech leaders ask when evaluating AI tools for compensation. The difference comes down to traceability.",[],{"type":36,"text":1277,"spans":1278,"direction":51},"With black-box AI, the model takes inputs and produces outputs, but the reasoning in between is opaque. You can see what went in and what came out, but you cannot see how the result was calculated. When an outcome looks wrong — or when an employee or auditor asks why — there is no clear path back through the logic.",[],{"type":36,"text":1280,"spans":1281,"direction":51},"With Explainable AI, the reasoning is part of the output. You can inspect the inputs, the rules, and the formula. You can test whether changing one variable changes the result. You can compare decisions across employees and explain why two people in similar roles received different recommendations.",[],{"type":36,"text":1283,"spans":1284,"direction":51},"This distinction matters especially when compensation decisions are contested. Pay equity reviews, promotion cycles, and annual merit increases all carry the potential for challenge. Explainable AI gives organizations the confidence to handle those challenges with evidence rather than approximation.",[],"article_text$3e5c9605-fcbe-47d3-8fab-a0e8303bcc68",{"variation":675,"version":676,"items":1287,"primary":1288,"id":1302,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1289,"text_size":687,"background_color":688},[1290,1293,1296,1299],{"type":681,"text":1291,"spans":1292,"direction":51},"Does Explainable AI slow down the compensation process?",[],{"type":36,"text":1294,"spans":1295,"direction":51},"This is a fair concern, and the short answer is no — done well, it should speed things up. The assumption is that auditability requires extra steps, extra documentation, or extra review cycles. In practice, when AI is built with explainability from the ground up, the audit trail is a natural by-product of the process rather than an add-on.",[],{"type":36,"text":1297,"spans":1298,"direction":51},"Managers spend less time manually assembling data from multiple sources, because the system pulls it together for them. HR teams spend less time responding to one-off questions about how a number was calculated, because the logic is already documented. And compliance reviews become faster because the evidence is already organized and accessible.",[],{"type":36,"text":1300,"spans":1301,"direction":51},"The goal of Explainable AI is to reduce friction, not add it.",[],"article_text$0f6b2fe6-d7dc-4b60-bfdf-34b1be7baf6e",{"variation":675,"version":676,"items":1304,"primary":1305,"id":1328,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1306,"text_size":687,"background_color":688},[1307,1310,1313,1316,1325],{"type":681,"text":1308,"spans":1309,"direction":51},"How does Explainable AI connect to employee trust?",[],{"type":36,"text":1311,"spans":1312,"direction":51},"Pay is personal. When people feel their compensation is decided by an invisible algorithm they cannot question or understand, it erodes trust — even if the outcomes are fair. When they know that every decision is based on defined, documented logic that a manager can explain in a conversation, it builds confidence in the process.",[],{"type":36,"text":1314,"spans":1315,"direction":51},"This is why explainability is foundational to the employee experience in compensation, and not just a compliance exercise. Organizations that can explain their pay decisions clearly — to employees, to managers, to auditors, and to boards — are building a culture of pay transparency that will become increasingly important as regulations tighten and workforce expectations rise.\n",[],{"type":36,"text":1317,"spans":1318,"direction":51},"beqom's Compensation and Culture Report found that 56% of respondents said AI features are \"very important\" for automating compensation procedures. But that interest is only valuable if the AI produces outcomes that people can understand and trust. Explainability is what bridges the gap between powerful AI and practical, human-centered compensation management.",[1319,1323],{"start":31,"end":1320,"type":46,"data":1321},39,{"link_type":48,"url":1322,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fbeqom-2026-compensation-culture-report-us",{"start":31,"end":1324,"type":42},148,{"type":36,"text":1326,"spans":1327,"direction":51},"",[],"article_text$bb08a463-1e89-4051-9bd6-97c2595b862d",{"variation":675,"version":676,"items":1330,"primary":1331,"id":1348,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1332,"text_size":687,"background_color":688},[1333,1336,1339,1345],{"type":681,"text":1334,"spans":1335,"direction":51},"Building explainability into your compensation strategy",[],{"type":36,"text":1337,"spans":1338,"direction":51},"Explainability is not a feature you add to an existing AI model — it is a design principle that has to be built in from the start. That means choosing tools that operate on governed data, apply defined rules, and produce outputs that can be documented and reviewed.",[],{"type":36,"text":1340,"spans":1341,"direction":51},"It also means being clear about where AI fits in your process. Explainable AI is most powerful as a decision-support layer — one that prepares managers with the right information, surfaces patterns and equity signals, and generates recommendations that humans then review and approve. It is not a replacement for human judgment; it makes human judgment more informed, consistent, and defensible.",[1342],{"start":1343,"end":1344,"type":42},284,395,{"type":36,"text":1346,"spans":1347,"direction":51},"beqom's compensation platform is built on exactly these principles. By combining a single, governed system of record with deterministic AI models and rule-based logic, beqom gives compensation teams the ability to move faster, explain every outcome, and stay confidently ahead of regulatory demands.",[],"article_text$992fa376-ed3a-4e17-9adb-74e4e7970cf0",{"variation":675,"version":676,"items":1350,"primary":1351,"id":1361,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1352,"text_size":687,"background_color":872},[1353],{"type":36,"text":1354,"spans":1355,"direction":51},"If you are ready to bring explainability to your compensation decisions, book a demo with beqom and see what Intentional AI looks like in practice.",[1356],{"start":1357,"end":1358,"type":46,"data":1359},73,95,{"link_type":48,"url":1360,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fbook-a-demo","article_text$3c8e94ab-47c2-4349-a566-6d728863a37f","Why Explainable AI matters in compensation | beqom","Learn how Explainable AI makes compensation decisions consistent, auditable, and defensible — and why it's essential for HR and C-suite leaders.",{"dimensions":1365,"alt":5,"copyright":5,"url":1366,"id":1367,"edit":1368},{"width":25,"height":26},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002Fahhl17K9tuLqEO1S_aiwhitepaperipadholdinghands3-1-.png?auto=format,compress&rect=0,668,1844,968&w=2400&h=1260","ahhl17K9tuLqEO1S",{"x":31,"y":1369,"zoom":32,"background":33},668,"Why Explainable AI is the future of compensation management","Compensation decisions affect every person in your organization. Discover how Explainable AI gives HR and finance leaders the transparency they need to make pay decisions they can stand behind.","Can you explain every pay decision your AI makes?","If the answer is no, it's time to rethink your approach. Here's what Explainable AI in compensation actually looks like.",{"id":1375,"uid":1376,"url":1377,"type":1058,"href":1378,"tags":1379,"first_publication_date":1380,"last_publication_date":1381,"slugs":1382,"linked_documents":1384,"lang":14,"alternate_languages":1385,"data":1390},"Z1GKHBMAAB8AT4t2","unadjusted-and-adjusted-pay-gap","\u002Fblog\u002Funadjusted-and-adjusted-pay-gap","https:\u002F\u002Fbeqom-com.cdn.prismic.io\u002Fapi\u002Fv2\u002Fdocuments\u002Fsearch?ref=ahlPJBEAAC4AXlYK&q=%5B%5B%3Ad+%3D+at%28document.id%2C+%22Z1GKHBMAAB8AT4t2%22%29+%5D%5D",[],"2025-01-17T09:47:27+0000","2026-05-14T15:05:46+0000",[1383],"the-uncontrolled-pay-gap-and-the-controlled-pay-gap",[],[1386,1388],{"id":1387,"type":1058,"lang":18,"uid":1376},"aDSvYhEAACN-vHYE",{"id":1389,"type":1058,"lang":21,"uid":1376},"aZhi0hEAACQALS83",{"title":1391,"excerpt":1392,"written_by":1397,"reviewed_by":1418,"publication_date":1419,"date_to_order_by":1420,"last_modified_date":1420,"last_modified_date_description":1421,"time_to_read":1113,"blog_post_gating":1114,"button_label":5,"featured_image":1422,"products":1434,"topics":1445,"slices":1455,"meta_title":1721,"meta_description":1722,"meta_image":1723,"seo_index":53,"seo_follow":53,"og_title":1724,"og_description":1725,"twitter_title":1726,"twitter_description":1727,"do_not_display_in_list_of_blogs":92},"Navigating Adjusted vs. Unadjusted Pay Gaps for EU Reporting",[1393],{"type":36,"text":1394,"spans":1395,"direction":51},"We often talk about the pay gap—but in reality, there’s more than one type of pay gap. Learn about the two pay gap types (adjusted and unadjusted), and what reporting is required by the EU Directive.",[1396],{"start":740,"end":818,"type":813},{"id":1398,"type":1088,"tags":1399,"lang":14,"slug":1400,"first_publication_date":1401,"last_publication_date":1402,"uid":1400,"url":1403,"data":1404,"link_type":90,"key":1417,"isBroken":92},"Zh_1MBAAABAHOw_X",[],"gudrun-thorgeirsdottir","2024-04-17T16:13:39+0000","2025-12-04T11:47:33+0000","\u002Fauthors\u002Fgudrun-thorgeirsdottir",{"name":1405,"author_photo":1406,"job_title":1414,"company_name":1103,"company_url":1415,"is_a_former_beqom_employee":92},"Gudrun Thorgeirsdottir",{"dimensions":1407,"alt":1410,"copyright":5,"url":1411,"id":1412,"edit":1413},{"width":1408,"height":1409},955,1337,"A photo of Gudrun Þorgeirsdottir","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZiwMpt3JpQ5PTN2M_ETPhoto_Gudrun.jpg?auto=format,compress","ZiwMpt3JpQ5PTN2M",{"x":31,"y":31,"zoom":32,"background":33},"Chief Business Development Officer",{"link_type":48,"key":1416,"url":1106,"target":1107},"6822f05d-ec83-495c-8050-1819627ed217","3d4b1534-8d04-4ec3-95f0-9986b487e9c1",{"link_type":90},"2025-01-17T09:00:00+0000","2026-05-13",[],{"dimensions":1423,"alt":1424,"copyright":5,"url":1425,"id":1426,"edit":1427,"preview":1429},{"width":624,"height":625},"Graphic showing two people with graphic arch element in background","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ31lmpbqstJ99JH1_beqom_UnadjustedvsAdjustedBlog_PrismicBanner.jpg?auto=format%2Ccompress&rect=84%2C0%2C2232%2C1260&w=1240&h=700","Z31lmpbqstJ99JH1",{"x":1428,"y":31,"zoom":32,"background":33},84,{"dimensions":1430,"alt":5,"copyright":5,"url":1431,"id":1426,"edit":1432},{"width":632,"height":633},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ31lmpbqstJ99JH1_beqom_UnadjustedvsAdjustedBlog_PrismicBanner.jpg?auto=format%2Ccompress&rect=81%2C0%2C2239%2C1260&w=828&h=466",{"x":1433,"y":31,"zoom":32,"background":33},81,[1435],{"product":1436},{"id":128,"type":108,"tags":1437,"lang":14,"slug":130,"first_publication_date":131,"last_publication_date":132,"uid":133,"url":134,"data":1438,"link_type":90,"key":1444,"isBroken":92},[],{"title":993,"icon":1439,"meta_title":1442,"meta_description":1443},{"dimensions":1440,"alt":966,"copyright":5,"url":967,"id":968,"edit":1441},{"width":965,"height":645},{"x":31,"y":31,"zoom":32,"background":33},"PayAnalytics by beqom - Pay Equity Software","Pay and workplace equity software by beqom empowers accurate compensation decisions and a culture founded on fairness. Data-driven. Transparent. Always-on.","943eaf13-9e41-4067-8563-d29e74e0ebcf",[1446],{"topic":1447},{"id":1448,"type":1157,"tags":1449,"lang":14,"slug":1450,"first_publication_date":1451,"last_publication_date":1452,"uid":1450,"data":1453,"link_type":90,"key":1454,"isBroken":92},"ZiYjiBAAANKqVj1y",[],"pay-equity","2024-04-22T08:45:02+0000","2025-10-14T14:43:46+0000",{"title":126,"plural_title":126},"4101677e-9be1-47a2-90c8-481635ddc8c7",[1456,1470,1493,1507,1521,1533,1541,1549,1562,1573,1602,1644,1661,1681,1710],{"variation":675,"version":676,"items":1457,"primary":1458,"id":1469,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1459,"text_size":687,"background_color":688},[1460,1463,1466],{"type":36,"text":1461,"spans":1462,"direction":51},"Perhaps the most frequently cited global pay equity statistic is this: a woman on average earns about 80 cents for every dollar a man earns. This popular pay gap statistic is accurate—but it doesn’t tell the whole story. And it’s not the only way to measure a pay gap.",[],{"type":36,"text":1464,"spans":1465,"direction":51},"There are two types of pay gaps: the unadjusted or uncontrolled pay gap, and the adjusted or controlled pay gap. These measurements are used at different times, and they tell you different things about your workplace.",[],{"type":36,"text":1467,"spans":1468,"direction":51},"In this article, we explain the difference between the adjusted and unadjusted pay gaps, talk about when to use each one, and explain how to calculate the gender pay gap.",[],"article_text$06d7ecbe-ad68-4edd-b1be-15756f2b4405",{"variation":675,"version":676,"items":1471,"primary":1472,"id":1492,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1473,"text_size":687,"background_color":872},[1474,1477,1480,1483,1486,1489],{"type":681,"text":1475,"spans":1476,"direction":51},"The uncontrolled pay gap and the controlled pay gap",[],{"type":36,"text":1478,"spans":1479,"direction":51},"The main difference between the unadjusted and adjusted pay gap measures is the information they consider. The unadjusted (uncontrolled) pay gap only considers average pay, and it looks at the difference between the average pay for each gender. This is the simpler of the two measures. The mathematical calculation is straightforward and can be done quite quickly.",[],{"type":36,"text":1481,"spans":1482,"direction":51},"That eighty-cents-on-the-dollar statistic? That’s an unadjusted (uncontrolled) pay gap measurement.",[],{"type":36,"text":1484,"spans":1485,"direction":51},"The adjusted (controlled) pay gap considers t other factors that can influence pay, like experience, education, and workplace location. For example, an organization’s female workforce might have less experience on average, and thus be paid less. ",[],{"type":36,"text":1487,"spans":1488,"direction":51},"This may lead to a relatively high unadjusted pay gap but a low adjusted pay gap. In other words, the difference in pay here isn’t due to bias or discrimination, but other factors. To improve pay equity overall, the organization may ask what it can do to reach parity across genders in higher-paying roles, which would narrow the unadjusted pay gap.",[],{"type":36,"text":1490,"spans":1491,"direction":51},"Calculating the adjusted pay gap is much more complex. It requires a mathematical process called regression analysis.",[],"article_text$26bc5def-44d5-4590-b812-f74173094975",{"variation":675,"version":676,"items":1494,"primary":1495,"id":1505,"slice_type":1506,"slice_label":5},[],{"section_id":5,"image":1496,"caption":1504},{"dimensions":1497,"alt":1500,"copyright":5,"url":1501,"id":1502,"edit":1503},{"width":1498,"height":1499},5560,2520,"Graphic showing the difference between adjusted pay gap and unadjusted pay gap.","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ4oj8ZbqstJ99jnL_unadjustedvsadjusted.jpg?auto=format,compress","Z4oj8ZbqstJ99jnL",{"x":31,"y":31,"zoom":32,"background":33},[],"article_image$6b543137-2aca-46e0-8827-7753cfaf904e","article_image",{"variation":675,"version":676,"items":1508,"primary":1509,"id":1520,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1510,"text_size":687,"background_color":688},[1511,1514,1517],{"type":681,"text":1512,"spans":1513,"direction":51},"Regression analysis: Calculating your adjusted pay gap",[],{"type":36,"text":1515,"spans":1516,"direction":51},"Regression analysis involves a series of regression equations. Specifically, PayAnalytics by beqom uses what’s known as log-linear regression—the industry standard for pay equity research, regulation, and software development.",[],{"type":36,"text":1518,"spans":1519,"direction":51},"A log-linear regression equation looks like this:",[],"article_text$76837238-271d-4ab7-8999-6e15847e0098",{"variation":675,"version":676,"items":1522,"primary":1523,"id":1532,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1524,"text_size":687,"background_color":1531},[1525],{"type":36,"text":1526,"spans":1527,"direction":51},"log(Salary) = Intercept + β1  Gender + β2  Education +  β3 * Experience + …. + error.",[1528],{"start":1529,"end":1530,"type":813},29,42,"Beige","article_text$eacc9deb-adeb-48d9-8738-8cc0686c9308",{"variation":675,"version":676,"items":1534,"primary":1535,"id":1540,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1536,"text_size":687,"background_color":688},[1537],{"type":36,"text":1538,"spans":1539,"direction":51},"Here, β is the regression coefficient, and it explains the influence of each variable. For example, a regression coefficient of 0.03 for education would mean that each additional educational level contributes to a 3% increase in pay. ",[],"article_text$6bfb2419-e34d-435c-b517-48295bfcad67",{"variation":675,"version":676,"items":1542,"primary":1543,"id":1548,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1544,"text_size":687,"background_color":688},[1545],{"type":36,"text":1546,"spans":1547,"direction":51},"A regression analysis also gives us a p-value, which tells us how likely it is that this correspondence found by the regression equation—more education means more pay—is just due to random chance. A low p-value (below 0.05 or 0.1) means the result is “statistically significant,” which means that the influence we are seeing is real.",[],"article_text$070abce7-915d-4878-a4c7-c18d80a359b6",{"variation":675,"version":676,"items":1550,"primary":1551,"id":1561,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1552,"text_size":687,"background_color":1560},[1553],{"type":36,"text":1554,"spans":1555,"direction":51},"In beqom's Pay Equity & Transparency tool, you get these calculations in just a few clicks. To learn more about how our pay equity solution can support your organization or to see a demo, drop us a line.",[1556],{"start":1557,"end":1558,"type":46,"data":1559},188,202,{"link_type":48,"url":1360,"target":50},"Red","article_text$9124b5ad-889f-4b76-a9d0-2ad1fc39ef26",{"variation":675,"version":676,"items":1563,"primary":1564,"id":1572,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1565,"text_size":687,"background_color":688},[1566,1569],{"type":36,"text":1567,"spans":1568,"direction":51},"At the same time, the analysis considers all of these factors in relationship to gender – or whatever demographic category you want to look at. At the end of your regression analysis, you will see the factors that influence pay at your organization. After taking all those factors into consideration, it will become clear if there is a demographic pay gap.",[],{"type":36,"text":1570,"spans":1571,"direction":51},"The beauty of log-linear regression is that you can pick the factors that are important to your organization. For instance, if your industry makes heavy use of professional certifications and employees with more certifications should be compensated more, you can include certification level as a factor in regression analysis.",[],"article_text$2e8625da-9434-4031-a2e9-d8fe853526da",{"variation":675,"version":676,"items":1574,"primary":1575,"id":1601,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1576,"text_size":687,"background_color":688},[1577,1580,1592],{"type":728,"text":1578,"spans":1579,"direction":51},"Whose work are we comparing?",[],{"type":36,"text":1581,"spans":1582,"direction":51},"Regression analysis requires job classification, or breaking your workforce down into job roles that are analytically meaningful and where similar qualities are valued. For instance, engineering jobs and sales jobs might require different educational levels. For employers covered under the EU Pay Transparency Directive, specific job classification practices are required—see our article on defining categories of workers.",[1583,1587],{"start":1257,"end":1584,"type":46,"data":1585},47,{"link_type":48,"url":1586,"target":1107},"https:\u002F\u002Fwww.payanalytics.com\u002Fis\u002Fjob-classification-three-common-approaches-ebook",{"start":1588,"end":1589,"type":46,"data":1590},391,422,{"link_type":48,"url":1591,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Fdefining-categories-of-workers",{"type":36,"text":1593,"spans":1594,"direction":51},"Another consideration is equal pay for work of equal value. Traditionally, pay equity was thought about in terms of equal pay for equal work.\nNow, it’s more common to consider equal pay for work of equal value. This is because one gender might be dominant in certain job roles, even though the roles themselves might make equal contributions to the organization, and might be similar in terms of employees’ skills, education, and responsibility.\n",[1595,1598],{"start":1596,"end":1597,"type":42},116,140,{"start":1599,"end":1600,"type":42},176,209,"article_text$ebb48636-ed1f-4b08-b0d7-9b7290fc2c75",{"variation":675,"version":676,"items":1603,"primary":1604,"id":1643,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1605,"text_size":687,"background_color":688},[1606,1609,1612,1622,1634,1640],{"type":681,"text":1607,"spans":1608,"direction":51},"Reporting for the EU Pay Transparency Directive",[],{"type":36,"text":1610,"spans":1611,"direction":51},"The Directive requires employers to report data related to the gender pay gap and general demographics. Most of this pay gap data will be unadjusted. However, an adjusted measurement may be critical in determining your organization’s compliance.",[],{"type":36,"text":1613,"spans":1614,"direction":51},"While the final legislation may vary a little by country—see our EU Directive transposition activity page for details and nuances—all countries will require the following: an unadjusted measurement of the overall pay gap, plus eight more specific calculations. ",[1615,1620],{"start":1616,"end":1617,"type":46,"data":1618},64,100,{"link_type":48,"url":1619,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Feu-pay-transparency-directive-transposition-by-country",{"start":1621,"end":694,"type":42},172,{"type":36,"text":1623,"spans":1624,"direction":51},"These calculations include breakdowns by categories of workers and by quartile pay bands, median pay gap measurements, data about variable compensation, and data on raises following leave. (Article 9 of the EU Directive)   ",[1625,1629],{"start":1626,"end":1627,"type":46,"data":1628},40,62,{"link_type":48,"url":1591,"target":1107},{"start":1630,"end":1631,"type":46,"data":1632},206,219,{"link_type":48,"url":1633,"target":1107},"https:\u002F\u002Feur-lex.europa.eu\u002Feli\u002Fdir\u002F2023\u002F970\u002Foj\u002Feng",{"type":36,"text":1635,"spans":1636,"direction":51},"If the unadjusted measurement of the overall pay gap is 5% or greater, employers will need to provide an adjusted pay gap measurement. This measurement should account for objective, gender-neutral factors like job roles and experience.",[1637],{"start":1638,"end":1639,"type":42},94,133,{"type":36,"text":1641,"spans":1642,"direction":51},"If the adjusted pay gap is still 5% or greater, then employers will need to take corrective action in a short time frame (six months), or conduct a joint pay assessment and generate a gender action plan to close the gap. (Article 10) ",[],"article_text$726ad907-17a3-4329-95f0-4091235435fc",{"variation":675,"version":676,"items":1645,"primary":1646,"id":1660,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1647,"text_size":871,"background_color":872},[1648],{"type":36,"text":1649,"spans":1650,"direction":51},"Download our free eGuide for more information about the EU Directive: pay equity reporting, pay transparency measures, and how to prepare.  \nTo find out more on the laws in place where your organization operates, please see our local requirements page.",[1651,1655],{"start":31,"end":1652,"type":46,"data":1653},24,{"link_type":48,"url":1654,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fa-guide-to-the-eu-pay-transparency-directive",{"start":1656,"end":1657,"type":46,"data":1658},228,246,{"link_type":48,"url":1659,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Flocal-requirements","article_text$d060352a-9975-4af0-bfa2-9285ec84e4fd",{"variation":675,"version":676,"items":1662,"primary":1663,"id":1680,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1664,"text_size":687,"background_color":688},[1665,1672],{"type":728,"text":1666,"spans":1667,"direction":51},"Closing a pay gap",[1668,1671],{"start":31,"end":1669,"type":724,"data":1670},17,{"label":761},{"start":31,"end":1669,"type":42},{"type":36,"text":1673,"spans":1674,"direction":51},"Regardless of your market and its reporting requirements, both measurements are important if you want to close or narrow a pay gap.\nIn this case, we advise organizations to start with the unadjusted pay gap—the big picture of any gender discrepancy in pay. Even a small pay gap can mean that there is bias within your organization’s pay structure.  After you’ve planned your response to the unadjusted pay gap, you can then close the adjusted gap.",[1675,1677],{"start":1676,"end":1630,"type":42},173,{"start":1678,"end":1679,"type":42},419,446,"article_text$d44d1926-d1e3-4844-b2e6-ad222fe6fb9e",{"variation":675,"version":676,"items":1682,"primary":1683,"id":1709,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1684,"text_size":687,"background_color":688},[1685,1688,1694,1697,1700,1703,1706],{"type":681,"text":1686,"spans":1687,"direction":51},"How PayAnalytics by beqom can help",[],{"type":36,"text":1689,"spans":1690,"direction":51},"Decades ago, a regression analysis involved hiring a consultant or specialist to solve equations one math problem at a time. PayAnalytics by beqom made a technological breakthrough automating the pay equity analysis process. We deliver log-linear regression calculations with just one click—and present them in a way that is easy to understand.",[1691],{"start":1692,"end":1693,"type":42},181,223,{"type":36,"text":1695,"spans":1696,"direction":51},"You’ll see your unadjusted pay gap, your adjusted pay gap, and the factors that influence pay. You can then break down the data in whatever way you need, including worker categories and pay bands.",[],{"type":36,"text":1698,"spans":1699,"direction":51},"Our software solution also provides:",[],{"type":837,"text":1701,"spans":1702,"direction":51},"Streamlined reporting for many countries—generate compliance-ready reports at the click of a button.",[],{"type":837,"text":1704,"spans":1705,"direction":51}," An industry-leading workplace equity tool—see where your pay gaps are coming from and how to close them.",[],{"type":837,"text":1707,"spans":1708,"direction":51}," A compensation assistant that makes sure each compensation decision preserves pay equity—protect the progress you’ve made.",[],"article_text$5371066b-8a96-4066-9935-7f88f8bd6a52",{"variation":675,"version":676,"items":1711,"primary":1712,"id":1720,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1713,"text_size":871,"background_color":872},[1714],{"type":36,"text":1715,"spans":1716,"direction":51},"Please contact us to learn more about how our Pay Equity & Transparency tool can help your organization.",[1717],{"start":1718,"end":1669,"type":46,"data":1719},7,{"link_type":48,"url":870,"target":1107},"article_text$cb4c6e7d-d1e1-48da-b1e3-cfe26ab19950","Adjusted vs. Unadjusted Pay Gaps for EU Reporting | beqom","This article describes and compares the two types of pay gaps: the unadjusted or uncontrolled pay gap and the adjusted or controlled pay gap.",{},"Unadjusted vs. Adjusted Pay Gap","Discover the difference between the two types of pay gaps: the unadjusted pay gap and the adjusted pay gap.","The two types of pay gap","Learn more about the two types of pay gaps to calculate in your pay equity project: the unadjusted or uncontrolled pay gap and the adjusted or controlled pay gap.",{"id":1729,"uid":1730,"url":1731,"type":1058,"href":1732,"tags":1733,"first_publication_date":1734,"last_publication_date":1735,"slugs":1736,"linked_documents":1738,"lang":14,"alternate_languages":1739,"data":1744},"aeuTpxYAACoAJ815","defining-categories-of-workers","\u002Fblog\u002Fdefining-categories-of-workers","https:\u002F\u002Fbeqom-com.cdn.prismic.io\u002Fapi\u002Fv2\u002Fdocuments\u002Fsearch?ref=ahlPJBEAAC4AXlYK&q=%5B%5B%3Ad+%3D+at%28document.id%2C+%22aeuTpxYAACoAJ815%22%29+%5D%5D",[],"2026-04-24T16:18:00+0000","2026-04-24T17:06:36+0000",[1737],"best-practices-for-defining-categories-of-workers",[],[1740,1742],{"id":1741,"type":1058,"lang":18,"uid":1730},"agLonRYAAJuaTWt-",{"id":1743,"type":1058,"lang":21,"uid":1730},"agLonhYAACoATWuC",{"title":1745,"excerpt":1746,"written_by":1750,"reviewed_by":1758,"publication_date":1759,"date_to_order_by":1760,"last_modified_date":5,"last_modified_date_description":1761,"time_to_read":1762,"blog_post_gating":1114,"button_label":5,"featured_image":1763,"products":1773,"topics":1784,"slices":1790,"meta_title":2041,"meta_description":2042,"meta_image":2043,"seo_index":53,"seo_follow":53,"og_title":2047,"og_description":2048,"twitter_title":2049,"twitter_description":2050,"do_not_display_in_list_of_blogs":92},"Defining Categories of Workers Ahead of the EU Pay Transparency Directive",[1747],{"type":36,"text":1748,"spans":1749,"direction":51},"Ensure compliance with the EU Pay Transparency Directive with our guide to defining worker categories—designed to build objective, unbiased, and defensible pay structures.",[],{"id":1398,"type":1088,"tags":1751,"lang":14,"slug":1400,"first_publication_date":1401,"last_publication_date":1402,"uid":1400,"url":1403,"data":1752,"link_type":90,"key":1757,"isBroken":92},[],{"name":1405,"author_photo":1753,"job_title":1414,"company_name":1103,"company_url":1756,"is_a_former_beqom_employee":92},{"dimensions":1754,"alt":1410,"copyright":5,"url":1411,"id":1412,"edit":1755},{"width":1408,"height":1409},{"x":31,"y":31,"zoom":32,"background":33},{"link_type":48,"key":1416,"url":1106,"target":1107},"d5f7c96c-f2cc-4b68-9b61-2120314f7cdb",{"link_type":90},"2026-04-24T07:59:00+0000","2026-04-24",[],6,{"dimensions":1764,"alt":1765,"copyright":5,"url":1766,"id":1767,"edit":1768,"preview":1769},{"width":624,"height":625},"Employees in the office at a computer","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FaeuT4sBOoF08xST4_2.jpeg?auto=format,compress&rect=8,0,1360,768&w=1240&h=700","aeuT4sBOoF08xST4",{"x":759,"y":31,"zoom":32,"background":33},{"dimensions":1770,"alt":1765,"copyright":5,"url":1771,"id":1767,"edit":1772},{"width":632,"height":633},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FaeuT4sBOoF08xST4_2.jpeg?auto=format,compress&rect=6,0,1365,768&w=828&h=466",{"x":1762,"y":31,"zoom":32,"background":33},[1774,1782],{"product":1775},{"id":128,"type":108,"tags":1776,"lang":14,"slug":130,"first_publication_date":131,"last_publication_date":132,"uid":133,"url":134,"data":1777,"link_type":90,"key":1781,"isBroken":92},[],{"title":993,"icon":1778,"meta_title":1442,"meta_description":1443},{"dimensions":1779,"alt":966,"copyright":5,"url":967,"id":968,"edit":1780},{"width":965,"height":645},{"x":31,"y":31,"zoom":32,"background":33},"bd457c6f-fb6d-4569-8205-617cb364418e",{"product":1783},{"link_type":90},[1785],{"topic":1786},{"id":1448,"type":1157,"tags":1787,"lang":14,"slug":1450,"first_publication_date":1451,"last_publication_date":1452,"uid":1450,"data":1788,"link_type":90,"key":1789,"isBroken":92},[],{"title":126,"plural_title":126},"f93825dd-9b7c-4145-b989-b54813ca51f5",[1791,1806,1812,1825,1850,1862,1879,1953,1966,1992,2005,2031],{"variation":675,"version":676,"items":1792,"primary":1793,"id":1805,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1794,"text_size":687,"background_color":688},[1795,1802],{"type":36,"text":1796,"spans":1797,"direction":51},"The concept of worker categories is woven throughout the EU Pay Transparency Directive. We see it in Article 7, granting employees the right to information about their own pay, and the average pay for employees doing the same work or work of equal value. We also see it in Article 9, requiring employers to report on “the gender pay gap between workers by categories of workers.” ",[1798],{"start":1799,"end":772,"type":46,"data":1800},101,{"link_type":48,"url":1801,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Feu-pay-transparency-directive-right-to-request-pay-information?utm_campaign=34198599-launch-pet-2026&utm_content=371930443&utm_medium=social&utm_source=linkedin&hss_channel=lcp-3478973",{"type":36,"text":1803,"spans":1804,"direction":51},"Here’s the definition, from Article 3(h):",[],"article_text$e5ec5ed4-04e4-49b8-94f4-eb3d882b4ca6",{"variation":675,"version":676,"items":1807,"primary":1808,"id":1811,"slice_type":1265,"slice_label":5},[],{"section_id":5,"quote":1809,"description":1810},"Category of workers’ means workers performing the same work or work of equal value grouped in a non-arbitrary manner based on the non-discriminatory and objective gender-neutral criteria referred to in Article 4(4)…",[],"article_quote$c680673f-becd-45bf-91cd-d22f60681aa7",{"variation":675,"version":676,"items":1813,"primary":1814,"id":1824,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1815,"text_size":687,"background_color":688},[1816,1819],{"type":36,"text":1817,"spans":1818,"direction":51},"Article 4(4) includes the criteria:",[],{"type":36,"text":1820,"spans":1821,"direction":51},"\"… Those criteria shall not be based directly or indirectly on workers’ sex. They shall include skills, effort, responsibility and working conditions, and, if appropriate, any other factors which are relevant to the specific job or position. They shall be applied in an objective gender-neutral manner, excluding any direct or indirect discrimination based on sex. In particular, relevant soft skills shall not be undervalued.\"",[1822],{"start":31,"end":1823,"type":813},427,"article_text$acc3e022-8c32-49ae-8c00-fdf5480336b0",{"variation":675,"version":676,"items":1826,"primary":1827,"id":1849,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1828,"text_size":687,"background_color":688},[1829,1834,1837,1840,1843,1846],{"type":36,"text":1830,"spans":1831,"direction":51},"In short, defining worker categories means considering how each job role adds value to the organization through:",[1832],{"start":31,"end":1833,"type":42},112,{"type":837,"text":1835,"spans":1836,"direction":51},"The skills it requires.",[],{"type":837,"text":1838,"spans":1839,"direction":51},"The effort it demands.",[],{"type":837,"text":1841,"spans":1842,"direction":51},"The responsibility it involves.",[],{"type":837,"text":1844,"spans":1845,"direction":51},"The working conditions it entails.",[],{"type":36,"text":1847,"spans":1848,"direction":51},"And then grouping like with like.",[],"article_text$f1e7035b-94b1-4bfe-b381-def5a40cce20",{"variation":675,"version":676,"items":1851,"primary":1852,"id":1861,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1853,"text_size":871,"background_color":872},[1854],{"type":36,"text":1855,"spans":1856,"direction":51},"For more information about the Directive and its requirements, download our eGuide to the EU Pay Transparency Directive.",[1857],{"start":1858,"end":1859,"type":46,"data":1860},76,119,{"link_type":48,"url":1654,"target":1107},"article_text$1bcf5768-d032-4cb2-8687-b80d9db2a678",{"variation":675,"version":676,"items":1863,"primary":1864,"id":1878,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1865,"text_size":687,"background_color":688},[1866,1869,1875],{"type":36,"text":1867,"spans":1868,"direction":51},"Mapping this out for every role in your organization is a sizable task. But this requirement is at the heart of the Directive. By requiring employers to define worker categories, the Directive is asking us to think critically about our pay structures, and make sure they are as unbiased and objective as possible. ",[],{"type":36,"text":1870,"spans":1871,"direction":51},"And this shift is having an impact on employers’ practices. According to Mercer’s Global Pay Transparency Report, 48% of organizations studied are already using worker categories, job titles, or job levels to measure gender pay gaps. Many organizations (36%) are revisiting their job architecture so that it includes defined worker categories. ",[1872],{"start":1357,"end":1833,"type":46,"data":1873},{"link_type":48,"url":1874,"target":1107},"https:\u002F\u002Fwww.mercer.com\u002Finsights\u002Ftotal-rewards\u002Fpay-equity-and-transparency\u002Fglobal-pay-transparency-report\u002F",{"type":36,"text":1876,"spans":1877,"direction":51},"In this article, we’ll discuss some best practices for defining worker categories, direct you to a useful new toolkit, and point out some common pitfalls to avoid.",[],"article_text$71b117d6-ca8b-4d38-b683-c09bae89270d",{"variation":675,"version":676,"items":1880,"primary":1881,"id":1952,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1882,"text_size":687,"background_color":688},[1883,1886,1894,1901,1904,1910,1913,1921,1924,1930,1933,1939,1942,1949],{"type":681,"text":1884,"spans":1885,"direction":51},"Best practices for defining categories of workers",[],{"type":36,"text":1887,"spans":1888,"direction":51},"To simplify this process for employers, the European Institute for Gender Equality (EIGE) published its job evaluation and classification toolkit in late March 2026. This resource walks employers through the process of reviewing each job based on the four main factors (skills, responsibilities, effort, and working conditions) and determining its value to the organization. ",[1889],{"start":1890,"end":1891,"type":46,"data":1892},104,145,{"link_type":48,"url":1893,"target":1107},"https:\u002F\u002Feige.europa.eu\u002Fgender-mainstreaming\u002Ftoolkits\u002Fgender-neutral-job-evaluation",{"type":36,"text":1895,"spans":1896,"direction":51},"The toolkit includes MS Excel templates, checklists, and worksheets to help employers design and document their job categories. We highly recommend the EIGE toolkit, and our simplified job evaluation eGuide will also help you more effectively choose and plan your approach. ",[1897],{"start":1898,"end":1630,"type":46,"data":1899},174,{"link_type":48,"url":1900,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fpaving-the-way-to-equal-pay-with-job",{"type":36,"text":1902,"spans":1903,"direction":51},"The EIGE toolkit is not mandatory, so if you want to design your own approach and documentation, you can do that as well. In either case, here is what worker categories should look like. ",[],{"type":728,"text":1905,"spans":1906,"direction":51},"Based on objective, job-related factors. ",[1907,1909],{"start":31,"end":1125,"type":724,"data":1908},{"label":761},{"start":31,"end":1125,"type":42},{"type":36,"text":1911,"spans":1912,"direction":51},"These include the big four, skills, responsibilities, effort, and working conditions, as well as any other factors unique to the organization or position. ",[],{"type":728,"text":1914,"spans":1915,"direction":51},"Represent work of equal value. ",[1916,1919],{"start":31,"end":1917,"type":724,"data":1918},31,{"label":761},{"start":31,"end":1920,"type":42},30,{"type":36,"text":1922,"spans":1923,"direction":51},"All of your employees are necessary to the organization, so trying to quantify value can be tough without a structured approach. The EIGE toolkit recommends the graduated factor comparison method for small organizations, the pair comparison method for small-to-medium organizations, and the point-factor method for larger organizations.",[],{"type":728,"text":1925,"spans":1926,"direction":51},"Large enough for meaningful comparison. ",[1927,1929],{"start":31,"end":1626,"type":724,"data":1928},{"label":761},{"start":31,"end":1626,"type":42},{"type":36,"text":1931,"spans":1932,"direction":51},"Each category needs to support demographic analysis, and that becomes difficult if a category only has one or two employees. If your categories are too small, consider thinking across departments. For instance, even though a finance analyst, a sales analyst, and a product analyst all do different things, are their jobs close enough in skills, responsibilities, effort, and working conditions to merit categorizing them together?",[],{"type":728,"text":1934,"spans":1935,"direction":51},"Independent of pay outcomes. ",[1936,1938],{"start":31,"end":1529,"type":724,"data":1937},{"label":761},{"start":31,"end":1529,"type":42},{"type":36,"text":1940,"spans":1941,"direction":51},"If all employees within a category happen to fall into the same fairly narrow pay range, that’s great, but it shouldn’t be an expectation. Trying too hard to anchor your new categories to your current pay structures can result in categories that are difficult to justify and report on. ",[],{"type":728,"text":1943,"spans":1944,"direction":51},"Explainable and defensible.",[1945,1948],{"start":31,"end":1946,"type":724,"data":1947},27,{"label":761},{"start":31,"end":1946,"type":42},{"type":36,"text":1950,"spans":1951,"direction":51},"Make sure to document your thought processes and the reasons for your decisions. The EIGE toolkit will help with this, or you can keep your own records. ",[],"article_text$11e9b5d0-c197-4d4e-b1a8-a8196a2f20f8",{"variation":675,"version":676,"items":1954,"primary":1955,"id":1965,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1956,"text_size":871,"background_color":872},[1957],{"type":36,"text":1958,"spans":1959,"direction":51},"Wondering about last-mile EU Pay Transparency Directive preparations? Confused about how local laws are being transposed in your markets? Join experts from beqom and Erste Group for our fireside chat on how to prepare while rules are still shifting on April 30th, 2026.",[1960],{"start":1961,"end":1962,"type":46,"data":1963},186,248,{"link_type":48,"url":1964,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fevents\u002Fbeqom-starting-stalling-pay-transparency-webinar","article_text$1bf4f802-0b5f-4582-a1cb-4b68076fb746",{"variation":675,"version":676,"items":1967,"primary":1968,"id":1991,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1969,"text_size":687,"background_color":688},[1970,1973,1976,1982,1986],{"type":681,"text":1971,"spans":1972,"direction":51},"Common pitfalls to avoid when defining categories of workers",[],{"type":36,"text":1974,"spans":1975,"direction":51},"Based on years of experience helping organizations map their categories of workers, here are some common mistakes to be aware of.  ",[],{"type":1977,"text":1978,"spans":1979,"direction":51},"o-list-item","Defining categories based on outcomes. These could be pay outcomes, as mentioned above, or jobs that lead to performance-based bonuses or commission.",[1980],{"start":31,"end":1981,"type":42},37,{"type":1977,"text":1983,"spans":1984,"direction":51},"Making categories too narrow. Especially in larger organizations, it’s tempting to map out job categories based on intersections of multiple variables, like country, organizational entity, job title, job grade, and department. However, this might undermine your ability to make meaningful comparisons, and overcomplicate your category structure. ",[1985],{"start":31,"end":1529,"type":42},{"type":1977,"text":1987,"spans":1988,"direction":51},"Using subjective or vague criteria. Statements like “importance to business” or “high potential employees” are hard to explain or defend. Instead, dig down into the skills, responsibilities, effort, and working conditions. Is a particular role important to the business because it requires high responsibility? Or do employees within a role tend to advance because the role demands a high level of critical thinking?",[1989],{"start":31,"end":1990,"type":42},35,"article_text$a1f63a37-900f-4659-b2bc-de7b03fc4a51",{"variation":675,"version":676,"items":1993,"primary":1994,"id":2004,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":1995,"text_size":871,"background_color":1560},[1996],{"type":36,"text":1997,"spans":1998,"direction":51},"The Directive takes effect on June 7th, 2026. Is your organization prepared? Download our 6-point readiness checklist today.",[1999],{"start":2000,"end":2001,"type":46,"data":2002},90,117,{"link_type":48,"url":2003,"target":1107},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Feu-pay-transparency-directive-readiness-checklist","article_text$53c5104c-10e8-4ada-a2f7-c1b769962f91",{"variation":675,"version":676,"items":2006,"primary":2007,"id":2030,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":2008,"text_size":687,"background_color":688},[2009,2014],{"type":681,"text":2010,"spans":2011,"direction":51},"How beqom can help",[2012],{"start":31,"end":2013,"type":42},18,{"type":36,"text":2015,"spans":2016,"direction":51},"When you’re defining categories of workers, having visibility into your current pay structure is essential. beqom’s Pay Equity & Transparency tool allows you to compare groups of employees, spot patterns that might indicate bias, such as when women dominated roles are clustering lower than expected, measure and close pay gaps by category of worker and deep dive into your data. And when reporting time comes around, you can generate Directive-compliant reports and employee pay transparency statements at the click of a button.",[2017,2021,2024,2027],{"start":1596,"end":2018,"type":46,"data":2019},146,{"link_type":48,"url":2020,"target":50},"https:\u002F\u002Fwww.beqom.com\u002Fproducts\u002Fpay-transparency",{"start":2022,"end":2023,"type":42},331,349,{"start":2025,"end":2026,"type":42},434,462,{"start":2028,"end":2029,"type":42},467,503,"article_text$c106b19f-3ced-44af-9ee2-05ea9bbc151d",{"variation":675,"version":676,"items":2032,"primary":2033,"id":2040,"slice_type":690,"slice_label":5},[],{"section_id":5,"content":2034,"text_size":871,"background_color":872},[2035],{"type":36,"text":2036,"spans":2037,"direction":51},"Request a demo today to learn how beqom can help you make data-driven decisions that reward real impact, driving retention and results.",[2038],{"start":31,"end":740,"type":46,"data":2039},{"link_type":48,"url":1360,"target":50},"article_text$6fe73b43-ebd6-4214-a9bb-f8d93326cbc2","How to Define Worker Categories for the EU PTD | beqom","Learn how to define categories of workers for the EU Pay Transparency Directive. Discover best practices, the EIGE toolkit, and common pitfalls to avoid.",{"dimensions":2044,"alt":1765,"copyright":5,"url":2045,"id":1767,"edit":2046},{"width":25,"height":26},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FaeuT4sBOoF08xST4_2.jpeg?auto=format,compress&rect=0,23,1376,722&w=2400&h=1260",{"x":31,"y":818,"zoom":32,"background":33},"A Guide to Defining Categories of Workers for the EU Pay Transparency Directive","Prepare your organization for the EU Pay Transparency Directive by correctly defining worker categories. Explore EIGE toolkit recommendations, HR best practices, and common compliance pitfalls to avoid.","How to Define Worker Categories for the EU Pay Transparency Directive","Is your org ready for the EU Pay Transparency Directive? Learn best practices for defining worker categories, utilizing the EIGE toolkit, and avoiding common compliance pitfalls.","3f9f504","All Rights Reserved"]