Pay equity and salary increase calculator

Carry out a pay equity audit and then make data driven salary adjustments all in one spreadsheet.

Intro

How this template works

Input sheets

1. Market data

🔢 This is where you copy and paste in your organisations salary bands (salary benchmarks).

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If you don’t have salary bands in place, then check out the Salary Bands Template here.
2. Setup

🔢 Customise certain elements of the calculator such as the default currency you wish to work in, currency conversion rates, how you’d like to round the data, the number of levels you have, naming conventions for the levels, gender types, employment types etc.

Output sheets

1. Employees

✅ This sheet will show you how your employees stack up against your salary benchmarks and uncover where pay inequities exist using either ‘Position in band’ or ‘Compa-ratio’ (more on how these work below).



✅ The sheet will automatically calculate suggested salary adjustments to move employees to the min or mid point of the band.

✅ Capture manager input into salary changes and see how their requests stack up against the suggested increases.


2. Dashboard

✅ A macro view of your organisation, allowing you to discover what it will cost to bring employees who are underpaid to your desired market rate.

✅ Uses GoogleFinance, to normalise multiple currencies into one, making budgeting a breeze across multiple locations.

✅ Calculate your gender pay gap.

✅ Analyse pay gaps based on:

• Gender
• Team/dept.
• Level
• Tenure

✅ Easy to use pivot tables that allow you to dive deeper into any problem areas that require further investigation.

✅ Create departmental/team budgets for managers and/or finance.


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I’ve kept this section lightweight, as I’ve found most organisations like to build their own dashboards. If you’d like help analysing the output and building additional graphs, then simply use the link here to book in time for customisation work.
3. Calculator

✅ A calculator to help you quickly view your salary bands based on a location, job family and employment type.

4. Benchmarks Matrix

✅ A quick snap shot of all your market data for all locations, job families and levels in one place.

Analysing pay equity in your organisation

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1. ‘Position in band’ aka ‘Salary range penetration’

This is my personal favourite and allows you to explore the full spectrum of the salary band, allowing you to understand where an employees salary sits.

In addition to this, it allows you to clearly identify employees who aren’t even paid within the salary band i.e. they are below 🙁 or above 🚀 the band

Formula

• Range penetration = (Employee salary - Min salary) / (Max salary - Min salary)
• A range penetration of 33% in the example below means the person is within the band ✅. They have another 77% left to go until they need to have her position, or range, looked at.

Below the band

• I prefer using this metric as it’s a great way to identify anyone who is below the min of the salary band and the cost to move them to within the band. This allows you to make the most important adjustments first to ensure pay equity.
• If you capture the right details in the spreadsheet, you can also look at position in range by gender, ethnicity, age or time within your organisation.
• For example, if you have lower penetration rates for females, then you may have an equity challenge with that particular gender.

Above the band

• Don’t forget to identify and diagnose why some people are above the band.

Within the band

• For people who are within the band, why are some people at the top of the range and some people at the bottom?
• Do you need to move anyone who has a low range penetration (i.e. bottom of the band) to a higher range penetration based on their performance?

What you get with this template

FAQs

Need something more bespoke?