What is pay equity software?

Pay equity software analyses employee pay to find differences between comparable employees that legitimate factors such as level, location, tenure and performance do not explain, and produces documentation an employer can defend to a regulator or a court. Most tools do some combination of four jobs: gap analysis, remediation modelling that costs out the fixes, regulatory reporting for specific jurisdictions, and job architecture or pay range design. Few do all four. The important distinction when comparing tools is between the unadjusted gap, which is a simple average comparison, and the adjusted or unexplained gap, which requires a statistical model and is the number that actually matters.