This section explains Proportional Value, or indirect comparison of male and female job classes, and shows comparison results.
Introducing Proportional Value
Proportional value is a method of indirectly comparing female and male job classes. Space Toy Co. was required to use Proportional Value to provide pay equity for three female job classes, unmatched under the Job-to-Job approach.
Requirements for Space Toy Co.
Space Toy Co. was required to look at the way male job classes were paid in the organization by examining the relationship between the value of the work performed and the compensation received. This relationship is most often expressed as a pay line which can be drawn either free hand on a graph, or mathematically, through what is called regression analysis.
Once the relationship between job value and compensation was analyzed, Space Toy Co. could predict what it would pay a male job class of any given value. With this information, Space Toy Co. simply had to ensure it was paying its unmatched female job classes on the same basis as it pays the male job classes.
Achieving pay equity using Proportional Value
Pay equity is achieved when the relationship between the value of the work performed and the compensation received is at least the same for female and male job classes.
In this overview, you will find information on:
- legal requirements and deadlines
- the steps required to achieve Proportional Value
- different methods to create a Proportional Value wage line
- a free-hand calculation
- a computer regression analysis program calculation
- a manual regression analysis calculation
- an interactive regression analysis worksheet
- the Proportional Value results for unmatched female job classes at Space Toy Co..
- a pay equity plan, amended for Proportional Value