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UNIVERSAL FAIR PAY CHECK

Equal opportunities: the key to success

All around the world, some people are still earning less than others – in the same company and for the same or equivalent work. There are many reasons for this. Whether someone is a man or a woman, whether they have children, their origin, their faith, and whom they love – all these are factors that can affect salary. But unjustified differences in income are unfair and not very smart. Fair pay has an extremely effective domino effect on all other areas of business: if all employees have the same opportunities, they are more satisfied. Motivation increases, staff turnover drops. Diversity and inclusion increase across the board. The company becomes more attractive to new blood and to new skilled employees. That saves a great deal of costs internally, and makes for happier clients, stakeholders and investors. All in all, the company becomes more successful.

A bouquet of policies: a rainbow of opportunities!

Most firms have already recognised the business case for equality and equal opportunities. They are prepared to spend good money on becoming more diverse and more inclusive, because those who want to achieve a great deal often also commit a great deal. However, many measures do not automatically lead to the objective being achieved faster. Effectiveness is often very difficult to assess, and the monitoring of success is often vague. But there is one excellent way of accurately gauging the success of all measures: Fair Pay.

Whether a mentoring programme, unconscious bias training or the advancement of women – if you analyse the success of measures in terms of whether there are still differences in income, this will give you both an objective criterion and an effective lever. That is because regular analysis of the payroll system shows very clearly what works and where adjustments are needed. So if the various measures are bundled together and focused solely on a fair remuneration system, the objective will be achieved faster.

Fair pay closes all gaps

Most companies and organisations prefer to start with the gender pay gap: there is often a lack of data on types of discrimination such as those based on ethnic origin or sexual orientation, whereas salary data for female and male employees are generally available and can be analysed to calculate pay gaps. We encourage organisations to calculate other pay gaps too – but we know that those who work consistently for fair pay automatically create equality of opportunity for all.

Compensating existing income differences between men and women initially means adjusting salaries. Avoiding fresh divergences in the future means creating pay structures that are neutral, objective and free of discrimination. And so in the end, everyone is paid fairly – regardless of where the employees come from, who they love or what they believe in. Thus when the gender pay gap is closed, all other pay gaps are closed too.

End the certification chaos

It is true that all around the world, there are various ways for companies and organisations to have remuneration strategies certified – and to receive recognition for these efforts. But until now, none of the test methods has encompassed everything undertaken  to achieve fair pay. The certification chaos is particularly cumbersome for those who have the very best intentions and want to ensure fair pay for all employees at all their sites worldwide, regardless of local legislation and the corresponding test methods, the size of the company or the form of the organisation. In short: a remuneration system that is fair to all.

The UNIVERSAL FAIR PAY CHECK closes this gap – and unites the best statutory initiatives in the world to form a single method: the pay analyses from Switzerland, the standardisation process from Iceland and the transparency initiative from Great Britain.

To zero in three phases: Universal Fair Pay Check

The aim of the certification process is to close all internal pay gaps in an organisation in three phases, and to offer equality and equal opportunities for all employees. This takes a shorter or longer period of time depending on the starting point and requires various interlocking measures as well as regular monitoring. For the analysis of their pay data, the implementation of fair pay and the adaptation of suitable measures, organisations are given advice and support by the FPI during all three phases. Throughout this process, advances or relapses are checked every year. And awards culminating in Universal Fair Pay Leader are made annually.

Throughout the whole process, the focus is on sharing best practice: right from the start, companies and organisations share their experiences and challenges in expertise workshops, and discuss suitable tools and methods, from analysis through to closing all pay gaps.

ANALYZE your position
DEVELOP your measures
LEAD by example

At the start of the Universal Fair Pay Check, organisations examine their pay structures. As part of the analysis, the payroll system and the corresponding components are assessed to see whether they reflect the company ethos. In the analysis, those factors that influence remuneration are broken down, for example role, department or length of service. Furthermore, the effect of variables that should not affect remuneration, such as sex, for example, is calculated. The list of variables from the Fair Pay Matrix can serve as the basis.

The analysis is carried out on the basis of the organisation’s internal data, and it provides the foundation for a precise determination of all further steps necessary to implement fair pay. From the analysis, it is apparent how the whole spectrum of employees in the organisation is distributed over the various salary levels. In particular, using such data flags up the challenges specific to the organisation in the implementation of equality and fair pay, and determines the appropriate methods and instruments for closing any identified gaps.

The organisation can choose its own form of analysis. Suitable tools for calculating the pay gaps can be found in the FPI Tool Compass. All companies and organisations are invited to share Best Practice: they will receive our Best Practice Arguments, access to our Expertise Pool and Best Practice Insights. Companies and organisations can discuss suitable tools and methods in Fair Pay Workshops.

Requirements for achieving the status of Universal Fair Pay Analyst:

  • The organisation carries out an analysis of the pay structures for all its employees.
  • At the very least, this analysis will calculate the unadjusted and adjusted gender pay gaps (in respect of basic salary, bonuses and total remuneration). It is useful to then identify further pay gaps on the basis of demographic factors such as age or ethnic origin.
    The unadjusted gender pay gap shows the percentage difference between the average gross hourly pay for women and men.
    The adjusted gender pay gap shows the percentage difference between the average gross hourly pay for women and men in comparable positions – taking into account the variables of role, level and requirements. The calculation is undertaken using multiple regression analysis on the basis of all employee data. If it is not possible to include all employees in the calculation, the FPI must be notified of the reasons why.
  • The organisation formulates suitable measures for closing the calculated gaps.
  • In a written Fair Pay Commitment, the organisation undertakes to implement fair pay and transparency. The organisation can set itself additional goals over and above this.
  • All the necessary data and measures are made available to the FPI for checking. In this phase, all the details from the organisation are treated confidentially and are not published.

In the Developer phase, organisations apply the policies formulated in Phase 1 for implementing a fair pay structure. Here, organisations document the implementation process for the individual measures and check the effectiveness of the measures regularly (at least once a year). If a measure does not prove expedient, it is improved.

The aim in this phase of the check is to achieve an adjusted gender pay gap of zero percent. This means that all employees in the same and comparable positions are paid the same.

Requirements for achieving the status of Universal Fair Pay Developer:

  • The organisation implements the measures that have been set out, and reports regularly to the FPI – at least once a year – on how implementation is progressing.
  • The organisation documents the implementation process for the measures as a building block in the regular effectiveness review.
  • The organisation achieves an adjusted gender pay gap of +1 to -1 percent. On request, the adjusted gender pay gap can be published.

Phase 3 of the Universal Fair Pay Check is achieved once the organisation has clearly lowered the unadjusted gender pay gap, the value is between -10 and +10 percent, and monitoring shows a continuous narrowing of the organisation’s internal pay gap. The objective is for the company to continue its efforts, aiming for an unadjusted gender pay gap of around zero percent.

Organisations with Universal Fair Pay Leader status show that they are actively addressing their salary structures and the processes for recruitment and promotion, reconciliation policies and the organisational culture. Successful implementation of measures is made transparent and is effective publicity as part of strategic organisational communication.

Achieving the status of Universal Fair Pay Leader is a sustainable goal and a milestone on the way towards fair pay. Depending on the starting point, organisations need several years to close the pay gap entirely and counteract any renewed widening of the income gap over the long term.

Throughout, the organisation is given advice and support on a step-by-step basis over a longer period of time. Sharing Best Practice with other companies and organisations takes place routinely, in Expertise Workshops and targeted Best Practice Insights. The process and certification of an organisation is not contingent upon its size, sites, organisational form or the respective statutory obligations.

Requirements for achieving the status of Universal Fair Pay Leader:

  • The organisation shows an unadjusted gender pay gap from +10 to -10 percent.
  • By continuing to implement existing measures and developing new or adjusted measures, the organisation aims to achieve an unadjusted gender pay gap of around zero percent.
  • The organisation engages in sharing Best Practice with other organisations.
  • The organisation communicates openly and ensures that its efforts in relation to fair pay, as well as the level of its gender pay gap, are transparent in internal and external communications.
  • The organisation continues to analyse its own pay structures on a regular basis.
OUR PILOT FIRMS

Allianz Deutschland AG

esentri AG

Landspítali – National University Hospital of Iceland

MCT Agentur GmbH

Reykjavík Energy

Rheingans GmbH

Companies and organizations that participate in the Universal Fair Pay Check receive the following services in addition to support and guidance through all three phases of the check:

  • Invitations to all our events
  • Best Practice Insights from other companies
  • Access to the Fair Pay Publications (Argumentarien)
  • Access to the FPI Tool Compass
  • Networking with other compensation experts
  • Assistance in the search for a suitable analysis partner
  • Discounted access to Fair Pay Expertise Workshops
  • If desired, inclusion in the FPI public relations
  • As well as a signed book copy of "Über Geld spricht man" by Henrike von Platen

When sending the application form, a one-time processing fee of 250.00 Euros is due – regardless of the size and number of employees.

The fees for the annual certification are calculated in the first year (basic fee) and in the following years (resumption fee) depending on the number of employees. When the certificate is awarded, the processing fee is credited against the basic annual fee.

Price table

Number of employees Processing fee Basic fee Resumption fee (yearly basis)
1-49 250.00 € 500.00 € 375.00 €
50-249 250.00 € 800.00 € 600.00 €
250-499 250.00 € 1,000.00 € 750.00 €
500-999 250.00 € 1,300.00 € 975.00 €
1,000-4,999 250.00 € 1,800.00 € 1,350.00 €
5,000-9,999 250.00 € 2,200.00 € 1,650.00 €
10,000-24,999 250.00 € 2,700.00 € 2,025.00 €
25,000-99,999 250.00 € 3,200.00 € 2,400.00 €
over 100,000 250.00 € 3,500.00 € 2,625.00 €

 

Logo Universal Fair Pay Leader

Application

This information is used to apply for the Universal Fair Pay Check.

Upon submission of the form and after receiving the processing fee of 250 Euro, you will obtain access to the following offers:

  • Invitations to all our events
  • Best Practice Insights from other companies
  • Access to the Fair Pay arguments
  • Access to the FPI Tool Compass including instructions for use
  • Assistance in the search for a suitable analysis partner
  • Networking with other compensation experts
  • Discounted access to Fair Pay Expertise Workshops
  • If desired, inclusion in the FPI public relations
  • And a signed book copy of "Über Geld spricht man" by Henrike von Platen

As soon as we have your data, we will send you a detailed questionnaire. This will serve as the basis for assignment to one of the three phases of the certification process (analyst, developer, leader). Basically, to achieve one of the three phases, it is necessary to start appropriate measures soon or to readjust measures already taken.

The costs for a certification can be found in our cost overview.

With today's form submission you declare your goal to implement fair pay and provide information whether analyses or certifications have already been carried out in your organization.

To make your goal public, you can provide a commitment statement for the communication of the FPI. In this case the FPI will also publicly name your company. This can also be submitted later.

It only takes a few minutes to complete this form.

Data of the organization