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.