Making pay equity and fair compensation simple is important. To help you meet the latest requirements of the EU Pay Transparency Directive and follow the EIGE (European Institute for Gender Equality) guidelines, we are now updating the default settings for job evaluation in the Lönekompassen module.
With these updates, you get even better support to make your job evaluation mathematically objective and transparent right from the start.
What is new?
To prevent invisible gender bias from affecting the assessment, we are transitioning to a completely linear score distribution in our default template. By removing disproportionate scoring jumps, we ensure that traditionally female-dominated skills are valued in an equivalent and balanced way compared to traditional factors.
Here are the most important changes in the system's default template:
- Linjär scoring: The default template contains fifteen questions. Each question has five levels where the points are now distributed completely linearly:
- Level 1: 20 points
- Level 2: 40 points
- Level 3: 60 points
- Level 4: 80 points
- Level 5: 100 points
- Updated questions: To make the analysis more accurate and closer to the official EIGE terminology, we have merged the previously separate questions about revenue and cost responsibility. These are replaced by the coherent sub-factor: Financial responsibility, with five clear response levels ranging from "No direct financial responsibility" to "High financial responsibility". This also prevents financial responsibility from being double-counted in the system.
- Grouping: The default setting for the parameter Grouping of equal work (the tolerance level for score equality) is changed to five percent to provide fewer levels.
How does this affect you as an existing customer?
We protect your historical data. Therefore, no scores or settings are changed automatically in your active, existing factor plan. The changes apply as default only if you activate them yourself.
It is important to emphasize that the model you use today is not incorrect. The EU directive places strict requirements on job evaluation being objective and gender-neutral, but there is no requirement in the directive or from EIGE that you must use our specific new default model. If your current factor plan works well and reflects your business in a fair way, you can safely keep it. Our new standard is simply an updated basic proposal from our side to give new configurations the best possible start.
How to switch to the new standard
If you want to update your existing factor plan to the new, linear standard, you can easily do it yourself. Inside the system, you click the button Reset to default to apply the new settings.
