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Compensation Analysis

Pay Equity Analysis Using Multiple Regression

It is commonly known that under Executive Order 11246, federal contractors must conduct ongoing analyses of their compensation systems as part of their Affirmative Action Planning / EEO Compliance efforts. What is not commonly known is that the OFCCP is now aggressively using multiple regression as the tool in which they audit contractors. The OFCCP has recently hired additional statisticians to assist in their efforts to bring statistical analysis into mainstream OFCCP audit efforts.

Conducting multiple regression analyses is not like running availability analyses for an AAP, they are more complex and require the help of a consultant. In the proposed guidelines the OFCCP is looking at analyzing data starting with analyzing the "mean within salary grade" to determine if there may be groups worth analyzing further (i.e., using multiple regression). If significant differences between male/female or non-minority/minority groups still exist, the OFCCP will typically seek to establish Similarly Situated Employee Groups (SSEGs).

Biddle Consulting Group (BCG) has the necessary experience and the tools to assist you in determining statistically significant gaps between gender and race/ethnicity. We have been conducting court approved high-level statistical analyses for over 30 years. In fact, developing analyses in discrimination cases is our specialty.

Want to know more about conducting OFCCP style compensation analysis?

Compensation Analysis Software - COMPARE
Compensation Analysis Book by Patrick M. Nooren, Ph.D.

For more information about our pay equity and multiple regression analysis services, please contact Biddle Consulting Group, Inc. at (800) 999-0438 or staff@biddle.com