Pay Equity Concerns at a Large University

Below you'll find just one example of how Sibson's performance and rewards practice helped a client with pay equity concerns, helping our client resolve compensation issues swiftly and amicably. 

Client issue

As the negotiations with the faculty union drew near, the Provost at a large public University decided to gather greater insights into the two issues at the top of the union’s agenda:  competitiveness of faculty salaries and gender and racial bias in faculty pay-setting.

Our Solution

Sibson Consulting conducted both a pay equity study and a competitive assessment of faculty pay, based on the faculty’s previously established peer group.

The competitive assessment identified those areas where pay was misaligned with the market.

For the pay equity study we performed a multivariate regression analysis, which:

  • uncovered specific disparate pay situations, with respect to gender and race
  • identified other systemic remediation issues, from factors including years of service and rank at hire, to address and balance the disparities identified

In a multi-step process, Sibson:

  • Reviewed and categorized census data into groups of similarly situated employees
  • Prepared initial descriptive statistics, identifying any pay gaps between the genders and races, and conducted t-tests to examine the statistical significance of those gaps
  • Performed a multivariate regression analysis highlighting variables strongly correlated to pay, identifying areas of concern
  • Produced a range of expected compensation by individual employee to determine outliers, and to quantify the cost of remediation for those affected

Results of our Recommendation

Sibson’s competitive assessment identified the cost to bring the university’s faculty pay into better alignment, while our multivariate regression analysis identified specific pay disparities on which the University could act.

Much of the analysis gathered through the Sibson study was shared with the faculty negotiating team.  In the spirit of transparency, Sibson was asked to vet its multivariate regression analysis methodology with the lead negotiator, the head of the University’s Statistics department.

As a result of this fact sharing, there was swifter resolution of the compensation issues that had stood in the way of an amicable new contract settlement with the faculty.

Questions? Contact Us 

If you have any questions, just get in touch. 

Contact Sibson ›

Share this page

Contact an Expert