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CONTRACTOR FAIR PAY CALCULATOR
Introduction
Contractor Pay Gap Calculator
How Can Companies Do Better?
[Template] Pay Equity Report
[Example] Pay Equity Report
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[Example] Pay Equity Report

This page provides an example pay equity report. In order to complete your own version of the report, make a copy of the
template
⁠
.

On average, a professional services contractor at [enter company name] is compensated
42%
⁠
less than a full-time professional who does the same job.

Contractor Pay Gaps by Wage Quartile
1
⁠

Contractor/Full-time Demographic Breakdown
1
⁠

Fill out the following table using the average pay gap compensation formula:
[(Full-time A - Contractor A) / Contractor A + (Full-time B - Contractor B) / Contractor B] * 0.5
For example, imagine Contractor A, whose total compensation is $100,000, and Contractor B, whose total compensation is $200,000. Based on the work that Contractor A and B do, they are paired with Full-Time A (total compensation: $150,000) and Full-Time B (total compensation: $250,000), who do very similar jobs as A and B, but are full-time employees. The pay equity metric would be calculated as follows:
= [ ($150,000 - $100,000)/ $100,000 + ($250,000 - $200,000)/ $200,000 ] * 0.5
= 37.5%
Pay gaps can look very different at different income levels, so it’s critical to cut data by quartile.
Pay Equity Form
1
Name
Compensation Gap
1
Average Contractor Compensation Gap
42%
2
Lowest Quartile
40%
3
Top Quartile
40%
4
Upper Middle Quartile
50%
5
Lower Middle Quartile
20%
6
Lowest Quartile
30%
There are no rows in this table
222%
Sum
⁠
Recent studies suggest that tech company contracting workforces have very different demographic breakdowns compared with their full-time employees. This, coupled with compensation gaps, can lead to companies paying underrepresented minorities less than other workers for the same job. Work with the HR departments at your subcontracting agency to gather demographic information on your contractors and combine that with demographic information on full-time employees.
Contractor and Full-time Demographics
1
Identify as...
Contractors
Full-time
1
Man
35%
55%
2
Woman
55%
40%
3
Non-binary
10%
5%
4
White
40%
60%
5
Black or African American
10%
5%
6
Hispanic or Latino
10%
5%
7
Asian or Asian American
10%
20%
8
Native American or Indigenous
5%
2%
9
Pacific Islander or Hawaiian
2%
2%
10
Other race
10%
10%
There are no rows in this table
⁠


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