Make a copy of this template and complete the compensation gaps table and the demographics table. To see what the report looks like when completed, see this . On average, a professional services contractor at [enter company name] is compensated less than a full-time professional who does the same job.
Contractor Pay Gaps by Wage Quartile 2
Contractor/Full-time Demographic Breakdown 2
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.
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 2