Sweden — Pay equity analysis and reporting (lönekartläggning)

Pay equity analysis requirements in Sweden

To facilitate equality in the workplace, Sweden integrated pay equity analysis requirements into its Discrimination Act, implemented in 2009. The requirements are centered on an annual compensation mapping analysis, or lönekartläggning. 

This analysis considers equal work (or substantially similar work) and work of equal value to see if gender affects employees’ pay.

All employers must conduct this analysis annually, but only employers with 10 or more employees need to document it. This documentation should be kept on file to be handed in to the DO (Diskriminerings ombudsmannen) upon request.

There are additional requirements for employers with 25 or more employees that have identified a pay gap. These organizations must also document the following:

• The measures they need to take in order to close the gap.
• When they plan to implement those measures (which must be within three years at most).
• The cost (monthly or yearly) of closing the gap.
• A reflection on the progress made and the steps they have taken in the last year.

Lönekartläggning support with PayAnalytics

PayAnalytics thoroughly equips users to create reports for lönekartläggning. Our compensation mapping feature can generate analyses that meet Sweden’s three main requirements:

• Analyzing equal work (or substantially similar work) to identify any compensation differences between genders.
• Analyzing equally valued work, comparing jobs that are predominantly female to other jobs (non-female predominant) of equal value and identifying any differences in compensation.
• Analyzing predominantly female jobs and comparing them to lower-valued jobs that are not predominantly female but receive higher compensation.

Using the Swedish preset, users can get the results for these analyses in just a few clicks. The system also makes it easy for users to fine-tune their analyses and document their findings. The compensation mapping feature offers the following:  

• Comparison can be based on median or average compensation. 
• By default, jobs where at least 60% of the employees are women are considered to be predominantly female. Users can easily modify the predominance of jobs and document the reasoning (e.g., historical representation). 
• Results presented as graphs and tables, along with informative text that draws out the main results of each analysis. 
• There is an option for notes to document any differences in pay and the reasons for them.
• The complete compensation mapping can be exported to MS Word and used as the basis for an easily tailored written report.

Two of Sweden’s required analyses start by determining which jobs are of equal or comparable value. Our job evaluation feature lets users establish the value of different jobs using objective criteria (like responsibility, effort, knowledge and skills). We offer both built-in job evaluation templates and a wizard that lets users create their own. PayAnalytics can also use pre-existing job evaluation frameworks created in MS Excel.

If an organization identifies any compensation differences between men and women doing equal work or work of equal value, PayAnalytics helps with the next steps.

• The software can analyze whether the difference can be explained by any factor other than gender. With regression analyses, users can generate a model of the compensation structure. This lets them see which variables contribute to the compensation difference and by how much. 
• PayAnalytics makes it easy to drill down to different groups to obtain a better understanding of the pay structure.
• The platform can suggest raises to close or reduce pay gaps – while staying within a budget.
• Once the pay gap is closed, the Compensation Assistant helps make sure that it doesn’t creep back open as employees are promoted or hired.

PayAnalytics does more than just help perform lönekartläggning and prepare reports that will satisfy the DO. It helps companies know what their pay structure looks like at all times, so there will not be any surprises for next year’s analysis.

The platform also goes beyond equity in pay alone: with the workplace equity feature, users can visualize workforce diversity in hiring, termination and internal mobility. This tool helps identify other types of workplace inequity, like unequal access to opportunity.