Have you heard of these terms? If not, it is a good time to become familiar with the difference.

And just to make it a bit more complicated, you will also hear the terms controlled (adjusted) and uncontrolled (unadjusted) pay gap.

Payscale’s 2024 Gender Pay Gap Report was recently published. I’ve put a link to the report summary in the first comment below.

This report defines the terms this way:

(1) The uncontrolled gender pay gap is how women are paid compared to men holistically, which can be understood as a measure of how society values women’s contributions in the workforce compared to men’s. The uncontrolled gender pay gap is sometimes called the “opportunity gap” because it represents the unequal or inequitable distribution of employment and opportunities between men and women.

(2) The controlled gap measures “equal pay for equal work,” meaning how women are paid compared to men in the same jobs or similar jobs with similar qualifications.

Knowing the difference and being able to calculate the controlled and uncontrolled pay gap is critical.

Many employers must comply with U.S. laws that require pay gap reporting. And if you have employees outside of the U.S., be sure to review the legal requirements by country.

If you feel like compensation is becoming more complex and that there isn’t a slower season after delivering merit increases, bonus payouts, and LTI grants, you are right.

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Comment: https://www.payscale.com/research-and-insights/gender-pay-gap/