Gender Pay Gap is the difference in pay for groups of men & women and usually based on the average or median salaries. We can use Microsoft Excel to quickly calculate the GPG (Gender Pay Gap) from your data. In this article, let me explain the process, Excel formulas and offer you a ready to use GPG calculator.
What is Gender Pay Gap?
According to NZ Government,
Gender pay gaps are differences in pay for groups of women and men, usually based on the median or mean pay that men and women receive.
Source: Statistics New Zealand
How to calculate Gender Pay Gap in Excel?
Assuming you have average salary of men & women in two cells C3 & C4, we can calculate Gender Pay Gap using the below formulas:
Gender Pay Gap in $s:
=C3 - C4Generalized formula = average of male salary - average of female salaryPercentage Gender Pay Gap:
=(C3-C4)/C3Generalized formula = (average of male salary - average of female salary) / average of male salaryGender Pay Gap from raw data:
Excel is a great option for identifying and reporting gender pay gap issues when you have full employee data. Let’s say you have the staff data in an Excel table as shown above.
In this case, we can use below formulas to calculate the Gender Pay Gap:
Step 1: Set up your data in as a table
Create a 3-column table in Excel with the staff ID, gender & annualized full-time salary. (Related: Learn how to create a table in Excel)
Name your table as “staff” using the Table Design ribbon in Excel.
Step 2: Calculate male & female average salaries:
You can use AVERAGEIFS function in Excel to calculate the male & female specific average salary.
The formula for male average looks like this:
=AVERAGEIFS(staff[Annualized Full-time Salary],staff[Gender], "Male")And the formula for female average looks similar.
Step 3: Calculate the Gender Pay Gap in $s and %:
The formulas for this are explained above. They are:
GPG in $s: =Average Male Salary – Average Female Salary
GPG in %: =(Average Male Salary – Average Female Salary) / Average Male Salary
Step 4: Format everything
Format the GPG $ and Salary calculations in your currency formatting (Ctrl Shift 4)
Format the GPG % in Percentage formatting using Excel format cells option (CTRL Shift 5)
Please refer to below illustration for formula set up and help.
Average vs. Median Gender Pay Gaps
It is a good idea to calculate both average and median GPG values from your data. We all know that an odd high value can impact the average calculation. May be your CEO is a female and her high $$$ salary thus she bumps up the average female pay significantly.
To calculate the Median Gender Pay Gap values in Excel:
Firstly, calculate the median pay for both male & female groups. Unfortunately, Excel doesn’t have a MEDIANIFS function. So, use the below formula instead:
=MEDIAN(IF(staff[Gender]="Male",staff[Annualized Full-time Salary]))Caution: Array formula
After typing the formulas, press CTRL+Shift+Enter to get the correct result.
Change the gender value to Female for the respective median salary.
Once both medians are calculated, you can easily calculate the gender pay gap (both in dollars and percentage) using the same formulas as above.
Download FREE Gender Pay Gap Calculator – Excel File
Click here to download my Gender Pay Gap calculator template. Copy and paste your data and the file calculates the GPG automatically.
How to get the Hourly Pay Gap values?
Once you have calculated the Gender Pay Gap in dollars, just divide the number with total annual hours of work. In most countries, this would be 2080 hours (ie 52 weeks times 40 hours per week).
So, for example, if you have a pay gap of $3,117, then the hourly pay gap is $1.50
This means, female staff are earning $1.50 less than their male counterparts every hour.
Our GPG is negative, what does it mean?
A negative GPG value indicates that your female staff are paid more (on average or median basis) compared to the male staff.
Limitations & Problems with Gender Pay Gap statistics:
While Gender Pay Gap offers a great insight into the compensation of men vs women employees, it has a few limitations.
- GPG doesn’t explain any hierarchical distribution issues. If you have a lopsided distribution of staff in your organization (may be more female staff at lower-level positions and more male staff in senior positions), GPG doesn’t expose this issue. I recommend visualizing the male vs. female distribution by salary bands or seniority for a better insight in to these issues.
- A low or zero Gender Pay Gap is not enough. If you want an equitable and fair organization, aiming for a zero gender pay gap at aggregate level is not enough. You need to examine GPG by:
- department level GPG
- city / location level GPG
- manager vs. non-manager GPG
- new hires vs. existing staff GPG
- GPG is meaningless for small organizations. If your total headcount is less than 30, GPG calculations can be meaningless or less insightful.
In conclusion,
Gender Pay Gap is a key metric (KPI) in HR data analysis. Calculating, measuring and tracking GPG is helpful to understand any underlying pay issues in your organization. But don’t forget to explore the staff distribution, hiring patterns and historical trends to fully understand your data.
For more on HR data analysis, check out below articles:
29 Responses to “Customer Service Dashboard using Excel [Dashword Week]”
Looks good, Mara. Keep up the good work!
Thx Mara, your work is great, congratulations...
wow ! Great stuff Mara !!
I am amazed on the work you did !
What I like about your dashboard
1. The first impression is the colors used. Very smart use of colors that matches each other, easy on the eye - make people wants to find out more !
2. Clear message shown for the tweetboard for Quick overview on the state of situation.
3. Use of creative titles for your charts "Information Desk".
4. Clear and uncluttered charts. Gives reader a clear perspective with good use of charts colors too.
5. Good use of Legend to describe what color meant "Highest Sales out of the three months"
6. Of course, good use of Check boxes and Slider bar to offer interactiveness on your charts.
Suggestions
1. You may want to consider formatting your Y and X axis labels to show thousands, in $500K format instead of $500,000, so you can even made your chart look much neater.
2. Budget Variant Chart - This one is special...I took a second look and try to understand it. I am not sure if this is the best chart to visualize Sales VS Budget and Variances. And the Variance of 16.19% is positive, so u may want to use conditional formatting to make it green color, red if negative.
Overall is Great Work and Great Effort !!! Keep it up and I am so proud of you !
Francis Chin
http://www.francischin.com
Great Work Maya, just wondering if "5" Scrollable list of various gift shop items, can compare the previous 2 and current month selected in the above picklist, just one more suggestion if we can use top 5 gift category by using donut and bar mix chart to show sales mix for different months
Chandoo I would like to thank you for posting such helpful tricks for creating dashboards, I have learned a lot from your KPI Dashboard demo, I have created one dashboard to compare performce of Sales Associates, thaks a lot again
Thanks for the idea! Great job! You are giving me a lot of inspiratons!
Thanks everyone for the nice comments. I'm such a novice at this so I was so grateful for Chandoo's class and for everyone who submits ideas on his blog.
Francis: Thanks so much for your comments. You're an inspiration. For the budget variance chart, I actually got that idea from one of Chandoo's post on budget vs actual. There was one that was simple and easy to read so I learned how to do that and made it dynamic. I'm open to any other ideas you have for budget vs actual. I'm always looking for ways to improve.
Sabrina: Thank you for you for your suggestion on the top 5.
Dear Mara,
Great work.
But i one suggestion regarding the INFORMATION DESK graph is consist of month but which year it belong is not there if it would be there it would be great.
Warm Regards
Bhushan Sabbani
+91 98208 26012
Thanks for this idea... Great Stuff !!
Excellent dashboard Mara.
The best I like about the dashboard is the choice of colors. They are cool and not distracting. Thanks for sharing the file.
@Chandoo
Thanks for the dashboard week Chandoo. I am learnt a lot in the last 2 days. I am excited over the next 3 days! 🙂
Regards,
Ravi.
Great work Mara ! Thanks for sharing .
Mara, I liked the line, "Need to be more helpful." Our government needs to print this line, laminate it and post it in all government offices for the staff to see.
Hi there, i have been recently visiting this blog it is really great, the best one for Excel, wish Chandoo great success ahead.
I have one query, if you protect the data sheet the chart with the checkbox gives and error saying the data is protected and cannot be modified, is there a way around. This is cause if we want to publish this to someone who should only see it and do no changes to the data, is it possible please guide.
This could be a silly but bear me i am novice to excel 🙂
Thanks.
nice work.
inspired me a lot, working on few dashboard projects...
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dear mara
looks great .any reason why you have not used the bullet chart for the actual vs target chart.on the whole it is simple and elegant .jay.
Dear Chandoo,
The word Dashboard in the heading is misspelt.
Wow. Very Nice work Mara. Next week I am going to take the Course, I will try to post my work here.
Thank you so much for your helpful blog. Always appreciated your tips and tricks.
I am proud that you belongs to our Vizag City.
The above comment, I forgot mentioned about Chandoo, those two paras is about Chandoo. 😀
Thank you Mara!
Thx Mara, your work is great, congratulations…
Great Work Mara!!!!!!!!!!!!!!!!!!!!!!!!!!
Hi Chandoo,
I had been following your blogs for tips and tricks on excel. I am working with Media agency and we collect the data. Now this data has several parameters based on several legends. For eg Class A - legend color red, classB - legend color green and so on. Class A has several characteristics and parameters and heading etc. Now everytime we gather data and make pivot then based on the data in the pilot tables - top 10 we need to insert those in charts manually and also need to change the colors of legends and also. We create nearly 300 slides every month sector wise and it takes nearly our 4-5 days in doing that. Do you have any sample dashboard which will be helpfull to us and we can create it in a day.
Thanks really amazing one,
it helped me in desgining OTACE report
Regards
Gowravan M
9980651792
Awesome Job done here .............
very good master piece but wont to know if you can design KPI's for a financial institution. Thank you
I need help to make performance for our company
we have about 10 products from 5 years old