Just 3.0 Program Manual

Calculations

CALCULATION TEMPLATE

This worksheet includes a template for calculating racial and ethnic pay scale variance. Organizations are welcome to use a different template as long as the submitted data meets the documentation requirements.

ORGANIZATIONS WITH MULTIPLE LOCATIONS

EXAMPLE:

  • An architecture firm has offices in New York, NY, Washington, DC, and Atlanta, GA.
  • The maximum racial and ethnic pay scale variance for employees in the New York office is 7.5%.
  • The maximum racial and ethnic pay scale variance for employees in the Washington office is 6.8%.
  • The maximum racial and ethnic pay scale variance for employees in the Atlanta office is 4.5%.
  • The maximum racial and ethnic pay scale variance for all employees across the three offices is 11%, due to cost-of-living differences between locations (i.e., the difference between the highest paid individuals within a pay class based in New York and the lowest paid individuals within a pay class based in Atlanta is greater than the difference between individuals within a pay class who are all based in the same location).

Single Office Basis:

  • The firm uses the individual office with the greatest racial and ethnic pay scale variance, in this case, New York with 7.5%. Taking this approach, the firm would achieve Level 2.

All Offices Basis:

  • The racial and ethnic pay scale variance across all offices is 11%. Taking this approach, the firm would achieve Level 1.

VARIANCE CALCULATION

For each pay class:

  • Average (mean) base salary and bonus for employees who do not identify as a racial or ethnic minority = A
  • Average (mean) base salary and bonus for employees who identify as a racial or ethnic minority = B

Where A is greater than B:

  • Variance = [(A-B)/A] x 100

Where B is greater than A

  • Variance = [(A-B)/B] x 100

Organizations can also choose to adapt the Gender Pay Gap Calculator from Dezeen. For each pay class:

  • Input data for employees who do not identify as a racial or ethnic minority where prompted for “male employees.”
  • Input data for employees who identify as a racial or ethnic minority where prompted for “female employees.”

For the purposes of this Indicator, variance percentages must be reported as is (i.e., out to two decimal places) and cannot be rounded.