Compensation management salary equity report shows inconsistent results

juliasys
Sun, 03 Aug 2025 10:15:00 +0000
Workday HCM

We’re preparing for our annual compensation equity analysis and the Workday salary equity report is producing inconsistent results that don’t match our manual calculations. The salary normalization methodology appears flawed - when we compare employees in the same job level classification with similar tenure adjustment factors, we’re seeing unexplained variance of 8-12% in the equity ratios.

Our concern is the performance rating integration and how it feeds into the aggregation logic. We’ve configured the report to normalize salaries based on job family, level, tenure, and performance rating, but the output suggests these factors aren’t being weighted consistently.

Equity_Ratio = (Actual_Salary / Expected_Salary) * 100
Expected calculation:
Expected_Salary = Base_Rate * Tenure_Factor * Performance_Factor
Tenure_Factor: 1.0 + (Years_In_Role * 0.02)
Performance_Factor: Rating_Multiplier from config

When we filter the report by department, some groups show perfect parity while others show significant gaps that don’t align with our known compensation practices. The aggregation logic standardization seems to be the issue - has anyone successfully configured the equity report to handle complex compensation structures with multiple adjustment factors?

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