A regression analysis on compensation has been run to illustrate this. For a standard summary, the first section provides an overall regression analysis of gender impacts on compensation. This includes the reference gender and the factors used as controls for the regression model – in this case, these are: gender, length of service, flsa exempt status, eeo job code and job title. This also shows that 100% of the observations are in qualified comparison groups as specified by the OFCCP. The result for this analysis shows that the pay rate for female employees is 7.76% less than the pay rate for male employees, with a standard deviation of 1.64. Were this an OFCCP desk audit, there would not necessarily be a need to pursue more information on differences in pay by gender, since these results do not indicate a statistically significant difference based on OFCCP guidelines.
The detailed report will include a statistical test of the factors used in the regression model. For this analysis, a table is included with the number of observations used in the analysis, the degrees of freedom for error and the percent of the variation explained by the model. For the overall analysis of gender impacts on compensation, the selected model with the included factors explains 86.5% of the variation in compensation. In the subsequent table, note that service, EEO job code and job title have a significant impact on compensation at a 95% confidence level, as indicated by the highlighted standard deviation values of 5.20, 3.56, and 7.30.
Another option is to display only significant regression results. This would only include the items from the standard analysis that produced significant results. This also provides information such as reference groups and controls used in the regression model. Note that all the resulting estimated impact for this specified report would be highlighted in red or bolded since only results considered significant based on typical OFCCP guidelines are included. For this regression analysis, the “Black” employees appears to have a pay rate that is 71.35% less than the reference race within the “white” job group. However, note that none of these are in qualified comparison groups since there are only 20 employees in the group (based on OFCCP’s 30/5 rule).
