1. What is the Bonus Gap Calculation?

The Bonus Gap calculation measures the percentage difference between bonuses received by male and female employees. It's a key metric for identifying potential gender pay disparities in compensation structures.

2. How Does the Calculator Work?

The calculator uses the Bonus Gap formula:

Where:

• Male Bonus — Average or individual bonus amount for males
• Female Bonus — Average or individual bonus amount for females

Explanation: The equation shows what percentage less females receive in bonuses compared to their male counterparts.

3. Importance of Bonus Gap Analysis

Details: Analyzing bonus gaps helps organizations identify and address potential gender pay inequities, ensuring fair compensation practices and compliance with equal pay regulations.

4. Using the Calculator

Tips: Enter the male and female bonus amounts in dollars. The calculator will show the percentage gap between them.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a significant bonus gap?
A: Any gap above 5% may warrant investigation, though legal thresholds vary by jurisdiction.

Q2: Should we use average or individual bonuses?
A: For organizational analysis, use department or company averages. For individual comparisons, use specific amounts.

Q3: How often should bonus gaps be analyzed?
A: Annually at minimum, preferably after each bonus cycle.

Q4: What factors might explain a bonus gap?
A: Legitimate factors include role, performance, and tenure. Unexplained gaps may indicate bias.

Q5: How can we reduce bonus gaps?
A: Implement transparent bonus criteria, conduct regular pay audits, and provide unconscious bias training.