Salary Survey
A pay survey is the annual, legally required analysis of wages that all employers in Sweden are required to conduct under the Discrimination Act. The purpose is to identify, address, and prevent unjustified pay disparities between women and men. For employers with at least ten employees, the review must also be documented in writing.
Here's How a Salary Survey Works
A proper salary survey is conducted in a number of clear steps:
- Review salary policies: Review the company's pay and employment terms and assess whether they are gender-neutral.
- Group tasks: Identify which jobs are similar or equivalent based on requirements for knowledge, responsibility, and effort.
- Analyze differences: Compare wages within and across groups and identify gender-based differences.
- Explain or correct: Unjustified differences must be corrected, normally within three years, while justified differences must be supported by a rationale.
Common Challenges in Pay Surveys
- Inadequate job evaluation: Grouping jobs into ”equivalent” categories requires a systematic approach—yet many people make subjective and difficult-to-justify judgments in this regard.
- Poor data quality: Incomplete or inconsistent payroll data makes the analysis unreliable.
- The connection to salary setting: The survey will become a standalone document rather than being integrated with the salary review and incentive program.
- Lack of time and expertise: The annual survey competes with day-to-day HR operations for time and expertise.
Here's How an Interim HR Consultant Can Ensure a Thorough Assessment
Pay surveys are a recurring legal requirement and part of the daily routine for experienced interim HR consultants.
- Proven methodology: One interim HR resource introduces structured methods for job evaluation and analysis.
- Objective review: An external party can review the pay structure without any internal ties.
- Bridge to the strategy: One HR Business Partner links the assessment to the compensation policy and salary reviews so that it has a real impact.
- Fast delivery: Interim Search's process ensures that you have the right talent in place within 48 hours—which is invaluable when a deadline is approaching.
Frequently Asked Questions About Salary Surveys
How often must a pay survey be conducted?
Under the Discrimination Act, all employers are required to conduct a pay survey every year. Employers with at least ten employees are also required to document this process in writing.
What counts as equivalent work?
Jobs are considered equivalent if, based on an overall assessment of the requirements in terms of knowledge and skills, responsibility and effort, as well as working conditions, they can be deemed to be of equal value—even if the job duties themselves are completely different. It is this comparison between different occupations that is often the most difficult part.
What happens if we don't conduct a salary survey?
An employer who fails to fulfill this obligation may be ordered to pay a penalty by the Discrimination Ombudsman and the Anti-Discrimination Board. In addition to the legal risk, failure to take action means that unjustified pay disparities are likely to persist, which harms both employees and the employer’s brand.
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