Worker Pay and Benefits

Do Americans believe that corporations, regardless of size, sector or location, have an obligation to pay full-time employees a wage that covers all of their basic living expenses? 76% say yes. Americans shared with us that fair pay and benefits were critical characteristics of a JUST company. But what does fair pay look like? And what specific measures and data would help determine whether a company is doing a good job?


Components

Following are Components that Americans said were important in defining fair pay and benefits, and how we are measuring corporate performance for each of them. Click on the Component metrics to learn more.


Does Not Discriminate in Pay

Are men and women paid equally? According to our 2015 Survey, 89% of Americans shared with us that equal pay by gender was an important component of measuring JUST worker pay & benefits.

Legal Convictions In Employment Discrimination

Description: Number of severe and very severe cases (major scandals or systematic risk incidents) in influential and highly influential news sources occurring in the US over the past three years that pertain to discrimination in employment.

Data Source(s): RepRisk
Metric Type: Controversy
Geography: US
Unit of Measurement: Number

Commitment to Promoting Employment Equity

Description: Commitment to gender pay equity, where a credible commitment consists of a public statement, conducting a pay equity analysis, or acceding to the White House Pay Pledge.

Data Source(s): JUST analysis: Publicly available company documents; White House
Metric Type: Management
Geography: US
Unit of Measurement: True or False


Provides Time Off

Are employees able to take time off without losing income? Over 84% identified paid sick leave, vacation, holidays, and maternity & paternity leave as important to evaluating worker pay & benefits.

Paid Days Off

Description: Crowd-sourced average rating of a company’s Vacation & Paid Time Off and Maternity & Paternity Leave measured on a five-point scale by current and former employees of each company.

Data Source(s):Glassdoor
Metric Type: Crowd-sourced
Geography: US
Unit of Measurement: Score (0-5)

Commitment To Providing Time Off

Description: Company disclosure of its paid time off policy. Companies are scored from 0 to 10 and receive a 0 for no disclosure; 5 for boilerplate disclosure; 10 for detailed disclosure.

Data Source(s): JUST analysis: Publicly available company documents
Metric Type: Management
Geography: US
Unit of Measurement: Score (0, 5 or 10)


Sponsors Health Insurance

Does the company provide health insurance to its employees? In a 2016 survey, JUST Capital found that 83% of respondents believed that all US citizens should have access to basic medical coverage, regardless of whether or not they can pay for it themselves. Also, 96% of respondents to our 2015 survey felt that employer-sponsored health insurance (medical, dental, vision) was important to measuring JUST worker pay & benefits.

Benefits Quality

Description: Crowd-sourced average rating of a company’s benefits measured on a five-point scale by current and former employees of each company.

Data Source(s): Glassdoor
Metric Type: Crowd-sourced
Geography: US
Unit of Measurement: Score (0-5)

Commitment to Providing Health Insurance

Description: An assessment of compensation and benefits programs, including the breadth and scope of healthcare coverage programs (and excluding conventional compensation programs such as pensions, variable compensation, and employee stock ownership) offered by the company.

Data Source(s): MSCI
Metric Type: Management
Geography: US
Unit of Measurement: Score (1-10)


Pays Workers Fairly Compared to CEO

What’s the difference between the CEO’s and average worker’s pay? While Americans we surveyed believed that employees should be rewarded for their achievements and hard work, 79% of respondents to our 2015 survey said that CEO pay should be included in measuring JUST worker pay & benefits. Our surveys also found that Americans believe that CEO pay is outsized in comparison to the pay that most other workers received.

CEO To Median Worker Pay Ratio

Description:

  1. Reported CEO total compensation.
  2. Estimated median US employee compensation based on JUST Capital analysis of crowd-sourced compensation data by title and location, with Bureau of Labor Statistics (BLS) wage averages by job title and industry where crowd-sourced data is incomplete.  BLS job title distributions by industry are applied, and the median wage derived by company.

CEO to Median Worker Pay Ratio is calculated as follows: Data point 1 / Data point 2

Data Source(s): 

  1. Bloomberg
  2. JUST analysis: Glassdoor; Bureau of Labor Statistics

Metric Type: Performance
Geography: US
Unit of Measurement: Ratio


Helps Workers Prepare for Retirement

Does the company help its employees prepare for retirement? According to our 2015 Survey, Americans believed that providing 401k plans (90%), matching 401k savings (84%) and offering retirement planning advice (79%) should be included in measuring JUST worker pay & benefits.

401K Quality Assessment

Description: Quality of 401k plan based on cost, participation rates, salary deferrals and performance.

Data Source(s): Brightscope
Metric Type: Performance
Geography: US
Unit of Measurement: Score (0-100)


Pays a Living Wage

Is the company’s minimum wage high enough to reasonably cover costs for full-time workers? In a 2016 survey, JUST Capital found that 75% of respondents believed that corporations have an obligation to provide a living wage for all employees. Also, 95% of respondents to our 2015 survey felt that living wage was important to measuring JUST worker pay & benefits.

Employee Living Wage Ratio

Description: An estimate of the percentage of employees at each company making a living wage.  Wage, employment and job title distribution estimates for each company are calculated according to two separate methodologies, applied consistently within each industry, using a combination of Glassdoor salary respondent data, BLS national wage averages, data sourced from Dun & Bradstreet, Avention, Aggdata and publicly available company documents. Both methodologies use county-level living wage profiles generated by the MIT Living Wage Calculator for the average Census family: one adult working full-time, one adult working part-time, and one child.

Companies are scored by grouping living wage percentage estimates into 10% increments. A company receiving a score of 1 pays between 0% and 10% of its employees a living wage; 2 between 10% and 20%; 3 between 20% and 30%; etc.

Data Source(s): JUST analysis: Glassdoor; Bureau of Labor Statistics; MIT Living Wage Calculator; Dun & Bradstreet; Avention; Aggdata; C2ER; Publicly available company documents
Metric Type: Crowd-sourced
Geography: US
Unit of Measurement: Score (1-10)


Pays a Fair Wage for the Industry and Job Level

Does the company pay a fair wage compared to industry standards? Are people with the same job titles paid similar amounts? According to our 2015 survey, 92% of respondents said that reasonable wages based on qualifications and job level were important to measuring JUST worker pay & benefits.

Fair Pay Percent

Description: A comparison of wages using crowd-sourced wage reviews from Glassdoor, adjusted by a county-level purchasing power index and sorted into Glassdoor occupation code (GOC) classifications to allow cross-company comparisons by job title. Each company’s score is based on comparisons with peers by title and assigned a numerical score based on the highest real wage (for example a company with the highest real wage score out of 10 companies will get a 10 out of 10). Scores for each title are then summed and divided by the maximum possible total to produce a percentage that represents how each company compares to its industry group.

Data Source(s): JUST analysis: Glassdoor; H1B Visas; C2ER
Metric Type: Crowd-sourced
Geography: US
Unit of Measurement: Percent

Fair Pay Rating

Description: Crowd-sourced average rating of a company’s Compensation and Benefits measured on a five-point scale by current and former employees of each company.

Data Source(s): Glassdoor
Metric Type: Crowd-sourced
Geography: US
Unit of Measurement: Score (0-5)