-
Coefficient of Variation (CV) – The HR Fairness Meter! ⚖️
Averages alone don’t always tell the truth. Two teams may have the same average salary or performance, but one could be far more consistent than the other. That’s where CV comes in .
✨ What it does:
CV shows the relative variability of data by comparing the spread (standard deviation) to the mean.
🔑 Why HR should care:
* Low CV → Stable, fair, and predictable outcomes.
* High CV → Big differences among employees → signals inequality or inconsistency.
👉 HR Use Case:
When comparing sales incentives:
* Region A: CV = 10% → Earnings are consistent across employees.
* Region B: CV = 45% → Wide differences, some earning much more than others.
💡 With CV, HR leaders can see beyond averages and uncover hidden fairness gaps in salaries, bonuses, or performance.
