Smith School’s Bjarnadóttir Earns Highest Icelandic State Honor for Research Impact

Margrét Bjarnadóttir, associate professor of Management Science and Statistics in the Decisions, Operations and Information Technologies department at the University of Maryland’s Robert H. Smith School of Business, was awarded the Knight’s Cross of the Icelandic Order of the Falcon on June 17, 2024, for her research and “transformative approach to pay equity.”

The Order of the Falcon, established in 1921, is the highest honor the Icelandic state can bestow upon individuals based on merit. Appointments are made based on nominations by the President of Iceland and a five-member council. The announcement cited Bjarnadóttir’s contributions to “innovation in the field of software in favor of equal pay policy.”

“I am first and foremost thankful for this honor, which I share with my academic collaborators and everyone who has played a role in bringing analytical approaches to pay equity, equipping HR and compensation professionals with the tools they need to drive change,” says Bjarnadóttir. “HR analytics is an exciting field to be in, and my journey does not end with pay equity; it is just the start.”

Over her career, Bjarnadóttir has conducted extensive research on algorithmic studies of demographic pay gaps, unintended consequences of pay gap legislation and potential remedies to address compensation inequities. She is also the co-founder of PayAnalytics, a compensation analytics software company that helps monitor and address demographic pay gaps.   

Her previous research, co-authored with fellow PayAnalytics co-founder David Anderson and David Ross, professors at Villanova University’s Villanova School of Business and the University of Florida’s Warrington School of Business Administration, respectively, details the company’s innovative algorithm.

The paper, published in Production and Operations Management, shares that the algorithm measures whether an employer has a pay gap and suggests salary adjustments to close it by studying how pay is determined in various contexts. Factors such as experience, merit and job titles are considered based on race, gender or other demographic groups.

In turn, the researchers correct pay structure biases and target areas within a company exhibiting high unequal pay levels. Raises are then distributed to employees facing inequities while stifling opportunities for wage compression.

“To build the equitable workplaces of tomorrow, we need to ensure equal access to opportunities and promotions and foster an inclusive environment where every employee can thrive,” Bjarnadóttir says. “I believe analytics and recent developments in AI will play a big role in ensuring workplace equity — and I am excited to conduct innovative research and develop practical approaches in this area.”