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Compensation

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by

Ursula Carey

on 30 October 2012

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Transcript of Compensation

Pay Equity The End Introduction Bell Canada: Analysis Legal Cases Our Recommendations AGENDA What is Pay Equity? Q&A Thank you for listening! Recommendations Pay Equity Legislation - It's fundamental human right - Equal pay for work of equal value - Canadian Human Rights Act, Section 11

- The Equal Wages Guidelines

- Canada Labour Code, Part III,
Section 249 Permissible Differences 1) Formal seniority system
2) Formal merit system
3) Skills shortage
4) Red-circling
5) Temporary employee training or development assignment SKIT - Union filed a complaint to the CHRC that there was wage discrimination between male and female employees who perform work of equal value
- A joint study revealed that women were being paid $1.99 - $5.35 less than male dominated jobs
- Dispute was settled in 2006 - Bell agreed to a settlement of $104 million to the thousands of Bell Canada operators (mostly women) Legal Case The wage discrimination can lead employee reward dissatisfaction due to 3 of the four factors:
1)Perceived inequity
2)Relative deprivation
3)Lack of organizational
justice Employee Reward Dissatisfaction - Employees will either attempt to increase their rewards or reduce their contributions Experiment & Research Study - Professor Pressman conducted research which was based on an experimental study called the 'ultimatum game'

- Mr. Pressman identified a psychological effect of pay inequality

- Research findings: pay inequity lowers productivity and reduces efficiency of affected employees - If females were aware this unfair division of pay from the beginning, they would potentially reject Bell’s job offer
-When they did find out they then logged a complaint with the union and the CHRC
- Even though they may no longer reject Bell by quitting, they can reject the offer in less overt forms (i.e. not producing quality work)
- Employees may feel undervalued which can lead to a decrease in morale and may exit the organization.
- If this occurs, Bell will have to face the costs of losing valuable human capital and endure an increase in recruitment/training expenses
- This in turn affects the overall efficiency and productivity of the Bell How this Issue
Relates to Bell What is Pay Equity? - Job evaluation
(point system method) Recommendations - Bell should use the resources offered by the government

- Use of Human Resources and Skills Development Canada

- Ontario Pay Equity Commission POLL TIME - Use the point system to compare & evaluate each job using the four compensable factors
- Bell can hire an external consultant or use an `off the shelf` package if they do not have the expertise to do this in-house
- Compare jobs within the establishment in order to identify if any wage gaps exist
- Determine if the wage gap is due to permissible reasons Recommendations Recommendations Recommendations - Develop a job evaluation committee
- Determine the establishment
- Conduct a job analysis
- Identify all the different occupational groups
- Determine female/male job classes What is Pay Equity?
Pay Equity Legislation
Skit
Legal Cases
Analysis of Pay Equity at Bell Canada
Recommendations - Communicate the results and implement wage adjustments
- Bell must periodically audit and adjust their pay equity plan when needed
- Ensure there is an appeal process for employees so they can file a complaint and resolve the issue if they believe a compensation decision is unfair - This will determine the magnitude of the existing wage gap and gain internal pay equity among all employees by eliminating the identified wage gap By: Ursula Carey, Azam Chaudhry, Padmini Govinda, Sumeet Opel, Iffat Razzaque http://www.polleverywhere.com/multiple_choice_polls/LTEzMDQxMzU3MzE Get your cell phones and computers ready for the interactive poll!

1) Text your answers to 37607 (its free!)

2) Sumbit your answer online at www.PollEv.com
Full transcript