the business case for pay equity · the business case for pay equity. presented by: wendy glaser,...
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The Business Case for Pay EquityPresented by: Wendy Glaser, CHRL and Fred Blanchette, CRHA
2The Business Case for Pay Equity
5The Business Case for Pay Equity
6The Business Case for Pay Equity
468 000 vacant positions (+15,1%)
700 000 jobs to fill in Quebec by 2020
Unemployment rate below 6%
149,600 jobs to fill in Ontario
Job vacancies up by 12% (20,000) in Ontario
7The Business Case for Pay Equity
9The Business Case for Pay Equity
3 introductory questions:
1)What is your level of mastery of the Pay Equity requirements?
2)Have you ever participated in a Pay Equity Exercise?
3)Is your company compliant?
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OntarioPay Equity Act (1987)Public and Private sector employers
QuebecLoi sur l’équité salariale (1996)Public and Private sector employers
Other provinces (MB, PEI, NB, NS)Public sector employers only
Federal Pay Equity is next!
*Image of Canada taken from; www.educanada.ca
*Toronto Star
11The Business Case for Pay Equity
Steps to achieve Pay Equity
Data
Collection
Identify
Job
Classes
Determine
Gender
Evaluate
Job
Classes
Determine
the value
of each
job class
Calculate
Job Rate
Analyze
Salary
Gaps
Develop
a
Plan
Maintain
Pay
Equity
data
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Making the business case for Pay Equity
~6 reasons WHY~
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Compliance with the Law!
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Knowledge of your compensation practices
• Better decision-making when determining wages
• Ability to predict labor costs
• Performance vs Value vs Compensation
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Knowledge of your compensation practices
(continued)
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Insight into the value of employees’ jobs
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Starting point for a compensation Strategy and Structure
Recruitment
Retention
Mobility
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“Our pay equity exercise was very helpful organization wide. I first
thought it was just for compliance purposes, but quickly found we have
uses in many other contexts including our current exercise of
establishing a salary structure with market rates for core positions and
analyzing individual positioning. I’m looking forward to our new salary
policy, structure and bands!”
- actual real client
The Business Case for Pay Equity
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Improved organizational climate
Why is Internal Equity important?• Jobs with similar requirements are compensated equally
• Fair compensation to employees based on level of
responsibility and complexity of tasks not gender
• Reduces dissatisfaction and internal conflicts
• Enables sound management of payroll
• Allows for fair wage management based on the business
reality of the organization
• Allows wage classes based on objective methodology
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Improved company brand image, loyalty
and engagement
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• Review Pay Equity data yearly• Analyze, review and amend your compensation practices• Reduce discretionary/inconsistent decisions • Budget accordingly
• Put yourself back in control of your compensation practices
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Pay Equity as a Strategy?See a return on your investment
Save time by applying the same system across divisions
Use the right tools for the job
Implement a control process to limit your risks
Recap1. Legal compliance2. Knowledge of your compensation practices3. Insight into the value of employees’ jobs4. Starting point for a compensation strategy and structure5. Improved organizational climate6. Improved company brand image, loyalty and engagement