equity in pay may 2011

Equity in pay

by Toronto Training and HR

May 2011

Contents3-4 Introduction to Toronto

Training and HR5-10 Definitions11-12 Drill A13-17 Equity theory, intrinsic and

extrinsic considerations18-20 Pay equity law in Quebec21-23 Steps of a typical pay equity

exercise24-26 Gender pay gap27-28 What is a job class?29-32 Male or female job classes33-36 Is your employer at risk of a pay equity claim?37-38 Drill B39-48 Case studies49-50 Conclusion and questions

Introduction

Introduction to Toronto Training and HR

• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden

• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR

are:- Training course design- Training course delivery- Reducing costs- Saving time- Improving employee engagement &

morale- Services for job seekers

Definitions

Definitions 1 of 5What is PAY EQUITY?

Definitions 2 of 5SkillEffortResponsibilityWorking conditions

Definitions 3 of 5FACTSPay Equity does not anticipate or guarantee an increase in pay for all job classes.Male jobs in a Bargaining Unit will not receive an increase as a result of Pay Equity.Pay Equity does not provide for internal equity.When a male comparator is identified, it does not mean that the male job is the “same” as the female job, but rather that the value of the jobs is relatively the same.

Definitions 4 of 5FACTSUnder Pay Equity, the rate of compensation for the female job class must be equal or greater than that of the identified male comparator.Male comparators and compensation practices within one organization may not be the same as those in another organization.Pay Equity does not take into consideration how well an individual performs their duties. It is in no way attached to performance or internal equity.Pay Equity recognizes only the Employer’s expectations and the requirements of the job as described in the job data.

Definitions 5 of 5FACTSWhere a female job class is currently paid higher than the identified male comparator, there will be no adjustment in pay.Pay Equity is not an exact science. The Pay Equity Commission has concluded that Bargaining Unit members of each joint committee, and the Employer representatives, are required only to be reasonable in the collection and evaluation of job content. They do not need to meet an exact standard.The Pay Equity Commission recognizes that a range of outcomes is possible.

Drill A

Equity theory, intrinsic and extrinsic

considerations

Equity theory, intrinsic and extrinsic considerations 1 of

4INTRINSIC OUTCOMESEnjoyment Challenging work Responsibility Meaningful work A sense of accomplishment A feeling of personal worth Job is useful to society Work-life balance Personal growth Trust


4EXTRINSIC OUTCOMESPay Health care benefits Retirement benefits Good work relationships Friendships Skills development Career guidance Mentoring opportunity


4INTRINSIC INPUTSCommitmentDependability Work ethic Creativity Motivated Ability to mentor CooperationValues


4EXTRINSIC INPUTSEducation CredentialsTraining Time Professional connections Seniority

Pay equity law in Quebec

Pay equity law in Quebec 1 of 2

Bill 25Filing requirements and onus of proofOrganizations employing 10 to 49Organizations employing 50 to 99Organizations employing 100 plusReference periodDefinition of an enterprise for purposes of pay equityCounting employees

Pay equity law in Quebec 2 of 2

Pay equity planStudy to establish salary adjustmentsDeadlinesClasses of employeesValue of dissimilar jobsSalary adjustment paymentsMaintenance of pay equityNon-compliance

Steps of a typical pay equity exercise

Steps of a typical pay equity exercise 1 of 2

Determine the number of employeesDetermine if more than one equity plan is required (applies only if 50+ employees)If a pay equity committee is required, determine its composition (applies only if 100+ employees)Identify the predominantly female and predominantly male job classesChoose the method and tools to evaluate the job classes

Steps of a typical pay equity exercise 2 of 2

1st posting in respect of job classes and evaluation process (applies only if 50+ employees)Evaluate the job classesDetermine the value of differences in compensationDefine the terms and conditions of payment of compensation adjustmentsPost the resultsPay adjustments in compensationMaintain pay equity

Gender pay gap

Gender pay gap 1 of 2

MAIN FACTORS INFLUENCINGHuman capital differencesPart-time workingTravel patternsOccupational segregationWorkplace segregation

Gender pay gap 2 of 2

Is it narrowing in Canada?

What is a job class?

What is a job class?

ALL the following criteria must be met:

The positions must have similar functionsor responsibilities;The positions must require similar qualifications;and,The positions must have equal remuneration,or be based on the same salary scale.

Male or female job classes

Male or female job classes 1 of 3

Is the job class traditionally associated to males or females due to occupational stereotypes? For example, even if your receptionist is male, it would still be considered a predominantly female job class.Are 60% of the employees in this job class male or female?


Is the representation of men or women in a job class significant compared to the rest of the company? For example, in a company mainly composed of women, the job class “assembler” includes 30 employees of which 55% are male and45% are female. Since a large proportion of the males in the company are included in this job class, it could be considered as predominantly male even if they aren’t represented at 60%.


Was a certain job class historically held by men or women? If, for example, a job class that is currently predominantly male has always been held by females, it could be considered as being predominantly female even if this is not indicative of the current situation.

Is your employer at risk of a pay equity claim?

Is your employer at risk of a pay equity claim? 1 of 3

Is pay equity between genders a consideration in your organization’s HR policy?Does your HR department understand the implications of current and future equal pay legislation?Is equality of pay embedded in the recruitment, retention and engagement policies of your organization, including the monitoring of starting salaries by gender?


Does your executive leadership team understand and support the concept of pay equity?Do your managers understand the concept and implications of equal pay?Does your organization provide guidelines to help managers in performance management discussions and in the allocation of pay rises and bonuses?Does your organization have a job evaluation scheme?


If challenged, could your organization justify gaps in base pay and annual bonus between a male employee and a female employee who have the same duties?Does your organization believe that its job evaluation scheme can manage the issue of equal pay?Does your organization have a process to deal with an equal pay claim?

Drill B

Case study A

Case study B

Case study C

Case study D

Case study E

Conclusion & Questions

Conclusion

SummaryQuestions

equity in pay may 2011

Business

specialist training

hrtoronto training

payby toronto training

training course delivery

training course design

pay equity law

pay equity claim

equity theory