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Equity in pay May 2011
 

Equity in pay May 2011

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Half day interactive open workshop in Toronto on pay equity.

Half day interactive open workshop in Toronto on pay equity.

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    Equity in pay May 2011 Equity in pay May 2011 Presentation Transcript

    • Equity in pay
      by Toronto Training and HR
      May 2011
    • Contents
      3-4 Introduction to Toronto Training and HR
      5-10 Definitions
      11-12 Drill A
      13-17 Equity theory, intrinsic and extrinsic considerations
      18-20 Pay equity law in Quebec
      21-23 Steps of a typical pay equity exercise
      24-26 Gender pay gap
      27-28 What is a job class?
      29-32 Male or female job classes
      33-36 Is your employer at risk of a pay equity claim?
      37-38 Drill B
      39-48 Case studies
      49-50 Conclusion and questions
      Page 2
    • Page 3
      Introduction
    • Page 4
      Introduction to Toronto Training and HR
      Toronto Training and HRis 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
    • Page 5
      Definitions
    • Page 6
      Definitions 1 of 5
      What is PAY EQUITY?
    • Page 7
      Definitions 2 of 5
      Skill
      Effort
      Responsibility
      Working conditions
    • Page 8
      Definitions 3 of 5
      FACTS
      Pay 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.
    • Page 9
      Definitions 4 of 5
      FACTS
      Under 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.
    • Page 10
      Definitions 5 of 5
      FACTS
      Where 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.
    • Page 11
      Drill A
    • Page 12
      Drill A
    • Page 13
      Equity theory, intrinsic and extrinsic considerations
    • Page 14
      INTRINSIC OUTCOMES
      Enjoyment
      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
      Equity theory, intrinsic and extrinsic considerations 1 of 4
    • Page 15
      EXTRINSIC OUTCOMES
      Pay
      Health care benefits
      Retirement benefits
      Good work relationships
      Friendships
      Skills development
      Career guidance
      Mentoring opportunity
      Equity theory, intrinsic and extrinsic considerations 2 of 4
    • Page 16
      INTRINSIC INPUTS
      Commitment
      Dependability
      Work ethic
      Creativity
      Motivated
      Ability to mentor
      Cooperation
      Values
      Equity theory, intrinsic and extrinsic considerations 3 of 4
    • Page 17
      EXTRINSIC INPUTS
      Education
      Credentials
      Training
      Time
      Professional connections
      Seniority
      Equity theory, intrinsic and extrinsic considerations 4 of 4
    • Page 18
      Pay equity law in Quebec
    • Page 19
      Pay equity law in Quebec 1 of 2
      Bill 25
      Filing requirements and onus of proof
      Organizations employing 10 to 49
      Organizations employing 50 to 99
      Organizations employing 100 plus
      Reference period
      Definition of an enterprise for purposes of pay equity
      Counting employees
    • Page 20
      Pay equity law in Quebec 2 of 2
      Pay equity plan
      Study to establish salary adjustments
      Deadlines
      Classes of employees
      Value of dissimilar jobs
      Salary adjustment payments
      Maintenance of pay equity
      Non-compliance
    • Page 21
      Steps of a typical pay equity exercise
    • Page 22
      Steps of a typical pay equity exercise 1 of 2
      Determine the number of employees
      Determine 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 classes
      Choose the method and tools to evaluate the job classes
    • Page 23
      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 classes
      Determine the value of differences in compensation
      Define the terms and conditions of payment of compensation adjustments
      Post the results
      Pay adjustments in compensation
      Maintain pay equity
    • Page 24
      Gender pay gap
    • Page 25
      Gender pay gap 1 of 2
      MAIN FACTORS INFLUENCING
      Human capital differences
      Part-time working
      Travel patterns
      Occupational segregation
      Workplace segregation
    • Page 26
      Gender pay gap 2 of 2
      Is it narrowing in Canada?
    • Page 27
      What is a job class?
    • Page 28
      What is a job class?
      ALL the following criteria must be met:
      The positions must have similar functions
      or responsibilities;
      The positions must require similar qualifications;
      and,
      The positions must have equal remuneration,
      or be based on the same salary scale.
    • Page 29
      Male or female job classes
    • Page 30
      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?
    • Page 31
      Male or female job classes 2 of 3
      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 and
      45% 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%.
    • Page 32
      Male or female job classes 3 of 3
      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.
    • Page 33
      Is your employer at risk of a pay equity claim?
    • Page 34
      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?
    • Page 35
      Is your employer at risk of a pay equity claim? 2 of 3
      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?
    • Page 36
      Is your employer at risk of a pay equity claim? 3 of 3
      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?
    • Page 37
      Drill B
    • Page 38
      Drill B
    • Page 39
      Case study A
    • Page 40
      Case study A
    • Page 41
      Case study B
    • Page 42
      Case study B
    • Page 43
      Case study C
    • Page 44
      Case study C
    • Page 45
      Case study D
    • Page 46
      Case study D
    • Page 47
      Case study E
    • Page 48
      Case study E
    • Page 49
      Conclusion & Questions
    • Page 50
      Conclusion
      Summary
      Questions