2. OVERVIEW:
Given the analysis above, it was observed that there is a total of 301 employees consisting
of 174 active employees, 88 employees who voluntarily terminated their employment, 14
employees both terminated their employment for a cause and went on a leave of absence
respectively while the least (4) persons are expected to resume employment on a future
date at the time of preparing this report.
The organisation’s average pay rate is $30.72. It currently has 24 positions across all six
(6) Departments with the production department having the highest number of staffs
(207) which is higher than the combination of all other 5 departments. Thus, indicating
that the organisation is likely into manufacturing or production. We can also deduce that
the organisation is one which embraces cultural diversity in the workplace and
demonstrates equal recruitment opportunities as we observed that there exist 6 races in
the total workforce with the white race topping the chart at 63%
Furthermore, we observed that there is no discrimination in terms of marital status as we
noted a close gap between the single and married staff which accounted for 42% and 40%
respectively of the total workforce. The organisation has 22 employee sources with the
top three being Employee Referral, Diversity Job Fair and Search Engine which has 31
counts, 29 counts and 25 counts respectively. Majority of the total employees have a US
citizenship -284 staff (94.35%) while only 4 staff (1.33%) have Non-US citizenship.
Examining the Employment status, the analysis identified that only 14 staff terminated
their employment due to a cause. However, further insights reveal that this had nothing
to do with their performance score as they were mainly (5) staff in the “Fully meet”
performance score category and only 4 under the 'Needs improvement' performance score.
This suggests that the major reason for employment termination is not mainly as a result
of weak performance on the part of the employees.
In terms of active employees, we observed that the average pay rate is $32.98. 47.7% of
active employees are single, 64.37% are of the white race, 60.91% dominates the
production department and are majorly within the 25-39yrs age group which happens to
be the highest number of the age group in the organisation. The workforce consists of
58% of females and 42% males. Unsurprisingly female employees have the highest
number for each of the performance score with the exclusion of the 'Needs improvement'
performance score. This could be due to the fact that they dominate the organisation.
However, this does not reflect in their average pay rate as we observed that they are paid
lesser than their male counterparts despite their high performance. This strongly indicates
that there exists a gender pay gap or discrimination in the organisation. The HR is
therefore advised to ensure measures are put in place to implement policies that foster
gender pay equality.
The key indicator areas examined are as follows with more emphasis will be placed on
employees who are actively employed;
▪ Employee Marital Status
▪ Performance Score by Sex
▪ Age Profile
▪ Racial and Gender Distribution
▪ Employee Citizenship Status
▪ Average Pay by Race and Sex
▪ Pay rate by Position
▪ Pay rate by Department
3. ▪ Employee Marital Status:
In terms of active employees, it was observed that 83 employees (47.7%) are single while
61 employees (35.06%) are married, coming in the least are employees who are widowed
with a total number of 6 staff (3.45%). Further analysis reveals that 70count and 50 counts
out of the single employees are female and male respectively.
▪ Performance Score by Sex:
The analysis indicates that the female gender had the highest scores in all categories of
employee performance score compared to their male counterparts. (e.g. Fully meets- 61
females & 43 males, Exceeds- 11 females & 7 males etc) except for the 'Needs
Improvement' performance score which was led by the male gender. We, however,
observed that there was an equal performance by both genders in the category of – “90-
days meet’’ where both genders had an equal score of 8.
▪ Age Profile
From the analysis, we observed that employees within the 25-39yrs age group have the
highest population in the Organisation with 114 counts out of the 174 total active
population. This was closely followed by employees within the age group of 40-49yrs with
41 counts and they are mainly dominated in the IT and Production Department
respectively. Ranking the least are the employees aged 60 years and above who are only
3 in numbers and they are all in the Executive office, production and sales Department.
Based on the analysis, we can say that the HR target employees (those they mainly recruit)
are those within the 25-39yrs age group.
▪ Racial and Gender distribution:
The analysis shows that the white race is the most populace race in the organisation with
over 80 counts, followed by the black African American race while the Hispanic race is the
least with only 3 counts. In terms of gender analysis, the analysis shows that the female
gender dominates the male gender in all races except the American Indian and Hispanic
race. while the female gender dominates. This indicates that the organisation is
predominantly dominated by white female employees.
▪ Employee Citizenship status:
Overall, about 95% of the employees have US citizenship with only 4% having Non-US
citizenship. In terms of active employees, 95.4% have US citizenship. Indicating that the
organisation has a preference for employees having a US citizenship.
▪ Average Pay rate by Race and Sex:
Examining the active employees, it was noted that the male gender has the highest
average pay rate when compared to their female counterparts except for the Asian race
where female employees earn higher than their male counterpart. This surprisingly is in
contrast with previous observations where we noted the high performance of the female
gender in ratio to the male gender. The analysis highlights that White female employees
earn $31.15 while their male counterparts earn about $34. This is below the average pay
rate in the organisation ($32.98). The highest gender gap was observed within the
American Indian race where female employees within that race earn $23 while their male
counterparts earn $36, thus a $13 pay gap exists between the two genders. This is a
pointer to the fact that female employees’ performances are being undermined and thus
indicates that there exist a gender pay currently in the organisation.
In addition, we observed that there is a racial discrimination pay gap amongst the active
employees. The average pay rate for black or African race is $50 which is higher than their
white counterparts who earn $45 even though they are the most populace race in the
4. organisation. Surprisingly, employees who are of Hispanic race earns $53 which makes
them the highest paid race even though it is the least race (only 4 counts)
▪ Average Pay rate by Position:
This analysis indicates how much the employees earn across all positions in the
organisation. Leading the chart is the President position with an average pay of $80.00,
closely followed by the CIO and IT director who both earns $65. Emerging at the bottom
of the ladder are the Administrative assistant and Production Technicians 1 who
individually earns an average pay rate of $21 and $19 respectively.
▪ Average pay rate by Department:
The highest average pay rating department is the Executive office Department with an
average pay rate of $80. Further insights indicate that the $80 average pay rate is
currently being earned by the President and CEO, a married man who is within the 60
years and above age group. This is obviously as a result of the President and CEO’s plenty
of work experiences and virtue of the position held as well.
The sales Department comes in 2nd
place with an average pay rate of $55.52. Majority of
the staff in this Department are single, within the 25-39years age and out of which 22 of
them are in the ‘fully meet’ performance scores category. This shows the department is
made up of energetic and result-driven staff and thus explains the reason for having a
higher average pay rate when compared to other Departments.
Recommendation:
1. Having noted the existence of a gender pay gap in the organisation (a situation
whereby female employees earn $29.12 on average and their male counterparts
earns $32.91) despite the female employees being the dominant gender and
topping almost all performance scores categories. It is highly recommended that
the HR implement policies eradicating the pay gap and embracing gender pay
equality in the organisation.
2. The HR should endeavour to reward in Production Department e.g. payment of
performance bonus and possibly increase their salary as they consistently deliver
high performance than other Department to avoid vast resignation in future as a
result of dissatisfaction in their pay rate.
3. The HR should also consider recruiting staff through other sources such as Internet
searches or career builder for instance to avoid cases of conflicts of interest in
future by employee referrals sources.