The annual salary audit of Beta Technologies found: 1) The company's workforce is 51.92% female and 48.08% male, indicating no gender discrimination. 2) Most employees (67.3%) are under 45, with the largest group (21.15%) between 32-38. 3) Over half (53.85%) of employees had 0-5 years prior experience, consistent with a younger workforce. 4) Salary increases with age and experience, with most (78.85%) earning under $55,000 and only 1.92% over $95,725. The audit found Beta Technologies upholds fair hiring and compensation practices without discrimination by

1. Memorandum
To: Dr. Patricia Kelley
CC: Human Resources Department
From: Asia Bulger, Human Resources Director of Beta Technologies, Inc.
Date: September 30, 2010
Re: Annual Salary Audit of Current Employees
INTRODUCTION
Beta Technologies, Inc recently underwent an annual audit which involved a
detailed examination of the company’s hiring statistics. The audit studied fifty-two
of the company’s full-time employees and examined several key variables: age,
gender, salary, and prior work experience. The audit also sought to determine if
there is a relationship between age and salary.
KEY POINTS
 Beta Technologies, Inc does not engage in gender discrimination among
applicants

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 Beta Technologies, Inc must make certain not to appear to engage in age
discrimination
 There is a positive relationship between prior work experience and current
salary
 There is a positive relationship between age and current salary of the
employees studied
METHODOLOGY
To facilitate the analysis of Beta Technology Inc’s hiring practices, a random sample
of fifty-two full-time employees was chosen. Data such as information provided by
the employees upon being hired was collected from each employee within the
selected sample group, and additional information regarding current salary figures
was gathered from personnel records. Frequency distributions were run for gender,
age, salary, and prior work experience. Frequency distribution tables were created
following data collection. These tables categorized and separated the observations
for each variable into Bin. The total number of observations in a bin represents the
frequency in that particular variable. The above mentioned categories are then used
in the analysis of information and development of results. The variables must be in
numerical form in order to accurately run frequency distributions. In this particular
analysis, male will be represented as 0 and female as 1 for gender. After frequency
distribution tables are produced, the information can be visually displayed into
charts. The bar charts are referred to as histograms and provide a graphical
representation of the variable’s frequency. After analyzing the frequency of the
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variables, a scat plot will be produced in order to determine if there is a relationship
between age and salary. Scatter plots are graphical representations that plot all
observation in the variable and demonstrate positive or negative relationships
between variables.
RESULTS
The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency
that was created in order to enforce legislation that protects individuals and groups
from discrimination within the workplace. Based on the outcome of the audit, there
is no compelling evidence that suggests that Beta Technologies, Inc engages in
gender discrimination in terms of its hiring practices. While the underrepresentation
of women in the workplace has historically been a prominent issue among many
companies, it is apparent that Beta Technologies Inc does not discriminate on the
basis of gender in its hiring processes. In fact, women make up more than half
(51.92%) of the company’s workforce while men represent less than half (48.08%)
of the company’s workforce.
Table 1
GENDER PERCENT OF WORKFORCE
MALES 48.08%
FEMALES 51.92%
Source: Author's Calculation
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The audit also studied age as a variable in examining the company’s hiring statistics.
The audit discovered that Beta Technologies, Inc is largely comprised of a younger
workforce. The majority (67.3%) of full-time current employees are under the age
of forty-five and most (21.15%) of the employees within that age range fall between
the ages of thirty-two and thirty-eight. There appears to be a gradual decline in the
number of applicants hired over the age of forty-four.
Histogram of Age / Data Set #1
12
10
8
Frequency
6
4
2
0
23.07
29.21
35.36
41.50
47.64
53.79
59.93
Source: Author’s Calculation
In addition to studying the age of the employees hired, it is also important to
examine the prior work experience of those employees. The audit found that
slightly more than half (53.85%) of the employees hired had approximately zero to
five years of work experience prior to working for Beta Technologies, Inc. The lack
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of prior work experience is often a characteristic of younger workers, which
corresponds with the company’s predominately younger workforce. However, there
does not appear to be a cause for concern regarding the fairness of the company’s
hiring practices since there is no significant gap between these figures and they are
reasonably close in percentage.
Histogram of Prior_Experience / Data
Set #1
12
10
8
Frequency
6
4
2
0
23.07
29.21
35.36
41.50
47.64
53.79
Source: Author’s Calculation 59.93
Finally, a key variable on which much importance was placed is salary. A thorough
examination of the current salaries of the company’s employees further validated
that Beta Technologies, Inc is in compliance with EEOC legislation and does indeed
practice equality and justice in the workplace. The audit found that Beta
Technologies, Inc does not engage in sex-based wage discrimination since the
gender of the employee is not a determining factor in the calculation of their annual
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salary. Also, there is a logical correlation between salary and prior work experience.
The majority (78.85%) of the workers earn less than fifty-five thousand dollars per
year. This corresponds with the fact that the company’s workforce is largely
comprised of younger workers. Younger workers typically lack significant prior
work experience and usually accept entry level jobs which pay lower salaries than
intermediate and managerial level positions.
Histogram of Annual_Salary / Data Set
#1
12
10
8
Frequency
6
4
2
0
23.07
29.21
35.36
41.50
47.64
53.79
59.93
Source: Author’s Calculation
Another important question that the audit sought to answer was whether or not there
was a relationship between age and annual salary. According to the data collected,
as age increases so does salary. This suggests that there is a positive relationship
between age and salary. The audit also found that a very small percentage (21.14%)
of employees earned over fifty-five thousand dollars annually. In fact, only 1.92%
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of the workforce earned over ninety-five thousand, seven hundred and twenty-five
dollars per year. This percentage most likely represents the small group of older
workers. These figures also correspond with those of prior work experience under
the assumption that the older the employee, the more prior experience they will
have, and thus the higher the salary that they will earn.
Age vs Annual Salary
$120,000
$100,000
$80,000
$60,000
Annual_Salary
$40,000
$20,000
$0
0 20 40 60 80
Source: Author’s Calculation
CONCLUSIONS
In summation, Beta Technologies, Inc upholds fair hiring practices and does not
discriminate on the basis of gender or age. Conversely, the company’s workforce
consists predominately of younger workers; however, there is no compelling
evidence that indicates any form of age discrimination in the company’s hiring
practices. The company’s workforce is comprised evenly of males and females in
terms of gender, and both sexes are paid equally to perform similar job functions.
Also, employees with prior work experience are compensated accordingly.
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ATTACHMENTS
1. Frequency Distribution Histograms: Age, Salary, Prior Years Work
Experience
2. Frequency Distribution Table: Gender
3. Scatter plot: Age vs. Annual Salary
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