Pay equity

							   Equity in pay



by Toronto Training and HR

        May 2011
           3-4      Introduction to Toronto
                    Training and HR
Contents   5-10
           11-12
                    Definitions
                    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
Introduction




     Page 3
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

                            Page 4
Definitions




    Page 5
         Definitions 1 of 5
What is PAY EQUITY?




                      Page 6
          Definitions 2 of 5
Skill
Effort
Responsibility
Working conditions




                     Page 7
           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 8
             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 9
            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 10
Drill A




  Page 11
Drill A




 Page 12
Equity theory, intrinsic
     and extrinsic
    considerations




          Page 13
 Equity theory, intrinsic and
extrinsic considerations 1 of 4
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

                       Page 14
 Equity theory, intrinsic and
extrinsic considerations 2 of 4
EXTRINSIC OUTCOMES
Pay
Health care benefits
Retirement benefits
Good work relationships
Friendships
Skills development
Career guidance
Mentoring opportunity


                    Page 15
 Equity theory, intrinsic and
extrinsic considerations 3 of 4
INTRINSIC INPUTS
Commitment
Dependability
Work ethic
Creativity
Motivated
Ability to mentor
Cooperation
Values


                    Page 16
 Equity theory, intrinsic and
extrinsic considerations 4 of 4
EXTRINSIC INPUTS
Education
Credentials
Training
Time
Professional connections
Seniority




                    Page 17
Pay equity law in Quebec




          Page 18
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 19
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 20
Steps of a typical pay
   equity exercise




         Page 21
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 22
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 23
Gender pay gap




     Page 24
    Gender pay gap 1 of 2
MAIN FACTORS INFLUENCING
Human capital differences
Part-time working
Travel patterns
Occupational segregation
Workplace segregation




                 Page 25
     Gender pay gap 2 of 2
Is it narrowing in Canada?




                    Page 26
What is a job class?




        Page 27
       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 28
Male or female job classes




           Page 29
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 30
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 31
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 32
Is your employer at risk of
    a pay equity claim?




            Page 33
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 34
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 35
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 36
Drill B




  Page 37
Drill B




 Page 38
Case study A




    Page 39
Case study A




    Page 40
Case study B




    Page 41
Case study B




    Page 42
Case study C




    Page 43
Case study C




    Page 44
Case study D




    Page 45
Case study D




    Page 46
Case study E




    Page 47
Case study E




    Page 48
Conclusion & Questions




         Page 49
            Conclusion
Summary
Questions




               Page 50