1

The Business Case for Pay EquityPresented by: Wendy Glaser, CHRL and Fred Blanchette, CRHA

2The Business Case for Pay Equity

5The Business Case for Pay Equity

6The Business Case for Pay Equity

468 000 vacant positions (+15,1%)

700 000 jobs to fill in Quebec by 2020

Unemployment rate below 6%

149,600 jobs to fill in Ontario

Job vacancies up by 12% (20,000) in Ontario

7The Business Case for Pay Equity

9The Business Case for Pay Equity

3 introductory questions:

1)What is your level of mastery of the Pay Equity requirements?

2)Have you ever participated in a Pay Equity Exercise?

3)Is your company compliant?

10The Business Case for Pay Equity

OntarioPay Equity Act (1987)Public and Private sector employers

QuebecLoi sur l’équité salariale (1996)Public and Private sector employers

Other provinces (MB, PEI, NB, NS)Public sector employers only

Federal Pay Equity is next!

*Image of Canada taken from; www.educanada.ca

*Toronto Star

11The Business Case for Pay Equity

Steps to achieve Pay Equity

Data

Collection

Identify

Job

Classes

Determine

Gender

Evaluate

Job

Classes

Determine

the value

of each

job class

Calculate

Job Rate

Analyze

Salary

Gaps

Develop

a

Plan

Maintain

Pay

Equity

data

12The Business Case for Pay Equity

Making the business case for Pay Equity

~6 reasons WHY~

13The Business Case for Pay Equity

Compliance with the Law!

14The Business Case for Pay Equity

Knowledge of your compensation practices

• Better decision-making when determining wages

• Ability to predict labor costs

• Performance vs Value vs Compensation

15The Business Case for Pay Equity

Knowledge of your compensation practices

(continued)

16The Business Case for Pay Equity

Insight into the value of employees’ jobs

17The Business Case for Pay Equity

Starting point for a compensation Strategy and Structure

Recruitment

Retention

Mobility

18

“Our pay equity exercise was very helpful organization wide. I first

thought it was just for compliance purposes, but quickly found we have

uses in many other contexts including our current exercise of

establishing a salary structure with market rates for core positions and

analyzing individual positioning. I’m looking forward to our new salary

policy, structure and bands!”

- actual real client

The Business Case for Pay Equity

19The Business Case for Pay Equity

Improved organizational climate

Why is Internal Equity important?• Jobs with similar requirements are compensated equally

• Fair compensation to employees based on level of

responsibility and complexity of tasks not gender

• Reduces dissatisfaction and internal conflicts

• Enables sound management of payroll

• Allows for fair wage management based on the business

reality of the organization

• Allows wage classes based on objective methodology

20The Business Case for Pay Equity

Improved company brand image, loyalty

and engagement

21The Business Case for Pay Equity

• Review Pay Equity data yearly• Analyze, review and amend your compensation practices• Reduce discretionary/inconsistent decisions • Budget accordingly

• Put yourself back in control of your compensation practices

22The Business Case for Pay Equity

Pay Equity as a Strategy?See a return on your investment

Save time by applying the same system across divisions

Use the right tools for the job

Implement a control process to limit your risks

Recap1. Legal compliance2. Knowledge of your compensation practices3. Insight into the value of employees’ jobs4. Starting point for a compensation strategy and structure5. Improved organizational climate6. Improved company brand image, loyalty and engagement