The Equal Opportunities Commission Equal Pay for Work
- Slides: 17
The Equal Opportunities Commission Equal Pay for Work of Equal Value 18 th March 2000 Aon Consulting HK Ltd
The HR Perspective by Patrick Maule
Is there a problem? 3
Is it a big problem? • On the whole HK has a pretty good record of equal pay for equal jobs • amongst female stereotyped jobs almost certainly there will be some pay inequality. * 4
Some discrimination may occur by means of job classification Male Title Salesman Administrator Chef Technician Female title Shop assistant Secretary Cook Operator * 5
The question is therefore:
How would we safeguard against unequal pay for work of like value • Needs an objective method of job evaluation • ideally it needs a universal method of evaluation • need to identify objective measurement criteria • need skilled people to undertake it • process needs to be free of sex bias at all stages • need great wisdom and skill in applying it * 7
Job Evaluation Why do we currently have job evaluation • Mainly used as basis of establishing fair pay structure and • for comparing (benchmarking) salaries company to company • helps define job grades • helps cluster jobs of similar “size” into the same pay range • is a necessary tool for companies who want 8 open and objective compensation system *
Job Evaluation in HK • There is no clear data on the extent to which HK companies adopt job evaluation techniques • However, IHRM Survey of HR practices in HK (1998) revealed: – JE accounted for 3. 4% of time spent by HR practitioners (13 th item out of 16) – JE ranked as 10 th most important out of 15 items in last 3 years – JE ranked 18 th most important out of 25 in next 9 3 years *
Job Evaluation Common systems of JE: – Weighted factor points analysis eg Hay system – Paired comparison – Whole job ranking • all depend on written job descriptions • all have set of rules or scoring methods • all require lots of personal judgement * 10
The opportunities for sex bias • The identification of the factors in the analysis – eg sustained physical effort, working conditions, exposure to hazards • • • weighting between factors definitions of the factors scores assigned to each level number of levels hence the steps in scores maintenance procedures cont* 11
The opportunities for sex bias • identification of benchmark jobs • selecting grade boundaries • dealing with boundary scores • red circling • sore thumbing • appeals * 12
Potential impact of the legislation • Companies without JE would be particularly exposed to being challenge • Implementing a sufficiently thorough JE system is major undertaking • Ensuring there is no bias in the system is even more complex • Very few companies use JE at the moment • Responsible employers may feel forced to do it • Others would prefer to risk prosecution 13*
Potential impact of the legislation • In an environment where the general practice is not to have HR let alone JE it is unlikely to make much difference • once you evaluate jobs far bigger problems of internal anomalies will appear • it’s a very sophisticated tool • it would be a “wind fall” to consultants and a nightmare to employers * 14
There are more important HR issues that need to be tackled first • • the need for better/more training need for greater management skills protection from unfair dismissal inequitable salaries & closed systems of determining salaries • favouritism & nepotism • bad working conditions • health & safety in the workplace * 15
There are more important Female issues that need to be tackled • Glass ceilings • Lack of objective selection for promotion • Male dominated management style – behaviour is interpreted in male way – alien/hostile environment for women – if adopt same style, criticised by both men and women • Lack of real partnership in developing the next generation • Whilst need laws to support change, they cannot force changes in such deep rooted issues *16
Conclusion On a cost/benefit analysis basis: Ultimately, those who believe they are underpaid have the option to change employer 17
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