Pay Equity is “equal pay for work of equal value”. … The purpose of pay equity is to address gender discrimination in compensating female job classes. If jobs are of equal or comparable value, then female jobs must be paid at least the same as male jobs.
Similarly one may ask, how do you show pay equity?
To successfully perform a pay audit or pay equity analysis within your organization, follow these seven steps:
- Plan early and plan well. …
- Research your pay policies. …
- Gather the data. …
- Compare the work of employees with similar positions. …
- Analyze the data. …
- Assess whether pay differences are legally justified.
Also to know is, what is a pay equity issue?
“Pay equity” is an umbrella term that includes issues related to the fairness of compensation paid by employers to their employees for performing comparable work, without regard to gender or race or other categories protected by law (such as national origin or sexual orientation).
What is meant by pay equity?
So what is pay equity? In general, it means compensating employees the same when they perform the same or similar job duties, while accounting for other factors, such as their experience level, job performance and tenure with the employer, explains Karen Denney, an attorney with Haynes and Boone in Fort Worth, Texas.
What is pay equity and why is it important?
Pay equity is a method of eliminating gender and race discrimination when establishing and maintaining wages. Still today, many workers are separated into various jobs which are historically underpaid because of their gender or race.
What is the difference between equal pay and pay equity?
Equal pay compares the pay of incumbents in the same or very similar jobs. Pay equity compares the value and pay of different jobs, such as nurse and electrician. In Canada, either men or women can complain that their work is undervalued.
What is the importance of pay equity?
Pay equity is important because it addresses the undervaluation of women’s work, which contributes to the gender wage gap. Jobs that are commonly held by women tend to be paid less than jobs commonly held by men – even when the work is comparable in value based on skill, effort, responsibility and working conditions.