HOW TO GET UP AND GET ON WITH IT

This article provides five basic points to help you come to grips with the concept of ‘Equal Pay for Work of Equal Value’; enable you to do a quick self-assessment of your business needs; understand the difference between fair and unfair pay differentials; help to motivate you to start the process; and giving basic outlines of the process of closing out unfair pay differentials. As with most major change, we tend to make a mountain out of a mole’s hill. Once we get up and get going, we realize that it is not the actual doing that is the difficult part, but it is making the mental shift that helps us kick into action.

1. What is Equal Pay for Work of Equal Value?

In a nutshell, this legislation requires that you examine and eliminate unfair pay differentials between similar roles in your business. The Employment Equity Amendment Act, places the onus on all employers, to examine all aspects of their pay (policies and practices), to ensure remuneration equity and eliminate unfair remuneration discrimination.

2. Quick Self-Assessment:

Think of the various roles in your organization. Now ask yourself the following three questions:

• Are there any jobs in your business, that are similar, or the same?
• If so, do the people in these jobs get paid differently?
• If so, can you justify (on fair and rational grounds) why they are being paid differently?

If you answered YES, YES and NO, to these three questions, then you most likely have some work to do to close out unfair pay differentials.

 3. When are pay differentials fair?

Pay differential are justified if there are substantive differences in any of these four areas:

• Skills: e.g. if there are real differences in the required skills / qualification / prior learning / experience;
• Effort: e.g. if there are real difference in the physical, mental and emotional effort required to perform the job;
• Environment: e.g. if there are real differences in the physical environment, psychological conditions, time, geographic location, noise, pollution etc. required to perform the job. &
• Responsibility: e.g. if there are real differences in the scope of responsibility for people, finances, or material required to perform the job.

 4.   Why should I?

Whichever way you look at it, whether from a legal, ethical, practical or even punitive perspective, the bottom-line is you are required to comply. The Employment Equity Amendment Act  makes this a legal requirement; ethically it is part of good corporate governance and responsible citizenry (also see Code of Good Practice); practically it is great for staff morale and organisational development; and from the punitive perspective you will avoid staggering fines from the Department of Labour. So just get up and get on with it!

 5. How do I do this?

The following process may be used to determine equal pay /remuneration for work of equal value:

• Audit: Conduct an audit to determine the scope of the inequalities in pay (look for pay differentials where gender, race, disability or any other arbitrary grounds could account for the difference);
• Focus: Focus your audit on jobs that are same or similar, and where peoples’ pay shows unjustified pay differentials;
• Job Descriptions: Develop or update these roles’ Job Descriptions before evaluating these jobs;
• Job Grading: Use a transparent and fair Job Grading system to evaluate and eliminate the effects of the unfair discrimination;
• Look further: Compare female-dominated jobs with male-dominated jobs, as well as other jobs that may have been undervalued due to, race, disability or other discriminatory grounds;
• Remuneration Comparison: Use rational methods to compare roles for pay differentials, e.g. compare the average / median earning of employees in the comparable roles;
• Root Cause Analysis: Identify reasons why there are unjustified pay differentials between these roles.
• Action Plan: If there are unjustified pay differentials, identify ways of how you can systematically eliminate the unfair discrimination (without reducing the pay); and
• Monitor and Review: ensure that you repeat this process every year until you have closed the gaps.

Most employers can insource most of this process, but often need assistance with the Job Descriptions, Job Grading and Action Plan. Determine what you are willing and able to do in-house, and what do you need to out-source. Remember, assistance is just a click away.