Exceptions to the normal pay decision making process are a slippery slope.

Scenario #1: You are changing your bonus plan and one aspect of that change is a decrease in bonus targets for some job levels. The CEO wants a few employees grandfathered (with no end date to the grandfathering) so they can keep the higher bonus targets. The employees on this list are all white men.

Scenario #2: You have a list of 12 high potential employees. They are going to get an additional long-term incentive grant. There are zero people of color and one woman on the list. No one is over 40 years old.

Scenario #3: You are reviewing the overtime paid in the last quarter. More than 50% of men in eligible jobs have received overtime. Less than 10% of women in eligible jobs have received overtime. Do you have a problem?

Pay equity is ensuring fair pay for similar work regardless of gender, race, ethnicity, age, or other discriminatory factors.

If you work for an employer that is committed to pay equity (all employers should be), how would you handle the scenarios above?

Base pay is often the default payment we look at to determine if we are paying employees equitably. But the incentives, allowances, overtime, and other rewards should also be included in your analysis.

#payequity #paytransparency #exceptions #rewards #humanresources