Guide to equal pay reviews

EQUAL PAY AUDITS

Guide to equal pay reviews

A new study by IDS Diversity at Work examines what equal pay reviews involve and the kinds of reward systems and practices that can lead to discrimination.

 

What you will find in this article

The seven-page article by IDS Diversity at Work, a monthly subscription journal, looks at the ways in which some organisations have begun to adapt their reward practices to ensure greater fairness and minimise legal risk.

As well as describing what an equal pay review entails, it looks at the kinds of reward systems and practices that can lead to inadvertent discrimination and the ways in which some organisations have begun to adapt their reward practices to ensure greater fairness.

In particular the article considers:

  • starting pay
  • service-related pay
  • broad bands
  • performance pay
  • bonuses
  • market forces.

 

A final word

"Equal pay can appear a difficult and daunting issue for an organisation to address. It requires a good understanding of diversity, equal pay and discrimination laws, and the application of those principles to increasingly sophisticated and market-oriented reward strategies. It may involve questioning long-held perceptions of the relative value and status of different jobs, and uncomfortable discussions about why some people receive more than others.

Co-operation with reward specialists and commitment from senior management are essential, but may be hard to achieve, given fears about potential costs and the disruption to long-standing practices. Nevertheless, equal pay has risen up the agenda in recent years, and for organisations that claim in their diversity policies to value all employees regardless of gender, ethnicity, age, disability, etc, checking and reviewing their reward practices to ensure this really is the case -- that all employees are rewarded in an equitable and fair way -- should be an essential feature of diversity practice." -- IDS Diversity at Work June 2005.

Want to know more?

Title: "Good equal pay practice", IDS Diversity at Work June 2005.

Availability: To order your copy contact customer services at Incomes Data Services in London, tel: 020 7324 2599. You can order online at www.e-commerce-suppliers.com/dpClient/onlineorders/buydiversity.jsp

IDS is a leading UK information and research service on employment issues, providing a range of publications for employers, unions, government departments and other agencies. To find out more visit www.incomesdata.co.uk

Posted 1 July 2005