5 Tips for Achieving Fair Compensation

Pay equity refers to the principle that individuals should be compensated equally for work of equal value, regardless of their gender. The goal of pay equity legislation is to eliminate pay disparities between men and women by ensuring that jobs of equal value are paid the same. Pay equity is not the same as equal pay for equal work, which refers to paying the same wage to employees who perform the same job. Rather, pay equity is about ensuring that jobs that require similar skills, effort, and responsibility are compensated equally.

Pay Equity Laws in Canada
In Canada, pay equity laws vary by province and territory. The federal government has its own pay equity legislation that applies to federal public sector employers and federally regulated private sector employers. The Canadian Human Rights Act prohibits discrimination on the basis of gender in employment and the Employment Equity Act requires employers to develop and implement employment equity plans to ensure that their workforce is representative of the diversity of the Canadian population.

Pay discrimination on the grounds of gender is prohibited in Ontario, British Columbia, Alberta, and Saskatchewan. Whereas, equal pay for same or similar work is a requirement of employment standards legislation in Ontario, Manitoba, Saskatchewan, Yukon, Newfoundland and, North West Territories. Pay equity – “equal work for work of equal value” is required in separate pay equity legislation for the public sector in Manitoba, Nova Scotia, New Brunswick, and Prince Edward Island and for the public and certain private sectors in Québec and Ontario.

Here are 5 tips for achieving fair compensation:

1. Conduct Job Evaluations: Employers should conduct job evaluations to determine the value of each job class in their organization. This will help to identify jobs that require similar skills, effort, and responsibility and ensure that employees in these job classes are compensated equally.
2. Regularly Review Compensation: Employers should regularly review compensation to ensure that it is fair and equitable. This includes reviewing salaries, benefits, and other forms of compensation to identify any disparities.
3. Develop Pay Equity Plans: Employers should develop pay equity plans to ensure that female job classes are compensated equally to male job classes that require similar skills, effort, and responsibility.
4. Train Employees and Managers: Employers should provide training to employees and managers on pay equity and anti-discrimination policies. This will help to prevent discrimination and ensure that everyone in the organization understands the importance of pay equity.
5. Foster an Inclusive Workplace Culture: Employers should foster an inclusive workplace culture that values diversity and inclusivity. This includes promoting gender equality, providing equal opportunities for advancement and growth, and creating a work environment that is free from discrimination.

Key Take Away
By using the tips mentioned above, employers can take concrete steps to promote pay equity and prevent discrimination. As we continue to see new developments and updates to pay equity legislation across the country, it is essential that employers remain informed and take proactive steps to ensure that they are in compliance and promoting pay equity in their organizations.

– HR Covered Inc.

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5 Tips for Achieving Fair Compensation

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