Unequal pay for Equal Work
Minor Project – Internet Exercise – National Committee on Pay Equity
Question:
Visit the website for the National Committee on Pay Equity. According to information presented on the website, how has pay equity changed since the Equal Pay Act was signed in 1963? Develop your position on the issue of present pay gap. What do you believe should be done to improve the situation? Use at least 5 additional sources and APA formatting (minimum 1000 words).
————————— this weeks study —
The Pay Model
This week we’ll introduce the key components of a compensation system. The definition of compensation is initially explored from the perspectives of the society, key stakeholders, the organization, and the external environment. Next, the various forms of pay are identified and defined. The major focus is presenting a pay model that provides a structure for understanding compensation systems. The three main components of the model are (1) compensation objectives, including the importance given to ethics; (2) policy decisions that guide how the objectives are going to be achieved; and (3) techniques that make up the pay system.
Strategy: The Totality of Decisions
Next, we’ll examine the key aspects of decisions taken during strategy creation on compensation. The key premise is that the way employees are compensated can be a source of sustainable competitive advantage. Two alternative approaches are highlighted: (1) “best-fit”/contingent business strategy/environmental context approach and (2) “best practices” approach. The best-fit approach presumes that one size does not fit all. Managing compensation strategically means fitting the compensation system to the business and environmental conditions. In contract, the best-practices approach assumes a universal best way exists. The focus is not on what the best compensation strategy is but on how to best implement the system.
Defining Internal Alignment
Finally, we’ll discuss internal alignment and how it affects employees, managers, and employers. Internal alignment refers to the pay relationships among jobs/skills/competencies within a single organization. An internal pay structure – the array of pay rates for different jobs within an organization – is defined by (1) number of levels of work; (2) the pay differentials between the levels; and (3) the criteria used to determine the levels and differentials. Pay structures are shaped by both external and organization factors, including economic, societal, and organization-specific factors.
Newman, J.M., Gerhart, B., & Milkovich, G.T. (2017) Compensation, 12th Edition. New York: McGraw-Hill Education. (ISBN: 978-1-259-53272-6)
Read: Milkovich & Newman, Chapters 1-3
Answer preview
The Equal Pay Act was signed into law on the 10th of June 1963 (Siniscalco et al., 2013). It came as the first federal law on anti-discrimination. The framers of the Act held in mind the great disparities in the labor force that reflected a bias in wages and salaries based on gender. By the stipulation of this Act, it was made unlawful to pay woman differently from men whereas they were attending to similar work in the same institution. Its adoption brought alignment and bore fruits on the streamlining an issue that was initially of great concern. However, there are still some elements that reflect a difference in today’s compensation schemes. In such a case, various stakeholders such as the federal government, states, labor organizations, the employers, employees, and the general public must come out to address the concern. Despite the Equal Pay Act bringing a lot of positive aspects in the employment sector, variations still exist in the present day, thereby calling for an address by various stakeholders to deliver a standardization effectively.
Changes accruing from the Act
Numerous achievements have been realized through the provision by the Equal pay act of 1963. Initially, in the first decades of the 20th century, women characterized by less than 24% of the total American labor force (Stanberry & Aven, 2013). However, the number of women in civil jobs slowly made an increase. They were initially paid less as compared to their male counterparts. This is what led labor organizations to endorse equal pay regardless of gender. Decreased discrimination on women is one of the significant…
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