1) Before anything can be corrected, one has to understand the concept of equity theory. Equity theory is the “pay fairness theory that states that people from equity beliefs by comparing their outcome/input ratio to that of a referent other” (331). In other words pay fairness is based solely on the perceptions of fair and unfair distributions. Normally people form their equity beliefs on input and output, and that is what Brookfield based their existing wages on. In order to correct the existing wage inequalities, there are many steps that have to be taken. First internal consistency must be established. Internal consistency is when each employee’s pay is fair compared to other coworkers. Brookfield employees have to believe that all workers …show more content…
Once job evaluations are completed, pay grades are established. Pay grades are the job groupings that assign all jobs to a similar group and receive the same pay range. This is important so that way Brookfield wouldn’t have to assign different pay rates to each job evaluation score. Surveys can be conducted if possible to see what other competing companies are offering their employee’s. This survey that are conducted are called salary survey. This survey can help give an idea and help establish equal pay rates. Once the other companies pay rates are researched, Brookfield can figure out how competitive they want to be. Brookfield must set a pay policy that identifies how well their employees will be paid compared to the market. The pay policy is very beneficial because if it is not implemented correctly it could cause turnover problems and budget problems. After market rates and pay policies are established, Brookfield can then price each job. Pay policy line, employee contributions, a pay range, skill based pay are all used to identify adequate pay rates. Once Brookfield follows these steps, I believe the existing wage inequalities can be …show more content…
Brookfield is not a unionized company and I am not sure why Brookfield should pay union wage scales. This could be a problem to downsize their wages because some employers may quit and this could lead to major problems. Also, if the workers continue to get paid at a higher rate, this could lead to pay freezes, layoffs, and higher prices. There is no easy way to tell an employee that their wages will be cut but these are some suggestions that I would implement. The first thing I would do is confirm with Brookfield about the red circle employees issue and make sure they support my decision. Next I will create some sort of outline on how I will identify the red circle employees and how to eliminate these high rates. Next I will research market rates and update the employee compensation policy. Then I could compare each employee’s salary range. After that I can identify all the red circle employees and allow the decision makers of Brookfield to evaluate my findings to make sure I didn’t leave out any red circle employees. After this I will go ahead and alert the red circle employees with the new information and how this will affect their pay rate. The final step would be to check the method periodically and implement any changes that are affected by the market. The implication to my recommendation could be very extreme because I am basically telling the red circle
It is also the one of the hardest components for management to fulfill. GMFC needs to be an industry leader in pay as well as implement a merit pay policy for employees. Leading the industry in pay and awarding employees pay increases equal to or better than what the union can negotiate is instrumental to keeping the plant union-free (Fossum, 2012). Also basing pay increases on performance and skills learned is a great incentive to boost productivity and employee motivation. As an example, Volkswagen starts their employees the base rate the union would be able to negotiate keeping employees content (Greenhouse, 2014).
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
The situation at the Twin Oaks Hospital is a conundrum that every human resource function would not like to be involved. It is a scenario that has the potential to derail the services of the medical facility. The primary issue, in this case, is remuneration. Employees are demanding an improved wage system that reflects on the services that they offer. In the claims, there appears to be an array of disparities that the line managers must give a response. Seemingly, there have been some grumbles over the wage structure. Employees who give the same value of services are paid varying amounts of money. Ordinarily, if workers discover such a disparity, they are likely to stage a go-slow in protest. There is,
There were a few issues of fairness presented in Michael Simpson’s case that happens in in real world work places that prevents employees from working to their full potential or causing them to leave the work place all together. In this case study Michael Simpson is faced with the dilemma of whether or not he should leave Avery McNeil, the accounting at which he is currently working at. Simpson had interviewed with many consulting firms before graduating college, and had chosen Avery McNeil because it had the potential to allow him the most rapid advancement in his career. Within two years of working their he was promoted to manager and he received a great pay raise. However, a few days later Simpson came upon a sheet with pay grades of other
The practice of colonialism by several nations led to the possession and exploitation of weaker countries. It resulted in the strengthening of the mother country and oppression of the indigenous people of the colonies (Nowell, 2013). Colonial cities were deliberately developed within colonial societies in order to centralize political and economic control. Essentially, colonial cities facilitated the consolidation and exportation of wealth to the dominating nation (The Editors of the Encyclopædia Britannica, 2014).
An employer who pays his employees the bare minimum will not see the same appreciation and respect as an employer who pays his employees livable wages. Lew Prince points out the various benefits that have come with paying his workers above the federal minimum since his business began. He states, “We’ve outlasted 20-store local chain and numerous regional and national chains. Most of these companies paid their employees minimum wage or barely above. My creative, dedicated, and better-paid employees won this life-or-death struggle for us” (Prince). Their loyalty also benefits Prince in the fact that he has to pay very little for employee turnover and constant training costs that other businesses struggle with. What Prince and many other business owners alike gain from higher wages reflects only a portion of the nation that will prosper from this monumental economical
However Lowenstein says that “there is a strong economic and moral case for a slow and steady increase”. The free market argument suggests that the classic supply and demand model that is taught in economics 101 is not representative of the way in which a labor market behaves. People behave according to what economists and Nobel Prize winner Daniel Kahneman, co-authored with Jack Knetsch and Richard Thaler wrote in a paper in 1986 which suggested that there is a notion of fairness that drives the way in which workers accept different wage levels. There is no what is called the reservation wage, which means that a bricklayer, for example, will have a lower wage that is acceptable than a doctor. There is a neutral reference point which affects the way in which workers will accept or not accept employment. In a similar fashion, during a minimum wage hike employees will feel that they are underpaid if they do not gain above the minimum wage when they were working above the minimum wage previous to the
To resolve the gender wage gap, the government should consult with employers in federally-regulated sectors to apply a gender-based analysis to the design, development, implementation and evaluation of the policy. The law should clearly outline the systematic discrimination that women face in the workforce. This policy would entail employers to determine whether gender-based disparities exists and reevaluate the current pay system from an equity perspective to ensure and promote pay transparency. The law of ensuring pay equity should first be applied to the public sector, including federal public servants, employees of Crown cooperation and federally regulated companies. After this law has been found to be effective, it is also recommended that private corporations follow the same suit and comply with the pay equity
Almost two years ago the company where I am employed, RGIS LLC, mandated a pay policy change for the hourly employees. Hourly employees make up over 95% of RGIS’s labor staff. This new, four-tier payment scale, aptly named “Pay 4 Performance” (p4), ultimately affected thousands of employees who had been with the company for years and had high pay rates simply as a result of longevity. The four new levels would have a matching pay scale based upon each individual employee’s production. These levels are what RGIS calls an ASET level: Auditor, Specialist, Expert, and TopGun, with each level advancing to a higher production and pay rank, respectively (Company).
Employees often overestimate their coworkers’ pay when it is kept a secret. This leads to overall lower job satisfaction, which in turn hurts workplace productivity. In general, employees work more productively when pay structures are transparent and predictable (Chamberlain para 5). If employees become aware of the wages their associates earn, they will know where they stand in their company, and they will feel happier. This will lead to increased workplace efficiency and will help businesses in the United States increase their profits. Additionally, pay transparency has already helped lower the wage gap in several countries. Britain, Austria, and Belgium have all signed laws requiring employees working in the countries to report their wages. These legislations provided the pressure needed to force companies to increase working women’s wages (Lipman para. 5). PricewaterhouseCoopers, a multinational professional services network, released its British employees’ wages to the public in 2013. The report shows a clear separation between the wages that male and female workers in the company earned that year. Since then, the business has proceeded to work on lowering their gender wage gap, and their pay discrepancy has significantly decreased (Lipman para. 6). A pay transparency law has already succeeded in lowering the wage
The Newham Company is a publicly traded company that recently has had a change in executive management due to an inappropriate bonus structure based on company performance. As this type of bonus structure often leads to material misstatement of facts resulting in falsified financial reports, the new management at Newham has commissioned SNHU INC. to conduct an audit which assesses their risk of misstatement. The audit to follow will be broken down into three parts: Overall business risk, sample audit plan and a report of recommendations based audit results.
The company will want to give a form of conformity as a form of forgiveness, however not very people will want an adjustment to their pay. For example, the company can offer a certain amount of money so that way the employee can be satisfied and
Pay equity programs attempt to address the undervaluation for work traditionally or historically done by women. Pay equity (also referred to as “comparable worth”) programs require a gender-neutral analysis of comparative work. A variety of very different jobs are compared based on a composite of the skill, effort and responsibility of a job and the conditions under which the job is generally done. The comparison determines the relative worth of those jobs to the achievement of a firm’s objectives, under the proposition that equal contribution merits equal compensation. Where female-dominated jobs in the workplace are found to be of equal or comparable value to male-dominated jobs but paid below the level of the male jobs or payline, then all employees in those female-dominated jobs are entitled to receive pay equity adjustments.
The Smithfield School is part of The School District of Philadelphia that serves 563 students in the grades from K-8. Smithfield student body is 80.2% African American, 5% White, 6.1% Asian, 1.4% Latino and 7.3% others. At the Smithfield School, 100% of the students are CEP Economically Disadvantaged (eligible for free lunch), during this school year (2014-2015). When it comes to school attendance the students had a academic school average of 93.2% and the teachers school attendance average was 88.4% compare to 93.4% among the School District of Philadelphia schools in 2013-2014.
Some think that publishing salaries could put an end to the wage gap. A company based in New York City, SumAll, started an internal document that allowed other employees access the information of their coworkers. It did not show every detail of the employee’s background information. This document was created by SumAll, and then distributed to other companies around that area. The document lists the salaries of all employees, it also shows an increase in that person’s salary. Employees at SumAll, said this gave workers the confidence needed to ask for higher pay, with a reasonable request. Companies, and their personnel believe that knowing the salaries of