Employees are the most integral asset to any modern business. Without a winning staff, the quality of facilities and ideas won’t count for anything. It’s people who drive an organization forward, which is why human resources cannot be overlooked for a second.
While HR can cover a number of subjects, it essentially boils down to keeping people happy. Given that money is the main motivation for most workers, salary should be top of the agenda. This can be broken down into several aspects, but equal pay for equal work is arguably the most important. Here’s what you need to know about the subject.
Essentially, the equal pay for equal work law means that employees in the same job role need to receive the same remuneration. So if you have two junior accountants doing the same job, their salaries should match up.
The main issue is gender equality. Men and women within identical job roles should receive the same pay packet, and the company is legally obliged to do this. Ultimately, it’s about offering equal opportunities to all employees. Chiefly, it provides greater protection for workers. However, it can also work wonders for employers and organizations too.
Benefits To Business
First and foremost, equal pay is a legal obligation. In truth, though, establishing these systems can generate huge improvements for your company. The list includes;
Improved atmosphere: any form of discrimination in the workplace is bad, and can ruin the vibes. Equal pay will stop jealousy within the organization. With a better feeling, flowing through the business, you’ll be more likely to see positive results.
Greater respect: in addition to better relationships amongst themselves, employees will enjoy a stronger bond with the employer. Boosting your leadership tasks can be key for greater productivity.
Equal treatment: when you pay employees on equal terms, you’ll treat them the same too. Showing a preference could cause dysfunction, and that will lead to reduced workflow and slower growth.
Easier tracking: monitoring progress is vital in all aspects of business, especially with staff input. Equal pay for equal work makes it a far simpler process. These ideas, combined with absence management software will help you pinpoint employees that aren’t producing the goods, which makes it easier to take action.
There are various other benefits to be had from these systems. Ultimately, though, it’s designed to create a stronger team and a more efficient operation. If that doesn’t motivate you to take action, then nothing will.
How To Implement It
Understanding the reasons for incorporating equal pay is one thing. Making it happen is another altogether. In truth, the specific methods will depend largely on the size of the operation and teams. However, the basic principles are the same.
The first job is to decipher what employees are doing the same work. Job title alone isn’t the only element to consider. After all, factors such as unsociable hours can influence the scale of pay that a worker is on. Great organization will help your HR team. Using spreadsheets will make it far easier to understand individual job roles to make those key decisions.
After this, you need to work out whether males and females are being paid fairly and equally. If there are issues that need to be attended, then you must form a plan of action immediately. Naturally, starting salaries will be your first call of duty. However, performance management and bonus eligibility are equally crucial to the process. Likewise, time and attendance systems allow you to ensure that pay structures and staff management are fair and efficient.
Once a suitable system has been established, you must also follow it on a long-term basis to avoid future disparities too.
Does It Mean All Workers Will Be Paid Identical Fees?
While base salaries of workers in the same positions should be identical, it doesn’t mean all employees will be paid the same. Hardworking employees should be rewarded for their endeavors. Offering bonuses for sales leads and other successes can be a great motivation tool.
For example, it can encourage salespersons to go the extra mile to gain those extra customers. Ultimately, you’re rewarding staff members for making the business more money. However, you cannot use this bracket to escape the legal implications of equal pay for equal work laws. If you are going to offer bonuses, then employees in the same roles should be on the same tier of rewards.
Similarly, overtime and other factors will all play a key role. Inevitably, every employee is unique, and their final pay is likely to reflect it. The equal pay for equal work system is essentially about creating a fair situation for everyone.