Equal Pay's Impact on Human Resource Management (HRM)
Equal Pay's Impact on Human Resource Management (HRM)
What does it mean to have equal pay?
What role does human resource management play in ensuring fair compensation within an organization?
Best practices for equal pay
- Create clear pay systems and objective benchmarks for recruiting, performance, progression, and remuneration to assure consistency.
- Communicate with employees about the metrics and their success on a frequent and honest basis to develop trust within the business.
- Consider developing standard salary ranges or standards for each job classification or role.
- Maintain current job descriptions to ensure that the work being done and the abilities necessary to complete the work are appropriately represented.
(Piazza, 2020).
The benefit of equal pay
Several advantages may
be noted when organizations implement compensation systems that compensate
employees equally for the same number of workers.
- Employees are shown the values of
the organization.
- Improve efficiency and
motivation.
- Recruit top performers.
- Higher productivity.
(HR Search & Rescue,
2021)
Sri Lanka's Fair Treatment
Conclusion
References
HR Search & Rescue, 2021. HR Search &
Rescue long logo 2. [Online]
Available at: https://hrsearchandrescue.com/why-equal-pay-matters-in-the-workplace/
[Accessed 10 08 2023].
Piazza, N.
L., 2020. SHRM. [Online]
Available at: https://www.shrm.org/hr-today/news/hr-magazine/spring2020/pages/importance-of-pay-equity.aspx#:~:text=HR%20should%20keep%20pay%20equity,one%2Doff%20increases%20and%20incentives.
[Accessed 11 08 2023].
Salary.lk,
2023. WageIndicator. [Online]
Available at: https://salary.lk/labour-law/fair-treatment
[Accessed 11 08 2023].
Important area which has some kind of dilemma. Employees who perform well should receive better rewards and pay while encouraging other employees. However, as per my experience, this is a crucial challenge for organizations and having comprehensive criteria and developed systems can support to achieve this challenge.
ReplyDeleteThank you!
DeleteThe article then offers best practices for achieving equal pay, including creating clear pay systems, maintaining open communication, and setting standard benchmarks. The benefits of equal pay, such as promoting organizational values, improving motivation and productivity, and attracting top talent, are effectively detailed.
ReplyDeleteThank you
DeletePay is also one of the key factors affecting motivation and relationships at work, ultimately contributing to your commercial success, so it’s important to reward all employees fairly.
ReplyDeleteThank you
DeleteAn article that thoroughly discusses the most important and essential aspects of a service. Wage disparity can lead to high rates of employee turnover, along with the cost of recruiting and hiring new talent. Finding new talent can be difficult for a business with a reputation for unequal pay. So its longevity is also uncertain.
ReplyDeleteThank for your comments
DeleteBy prioritizing equal pay, HRM demonstrates the organization's commitment to fairness, diversity, and inclusion. HRM practices that promote equal pay help attract and retain top talent, enhance employee morale, and contribute to a positive organizational culture
ReplyDeleteAgreed!
DeleteEqual pay is not about the fairness of pay, but about men and women receiving equal pay when they are doing equal work. Equal pay is different from the gender pay gap, which measures the differences between the average pay of male and female employees, irrespective of job role or seniority.
ReplyDeleteYes this is I mean say
Deleteit is kind of a commitment by HR in setting up a equa[ pay system for all the employees irrespective of the gender. this practice can make employee more productive and involved at the job.
ReplyDeleteThank you Azaam
DeleteTheoretically speaking it sounds good, but most of the organizations recruiting women employees expected to pay less compared to men regardless of the qualification. Almost all the organizations recruit European passport holders for higher salary whereas experienced and qualified Asian employees are paid less only just to maintain European quality of life.
ReplyDeleteEqual pay is determined by the organization or the country, thus there will always be variations.
DeleteI understand your argument on the equal pay for equal-value work. While it is a sound approach from a business point of view, from an HRM perspective, I disagree with this strategy on the basis that every worker is a unique human being with unique circumstances. Equal pay can be perhaps used to define a baseline pay scale but if the organisations are capable of compensating the workers at a higher rate, then they must do so to support the worker and keep them satisfied in their job. One example is where two workers perform equal-value work where one is single and other has dependents to support. In such a case, compensating the latter individual who has more dependents can be an employee-centric approach that can be taken under HRM if the employer has capacity to do so. The goal of HRM practitioners should be to keep employees satisfied while helping the organisations grow.
ReplyDeleteNimantha, thank you very much! I respect your viewpoint, but I'd like to remind you that, as a company, they must find a way to distinguish employment roles and pay appropriately. My personal example: I began as a salesperson and worked my way up to become a senior executive in the process and compliance department. They paid me less than they did for college, but we perform the same job and work in the same business; therefore, there is a gap in the internal promotion system, which is why I urge that HR develop a mechanism to analyze this issue.
Delete