Importance of Achieving Equity in Pay Structures

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

This law proctects people from prejudice and allows legal action to be taken against any person or company who is proven to have unfairly treated any of the protected groups covered by this Act.

This law protects many people from discrimination and it means that people should not be at a disadvantage or mistreated at work or in society just because of their age, sex, sexuality, religion or belief, race, disability or any other things which can also be known as ‘protected characteristics’.

It terms of stopping discrimination it doesn’t stop the discrimination from occurring all together however it does prevent some sex discrimination cases from occurring as people are scared of the consequences of discriminating against someone and financial costs as if someone wins a sex discrimination case they would be awarded compensation for their experience so this stops many from discriminating however there is still discrimination occurring.

To enable them to meet their duty set out in the Race Relation (amendment) Act.

to comply with all laws and regulations in regard to pay equity and discrimination on the basis of gender, race, religion or national origin

For the most part, a company’s compensation policy aims to ensure that employees are compensated in a fair and competitive manner. However, the compensation objectives employed by different companies can vary widely. This is especially true when taking into account wages vs. skills, competitor salaries, pay-for-performance, and other elements of compensation, like overtime, incentives, etc. (Snell, Morris, & Bohlander, 2015).

Compensation could also be based in part on seniority with the company. This will show new employees that the company values workers who choose to remain with the company long-term. It also encourages new employees to make a commitment to build a career with the company and deters established employees from seeking other employment. Experienced workers will think twice about pursuing another opportunity if the new job also comes with a pay cut.

This legislation makes sure that people with different characteristics are to be protected from any form of discrimination. Below I have listed the different characteristics the legislation is to cover:

Changing to a pay-for-performance pay system always has several implications. The most important of these are discussed in the succeeding paragraphs.

When making compensation decisions, whether it is internal or external, comparisons must be considered. However, employers must carefully balance pay structures, because internal and external comparisons may not converge. Therefore, employers may differ in the way they place priorities on internal and/or external comparison data when they are developing pay structures.

Furthermore, the ERA will produce everyone to have an equal pay. No matter the gender or race. “Tracy Rexroat starting salary was more than $17,000 lower than her male peers’ when she was hired in 2007 and remained well below theirs in 2010,” it says in Why We Need an Equal Rights Amendment. This shows an example of how a woman would be paid to a man. Shouldn’t they get the same pay? The ERA can make that happen. “Despite laws guaranteeing equal pay for equal work, women on average still are paid only 78 cents on the dollar that men are paid – even less for African American women and Latinas,” it says in the same article. Poor or rich, women are being put into a lower paying job so they don’t receive plenty of money. Giving men a higher

Each compensation and benefit component will need to be revised. Such a drastic change may increase our expenses short term, the loss of valuable employees and expenses needed to train new employees will have greater financial strain on the company long term. By emphasizing our vision and mission as well as coming up to speed on competitive pay and benefits, we will be able to retain many employees as well as garner new ones. Establishing a point system will give us a better look at who we employ currently as well as who we are interested in bringing onto our company. Overall, we need to ensure our valuable employees are being taken care of top to

Cuba also illustrates a more equitable pay structure post revolution. Income is determined by work and there is no personal income from owning the means of production and gaining from possessing shares or property, or form inheritance. As a result Capital expenditure and borrowing vast sums to be paid back form surplus wages is an unfamiliar concept. Under modern socialism there is equal compensation for all. There is no class segregation. Whether one hold an academic degree or a vocational degree the pay remains constant. Education, Health and Housing are provided on a need basis then whilst wages are lower costs are also vastly decreased. In a Democratic Capitalist state Academic degrees lead to gaining jobs higher up the hierarchy than

This assignment deals with the Employment Equity Act of 19 October 1998. It covers the workings of the act in terms of equity and affirmative action and how it was implemented in Defy Appliances Ltd in 1999. It also covers some of the obstacles and challenges that were experienced by the company; as well as its success in other companies in South Africa