\n| \n Occupation<\/strong><\/p>\n<\/td>\n| \n Male Median<\/strong><\/p>\n<\/td>\n| \n Female Median<\/strong><\/p>\n<\/td>\n| \n Ratio<\/strong><\/p>\n<\/td>\n<\/tr>\n\n| \n Accountants<\/p>\n<\/td>\n | \n $1,404<\/p>\n<\/td>\n | \n $1,108<\/p>\n<\/td>\n | \n .79<\/p>\n<\/td>\n<\/tr>\n | \n| \n Cashiers<\/p>\n<\/td>\n | \n $468<\/p>\n<\/td>\n | \n $463<\/p>\n<\/td>\n | \n .98<\/p>\n<\/td>\n<\/tr>\n | \n| \n Human Resource Workers<\/p>\n<\/td>\n | \n $1,328<\/p>\n<\/td>\n | \n $1,108<\/p>\n<\/td>\n | \n .83<\/p>\n<\/td>\n<\/tr>\n | \n| \n Insurance Underwriters<\/p>\n<\/td>\n | \n $1,413<\/p>\n<\/td>\n | \n $1,032<\/p>\n<\/td>\n | \n .73<\/p>\n<\/td>\n<\/tr>\n | \n| \n Lawyers<\/p>\n<\/td>\n | \n $2,202<\/p>\n<\/td>\n | \n $1,762<\/p>\n<\/td>\n | \n .80<\/p>\n<\/td>\n<\/tr>\n | \n| \n Personal Care Aides<\/p>\n<\/td>\n | \n $555<\/p>\n<\/td>\n | \n $493<\/p>\n<\/td>\n | \n .89<\/p>\n<\/td>\n<\/tr>\n | \n| \n Pharmacists<\/p>\n<\/td>\n | \n $2,271<\/p>\n<\/td>\n | \n $1,890<\/p>\n<\/td>\n | \n .83<\/p>\n<\/td>\n<\/tr>\n | \n| \n Real Estate Brokers<\/p>\n<\/td>\n | \n $1,264<\/p>\n<\/td>\n | \n $883<\/p>\n<\/td>\n | \n .70<\/p>\n<\/td>\n<\/tr>\n | \n| \n Registered Nurses<\/p>\n<\/td>\n | \n $1,271<\/p>\n<\/td>\n | \n $1,156<\/p>\n<\/td>\n | \n .91<\/p>\n<\/td>\n<\/tr>\n | \n| \n Social Workers<\/p>\n<\/td>\n | \n $958<\/p>\n<\/td>\n | \n $897<\/p>\n<\/td>\n | \n .94<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Those data are best seen as macro data and unfortunately are the most readily and frequently used by writers.\u00a0 Digging deeper, the data ignores the differences in industry sectors, locations, size of employer etc.\u00a0 Clearly, however, there is a continuing problem.<\/p>\n Those data also mask an important aspect of the problem.\u00a0 Women are often passed over for a promotion and stuck in jobs where they are overqualified.\u00a0 That makes their pay look better.\u00a0 But it\u2019s not evident in market pay data.<\/p>\n The second problem is that labor markets are dynamic; salaries are determined by the balance of supply and demand for skills.\u00a0 Demographic and retirement trends also affect pay levels.\u00a0 Additionally, salaries in government and not-for-profit employers tend to be lower than in the private sector.\u00a0 Realistically high growth industries tend to offer higher salaries and pay increases than slow growth or declining industries.\u00a0 All of those considerations and more impact relative pay levels and the patterns change over time.\u00a0<\/p>\n That\u2019s reflected in the high demand for technology specialists.\u00a0 Their starting salaries and pay increases have been above average year after year.\u00a0 The pandemic and the sudden importance of front line nurses and workers like EMTs, paramedics, and ambulance drivers are likely to trigger big increases that will show up in the next round of pay surveys.\u00a0 An important and possibly difficult question is how the pay increases for high demand workers will affect the pay increases for other employees.<\/p>\n A key point is that the policies of all employers are affected by the need to compete for talent.\u00a0 Salary management is always a balancing act, trying to remain competitive in dynamic labor markets while maintaining the belief internally that employees are paid fairly.\u00a0 Government is known to pay below-market salaries which, if the economic theory is correct, affects the caliber of employees who apply.\u00a0 Today, many companies ignore internal considerations and align salaries with market pay levels.\u00a0 Some pay by policy above-average salaries to enable them to attract better-qualified applicants.\u00a0 That\u2019s pay strategy.<\/p>\n Pay Equity Laws Today<\/strong><\/p>\nToday only Mississippi has not enacted pay discrimination legislation.\u00a0 Alabama was the most recent state to enact equal pay legislation.\u00a0 In 2019 more than 30 states considered new equal pay legislation; 11 states passed new stronger laws.\u00a0 Several cities have enacted similar legislation.<\/p>\n At the federal level, the Equal Pay Act of 1963 makes it illegal for employers to pay unequal wages to men and women who perform substantially equal work. \u00a0The Paycheck Fairness Act, proposed first in 1997, has been re-introduced several times, as recently as 2019. It was passed by the House and now awaits Senate approval.\u00a0 The bill would make fair pay closer to a national policy by punishing \u201cemployers for retaliating against workers who share wage information, puts the justification burden on employers as to why someone is paid less and allows workers to sue for punitive damages of wage discrimination.”<\/p>\n There are two important trends in the newly enacted laws: \u00a0<\/p>\n \n- One permits employees to discuss pay with co-workers without the fear of punishment. That makes it easier for women to learn if they are paid fairly. Open discussions make it much more important for employers to maintain fair salary programs.<\/li>\n
- The second prohibits employers from asking job applicants what they were paid in previous jobs. That minimizes the possibility that discrimination carries over from one employer to the next.\u00a0<\/li>\n<\/ul>\n
Although not at this point a trend, states are beginning to expand the fair pay requirement from \u201cequal work\u201d to \u201csubstantially similar work, when viewed as a composite of skill, effort and responsibility.\u201d\u00a0 That is from the recently enacted California law.\u00a0 Locality differentials are a defensible factor in several states.<\/p>\n Colorado\u2019s law stands out: it requires employers to list salary ranges for every job posting.<\/p>\n The state laws differ in coverage.\u00a0 Most are limited to women or sex but several now extend coverage to race and ethnicity.<\/p>\n Conducting a Pay Audit<\/strong><\/p>\nWith the new legislation and increased attention to equal-pay issues, it makes sense for HR departments to conduct audits of pay levels as well as the effectiveness of their policies and practices.\u00a0 Legal settlements can easily exceed a million dollars or more.<\/p>\n Research over the decades shows employees want to be paid fairly.\u00a0 That does not mean wage and salary levels or annual increases need to be fully competitive.\u00a0 Moreover, merit increase policies are consistent with the idea that high performance is valued.\u00a0 However, when workers discuss their pay or read media reports about increased trends, they should feel their employer is committed to fair pay.<\/p>\n There was a time when employers never told their employees anything about pay.\u00a0 Total silence.\u00a0 Now of course there are multiple sites like Salary.com, PayScale, and Glassdoor that make market pay information readily available.\u00a0 In the current environment, the more an employer tells workers about pay \u2013 assuming it’s honest and reasonably consistent with defensible practices \u2013 the better.\u00a0<\/p>\n In higher education, it’s common when pay programs need to be modified or pay levels reviewed to form a committee of employees covered by the programs.\u00a0 It’s consistent with a collegial culture.\u00a0 If the program covers, janitors, for example, there will be one or janitors on the committee.\u00a0 It\u2019s been my experience in consulting with colleges that employees take their role very seriously, debate issues thoroughly, and try to make sound decisions that address problems.\u00a0 When they return from meetings, they discuss what they learned and current issues with co-workers.\u00a0 They own and defend the program changes. \u00a0Experience confirms its an effective strategy to plan and review pay programs.<\/p>\n A related and solidly accepted practice in Germany is referred to as co-determination.\u00a0 Employees at all levels are asked to play a role in assessing employment policies.\u00a0 That\u2019s broader than pay but experience shows employees want their organization to be successful.\u00a0 Again, involving employees in assessing and managing pay programs increases the credibility of the decisions.\u00a0 Involving employees works.<\/p>\n Audits can involve five complementary analyses.\u00a0 The first step is assembling a database along with tables and graphs showing male and female salaries by job, years of service, etc.\u00a0<\/p>\n \n- The simplest audit identifies male and female-dominated jobs and compares salaries with market levels. That\u2019s straightforward and is best when based on simple, descriptive statistics. \u00a0The purpose is to assess the salary planning process used with male and female jobs.\u00a0 Thousands of surveys are conducted annually.\u00a0 It\u2019s important to focus on those that include organizations competing for talent.\u00a0 The organization\u2019s salary planning strategy along with recent results should be available to employees.\u00a0 (They can easily develop their own analyses using less reliable websites.)\u00a0 If a job evaluation system based on compensable factors is used to assign jobs to grades, the factors should be evaluated for their impact on female jobs.<\/li>\n
- A second audit is a review of job descriptions, based logically on interviews with job incumbents and their managers. They need to be accurate and reasonably current.\u00a0 Reviews used to be called desk audits.\u00a0 Many employers rely on job classification descriptions that have not been updated in years. Now, however, jobs have changed in the response to COVID-19.\u00a0 A suggested strategy is to schedule the review of departments or groups of descriptions throughout the year.\u00a0 It is time-consuming and therefore costly — but a lawsuit can be far more costly.\u00a0 There are several sources on the Internet of pre-written job descriptions but that is only the starting point.<\/li>\n
- A third audit focuses on the policies and practices involved in the management of compensation. There are multiple sources of best practices, starting with the websites of consulting firms.\u00a0 More important is the application of the practices in planning and managing salaries.\u00a0 A core issue is how starting salaries for men and women compare with market pay rates and salary grade minimums.\u00a0 If there is a pay for performance policy, differences in male and female ratings and increases need to be assessed.\u00a0 Recent promotions and, if the data are available, career promotion patterns should also be analyzed.\u00a0 If a job evaluation system based on compensable factors is used, they should be analyzed to determine their impact on women and minorities.\u00a0 Perhaps the most important policy is to train everyone involved in pay decisions on the importance of fairness.<\/li>\n
- A fourth audit analyses the pay and the linkage of pay and performance for executives and managers. It\u2019s somewhat new and triggered by the work management changes prompted by COVID-19.\u00a0 Supervising remote employees requires a different set of skills and redefines the criteria for selecting and promoting managers.\u00a0 Here the audit focuses on the career and pay history of managers, comparing males and females.\u00a0 If females have been promoted or recognized for accomplishments less often, the explanations should be defensible.\u00a0 Year-end ratings and comments on performance and deficiencies need to be assessed for patterns and credibility<\/li>\n
- The fifth is the typical statistical analysis of pay and pay increases. The common goal is to compare the pay of men and women in similar jobs. \u00a0Statistical analyses effectively summarize in a formula the data in the tables and graphs.\u00a0 (A minor technical issue is the conversion of dollars to a logarithmic format.\u00a0 It helps although the reason defies a brief explanation.)\u00a0 In the analyses, male\/female is entered as a dummy variable – 1\/0.\u00a0 Dummy variables are widely used in economic analyses.\u00a0 An early decision (that may depend on the size of the workforce) is the definition of the employee data in the analyses \u2013 Whole organization?\u00a0 Job family?\u00a0 Comparable jobs?\u00a0 Female salaries in male-dominated jobs?\u00a0 The thread is learning if the defensible factors \u2013 job-specific experience, skills\/education, seniority \u2013 explain pay differentials.\u00a0 Performance is defensible if measures are credible.\u00a0 Other business reasons need to be documented and tested.<\/li>\n<\/ul>\n
With the completion of an audit, the basic conclusions should be shared with affected employees.\u00a0 Employers need to commit to correct problems.\u00a0 In some states, that may preclude litigation\u2019<\/p>\n For additional reading, two books of mine discuss pay equity concerns: \u00a0Primer on Total Compensation in Government <\/em>(IPMA, 2016), and Planning Wage and Salary Programs<\/em> (WorldatWork, 2009).<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.22″ custom_padding=”19px|0px|24.625px|0px” global_module=”37900″][et_pb_row column_padding_mobile=”on” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” max_width=”780px” custom_padding=”0px|0px|73.90625px|0px” use_custom_width=”on” custom_width_px=”780px”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ text_font=”PT Serif||||” text_text_color=”#363636″ text_font_size=”36″ text_line_height=”1.4em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” text_orientation=”center” module_alignment=”center” custom_margin=”||70px|” text_font_size_tablet=”26″ text_font_size_phone=”” text_font_size_last_edited=”on|tablet”] Want new articles before they get published? 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or considered in the decisions. <\/p>\n","protected":false},"author":3346,"featured_media":37254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_cbd_carousel_blocks":"[]","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[35],"class_list":["post-37242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-about-gov","tag-government-trends"],"acf":[],"yoast_head":"\n Is 2021 the Year for Pay Equity? - Careers in Government<\/title>\n<meta name=\"description\" content=\"With the new legislation and increased attention to equal-pay issues, it makes sense for HR departments to conduct audits of pay levels as well as the effectiveness of their policies and practices.\" 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