Description
Continuing Case: Carter Cleaning Company – The New Pay Plan
11-16: Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?
11-17: Is Jack Carter’s policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?
11-18: Similarly, is Carter’s male–female differential wise? If not, why not?
11-19: Specifically, what would you suggest Jennifer do now with respect to her company’s pay plan?
Application Case: Salary Inequities at AstraZeneca
11-13: Although the case with OFCCP is closed, we wonder if there are any less discriminatory explanations possible for why our women sales reps on average earned less than men. If so, what are they?
11-14: Our own company now uses a point method to evaluate jobs for pay purposes, and each resulting job class also has a rate range associated with it. Sales associates are now paid a salary that is not based on incentive pay. List three specific things we can do to ensure that a similar problem (inequitable pay based on gender) does not arise again, assuming they continue using the point plan.
11-15: What sort of compensation plan would you recommend for us, and why?
Explanation & Answer
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Application Case: Salary Inequities at AstraZeneca
11-13:
There could be various reasons to explain why women may have lower salaries. For example,
women sale reps might have lower education than their male counterparts thus hindering their
earning power. Also, the location they work in can be a major determining factor depending on
its cost of living, either high or low. It could also be possible that companies may offer pay
incentives depending on an employee’s level of experience and most men have more experience
than women.
11-14:
It would be advantageous to add the following elements to ensure there is no discriminative pay.
1.
2.
3.
4.
5.
End salary secrecy.
Consider an individual’s education and skills.
Look at an individual’s experience and ...
