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Building a Fair and Equitable Pay Program – 3-Day In-person Seminar  

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Seminar Summary:

Pay management is said to be a mystery – at least, that’s what many traditionalists who work in pay management would have you believe. Certainly we are entitled to some job protection. (see full course description)

 

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Training Course Syllabus:


Building a Fair and Equitable Pay Program

Pay management is said to be a mystery – at least, that’s what many traditionalists who work in pay management would have you believe. Certainly we are entitled to some job protection. The unfortunate effect is that, given the current enforcement environment, far too many organizations are caught behind the eight ball and risk hefty government sanctions for not consciously building a system that holds up to scrutiny.

Are you faced with the task of designing and implementing a pay program in your organization but don’t know where to begin?
Are you looking for a ready-do-go model you can adapt to the specific needs of your organization?
Do you want options to consider as you develop your program?
Would you like advice and guidance on the various approaches open to you?
Do you want steps to follow that will lead you through the project before you?
If you are nodding your head, you won’t want to miss this three-day highly interactive seminar.

This seminar is organized according to logical, sequential phases of a pay project. Each phase is subdivided into specific considerations or tasks, followed by a series of questions to help you analyze your situation. Exercises and examples are used to bring many of the considerations into tangible form. “How to” is what this seminar is all about. The field of pay management already has plenty of theoretical texts and you should read them too. However, in this seminar, we will focus on two concerns: strategic policy and tactical procedures.

Areas Covered:
Why start a pay project now
Planning and organizing your pay project
Obtaining commitment to pay strategies
Developing a strategic policy with practical procedures
Defining job results and qualifications
Evaluating job contributions
Converting results, qualifications, and contributions into reliable job descriptions
Evaluating the price of jobs in the marketplace
Building the pay structure
Managing job contributions, transferring results, qualifications, and contributions into reliable performance management oversight
Maintaining your pay program


Topic Background:
Pay equity is a means of eliminating gender and race discrimination in the wage-setting system. Commonly referred to as steering, many women and people of color are still segregated into a small number of jobs such as clerical, service workers, nurses and teachers. These jobs have historically been undervalued and continue to be underpaid to a large extent because of the gender and race of the people who hold them. Pay equity means that the criteria employers use to set wages must be gender- and race-neutral.

Pay equity is a growing national movement building on the progress made in the 1980s, when twenty states made some adjustments of payrolls to correct for sex or race bias. Seven of these states successfully completed full implementation of a pay equity plan. Twenty-four states plus Washington, DC conducted studies to determine if gender was a wage determinant. Four states examined their compensation systems to correct race bias, as well.

In recent years, pay equity bills have been introduced in more than 25 state legislatures. On the federal level, two bills have been introduced since the mid-1990s, the Paycheck Fairness Act and the Fair Pay Act. The Paycheck Fairness Act, which would have amended the Equal Pay Act and the Civil Rights Act of 1964 to provide more effective remedies to workers who are not being paid equal wages for doing equal work, was passed by the House of Representatives in the 110th and 111th Congresses. Hearings on the bill were held March 11, 2010 in the Senate, but it was defeated by a 58-41 vote on Nov. 17, 2010. The Fair Pay Act of 2015 would expand the Equal Pay Act´s protections against wage discrimination to workers in equivalent jobs with similar skills and responsibilities, even if the jobs are not identical, and is currently sitting in committee pending review.

On the corporate side, companies typically emphasize external equity in the design of their compensation structures. This focus on external equity enables a company to develop compensation structures and programs that are competitive with other companies in appropriate labor markets.

Perceptions of equity can also influence a company´s ability to attract, retain, and motivate its employees. Employee perceptions of equity and inequity are equally important and should be carefully considered when a company sets compensation objectives. Employees who perceive equitable pay treatment may be more motivated to perform better or to support a company´s goals. Individual employees, however, perceive equity in many different ways. Therefore, it is difficult to specify one definition of equity that is applicable to all situations.

Generally though, pay equity poses a conceptual and practical challenge: how to reconcile the company’s ability to pay (financial resources), desire to pay (image), and need to pay (labor market) with the employees’ perception of equity (fairness) and the government’s focus (legal audits). What’s clear though, is the importance of organizations to focus on and really think through strategies that work to correct even perceptions with issues of fairness within their own pay programs. Highlighting the reality that a company´s approach to equity is as important as the actual pay programs it implements.


Course Outline:
Day 1 (8:30 AM – 4:30 PM)

AGENDA Day 1

8:00 - 8:30 AM - Meet and Greet
8:30 - 9:00 AM - Introductions
9:00 - 12:00 PM - Phase 1: Why start a pay project now
Legal considerations for managing pay
Legal considerations for managing job results
Strategic considerations
Practical considerations
Developing a strategic policy with practical procedures
12:00 - 1:00 PM - Lunch
1:00 - 2:00 PM - Phase 2: Planning and organizing your pay project
An integrated program
Determining the total compensation package
Developing a master plan
2:00 - 4:30 PM - Phase 3: Obtaining commitment to pay strategies
Developing a complete proposal
How to spot the “golden opportunities” before you
Determining the right organizational methodology for pay practices

Day 2 (8:30 AM – 4:30 PM)

AGENDA Day 2

8:00 - 8:30 AM - Meet and Greet
8:30 - 12:00 PM - Phase 4: Defining job results and qualifications
Understanding the organizational reason for the jobs that exist
Preparing for the gathering of job information
Converting results, qualifications, and contributions into reliable job descriptions
12:00 - 1:00 PM - Lunch
1:00 - 4:30 PM - Phase 5: Evaluating Job Contributions, the job analysis process
Redefining job evaluation
Internal equity
Job relationships defined
Choosing the right job evaluation system
A job evaluation plan you can use
Adapting the job evaluation plan to your organization
Weighting (valuing) the factors
Calculating job evaluation plan points
Rules for evaluating jobs

Day 3 (8:30 AM – 4:30 PM)

AGENDA Day 3

8:00 - 8:30 AM - Meet and Greet
8:30 - 9:30 AM - Phase 6: Evaluating the price of jobs in the marketplace
Job value
Surveying market pay rates
Pay survey questionnaire you can use
Matching jobs
Analyzing the numbers
9:30 - 12:00 PM - Phase 7: Building the pay structure
Pay structure as a management guide
Designing and calculating the pay structure
Evaluating the new structure
Managing pay
12:00 - 1:00 PM - Lunch
1:00 - 2:30 PM - Phase 8: Managing job contributions, transferring results, qualifications, and contributions into reliable performance management oversight
Job results management strategy
Problems with performance appraisal
Job results management profile
Defining job outcomes
Establishing consistent pay management criteria
Case studies for developing consistency
Managing job contributions as a base for pay decisions
Appraising job contributions
Linking pay to job contributions
2:30 - 4:30 PM - Phase 9: Maintaining your pay program, the recertification process
Pay as a component of organizational culture
Explaining the program
Protecting the investment
Program management
Planning the pay increase budget
Ongoing adjustments
Maintenance, audits, and appeals

Seminar Summary:

Pay management is said to be a mystery – at least, that’s what many traditionalists who work in pay management would have you believe. Certainly we are entitled to some job protection. (see full course description)

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