Pay Equity, Beyond a Compliance Issue

First, what is pay equity and what is the law on this subject? Adopted in 1987 in Ontario and in 1996 in Quebec, the Pay Equity Act aims to give predominantly female jobs a salary equal to that of predominantly male jobs of comparable value, even if they are different. The goal is to provide equal pay for work of equal value and to address wage gaps for those in predominantly female jobs.

Any organization that has achieved an average of ten or more employees in a year is affected by the Act and has the obligation to carry out pay equity work.

In a context where justice and inclusivity are priorities in the workplace, pay equity is not only a legal obligation, but also a strategic lever to contribute to a climate of trust and thus promote the mobilization of talent.

Job evaluation is an essential step in the pay equity exercise. It allows for assigning a relatively objective value to jobs, which makes it possible to compare their total rewards on a common basis. For the evaluation to be optimal, it must consider various criteria, such as the qualifications required, the responsibilities assumed, the efforts required and the working conditions in which the work is performed.

Although the Act is limited to the gender binary of male and female, the impact of job evaluation promotes inclusivity in a broad sense, especially if it is applied in compensation practices, since the evaluation applies to the generic characteristics of the job, regardless of who occupies it.

By ensuring consistency and a certain level of transparency, job evaluation reinforces the perception of organizational justice and could even be, beyond the need to comply with the Act, the beginning of a more in-depth strategic reflection to build or update a total rewards structure.

It is important that the job evaluation criteria reflect the organization‘s industry to assign a fair value to the most relevant elements. For example, in the video game industry, innovation and creativity could be appropriate, while in the finance sector, precision and rigor could be more suitable.

It is important to keep in mind that certain criteria can, through unconscious biases, favour typically masculine characteristics, such as physical effort, or typically feminine characteristics, such as empathy, to the detriment of the other gender. Those responsible for choosing job evaluation criteria must therefore be made aware of these biases to develop an evaluation method that is as neutral and objective as possible.

It is also recommended to involve multiple stakeholders in the job evaluation process, such as managers, human resources specialists, union representatives (if applicable), or staff members. Certain precautions should be taken to ensure a diversity of viewpoints, which will enhance the relevance of the evaluations.

Using a tracking tool and a documented evaluation plan is a good practice that allows job evaluators to remain consistent and objective over the long term, as they will have access to a clear view of the history of past reflections. It is also easier to justify certain decisions when benchmarks are established, which reinforces the credibility of the method.

Finally, it is crucial to always dissociate the characteristics of the job from those of the people who occupy the position. This separation is even more difficult when the job has only one incumbent, but it is important to remember that it is the requirements of the job that are being evaluated. This makes it possible to avoid basing oneself on perceptions or on the individual performance of a particular person, which would result in possible discrimination.

Pay equity represents a unique opportunity to rethink compensation practices with the values of transparency, fairness and inclusivity in mind. By adopting rigorous assessment methods and educating your organization about the importance of fairness, you can not only comply with the Act, but also strengthen your position as an employer of choice. It is a strategic investment that helps mobilize your talent, enhance your employer brand and lay the foundation for a sustainably equitable and respectful organizational climate.