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Pay equity is equal pay to all employees. Doing well at your job with lots of experience can influence pay. Without equal pay, some employees may quit. For example, someone works as a cashier at Walmart and makes ten dollars an hour while someone works another year extra than the cashier at Walmart and makes eleven an hour the person making ten dollars an hour would want eleven dollars an hour despite experience because it is the same job. Another example of pay equity could be that two new hires are hired at the same time as an entry level human resource job and both hires make twelve dollars an hour.

Full time female workers should make the same as full time male workers despite gender issues. Discrimination in prohibited for gender pay issues like female workers make less than male workers. If discrimination does occur even with laws in place there could be consequences. If female and male workers are doing equal work, they should be paid the same based upon experience and skills. The act that does not allow for pay discrimination is the Equal Pay Act (EPA).

The EPA has not have had many claims pertaining to unequal pay based upon gender page 5. Without the EPA, there would be more pay discrimination in any workplace. The Lily Ledbetter Act helps prevent against pay discrimination. Compensation could be affected on the basis of whether discrimination pay happened or not. The statistics for gender gap are below average.

Employees need to have a fair pay practice in place because HR professionals ensure the practice. Employees that have disabilities need submission wages with the federal wage law. Commissions and bonuses can also be discrimination. Pay decisions need a self-evaluation which include the following. Promotion pay policies, merit policies and start pay policies are reviewed.

The self-evaluation is confidential. Pay structures are reviewed. Recordkeeping is reviewed. Companies need confidentiality of self-evaluation to maintain trust with their employees. If employees knew that self-evaluations are not confidential, then they would quit.

The pay structure is key for HR professionals to look at.

An example of the pay structure would be if someone has been at a company for two years want is promoted. This is a promotional pay increase. Starting pay is what the person gets when they first start their HR job. A person could get a five percent increase if there performance is good. This is a merit pay increase.

The different levels of a pay structure determines who gets paid the most to least depending on position and experience. An example of a pay structure could be with the different pay levels, what is each persons job? By having pay policies in place this will help determine what pay decisions should be made. HR play a major role in checking pay policies. They may have to modify the pay policies to be correct.

Salary history for job candidate should be considered so that when move to a different company they already know how much they should pay that employee. An example of a increase in base pay could be five percent added based on meeting work deadlines. Merit pay should be given when meeting work deadlines occur. Promotional pay depends on length of employment and also depends on performance. IF HR professionals don’t change pay policies, they could get fired.

In an organization pay increases should be monitored in case of someone finding out that this employee performs better than me and has been here the same length of time could be a problem. If these are not monitored the company could be in serious trouble. Moving up the ladder could be a factor in determining an increase in performance pay. Pay decisions must be audited for organizational purposes. Auditing collects data for HR professionals to look over. Audits are a good way to see how the business is doing on a financial basis.

Human resource information systems are crucial in the success of a business. Gathering data helps HR professionals to keep track of information. Audits for compensation need to be taken to see whether or not people are getting paid correctly or not. If an pay error occurs, HR should correct it. Without audits, no one would no if are any pay errors. An example of a pay error would be if someone is paid hourly $10 and has good performance the whole time that they have worked at an organization and the base pay increase of two percent is not included. Another error could be if someone has a base pay of five percent but when the audit occurs it is less than that five percent.

Robust questions for equity include the following. What consequences would happen if self-evaluations were public? What challenges would occur if a company has an inaccurate pay structure? What would happen if someone knew about another’s merit pay even though both people have done the same job for the same length of time? What implications would occur if a pay policy is not corrected?

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