Page 354 - Discrimination at Work The Psychological and Organizational Bases

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13. HRM PRACTICES
Pay Equity Audit The pay equity audit is very similar to the older term
"comparable worth." According to this approach, organizations should
pay equal compensation to jobs of equal worth. "Worth" can be deter­
mined using a job evaluation system or through an analysis of unbiased
market rates. Proponents of pay equity argue that discrimination in pay oc­
curs because jobs are segregated based upon sex and also race (Blumrosen,
1979). Thus, the first step in a pay equity audit is determining if sex- or race-
segregated jobs exist. If sex- or race-based segregation exists, then organiza­
tions should study the causes of this segregation and determine whether or­
ganizational interventions can be aimed at reducing any identified causes.
In addition, proponents of pay equity have argued that the job evalu­
ation system must be shown to be unbiased (Doverspike & Barrett, 1984;
Treiman & Hartmann, 1981) by (a) ensuring that job analyses are conducted
in an objective, fair manner; (b) ensuring that raters are selected from a
range of backgrounds, are adequately trained, and provide ratings in a
bias-free manner, if a job evaluation committee is used; and (c) using a bias-
free job evaluation instrument. Once an unbiased job evaluation system is
in place, the employer can then conduct a study to determine if female-
dominated or minority-dominated jobs are underpaid, compared to the
proposed salary line. If jobs are underpaid, then the pay of those jobs can be
raised to an appropriate level. The topic of how best to accomplish this ad­
justment has been the subject of much debate (Treiman & Hartmann, 1981).
Across-the-Board Audit The basic philosophy underlying the across-the-
board audit is that current pay can reflect a host of prior discriminatory
behaviors in such areas as promotion, selection, and training. Thus, absent
group-based discrimination, current pay should be a function of merit and
should not reflect sex or race. An example of the across-the-board approach
is the glass ceiling analysis in which statistical studies of pay are conducted
within job grades.
A compensation factor that can negatively affect all workers, but in
particular older workers, is salary compression. Salary compression oc­
curs when the market causes entry-level pay to rise faster than merit pay
(Griffeth & Horn, 2001). As a result, new employees may have to be hired
at salary levels equal to or higher than that earned by experienced, older
employees.
As discussed in the recruitment section, benefit programs can be tai­
lored to enhance the attraction of minority group members. In addition
to pay, benefit programs should be audited in order to identify any pos­
sible areas where discrimination may be present. Benefit practices should
also be reviewed in order to ensure that the packages offered are attractive
to minority groups and thereby serve as an incentive during recruitment.
For older workers in particular, retirement programs, including retirement