The report also says Canada has only shown a 0.2 percentage-point decline in the overall wage parity score since WEF last checked. At this rate, we need 95 years to close the gender pay gap in Canada. 

In Ontario, there is a gender pay gap of 13% that deeply impacts racialized, newcomer, Indigenous, and trans women and women with disabilities. 

But despair not, there’s still hope to join this battle against the pay equity gap in Canada. At Miss Nyawira Giks HR, our eyes light up when someone says pay equity because we believe in fairness for all. 

Contact us to begin your journey toward pay equity.

What is Pay Equity?

Before we implement the solution, we have to understand what it is.

So, what is pay equity?

Pay equity is when employees are paid equally for the same or similar job duties — regardless of their identity factors, such as gender, ethnicity, age, or other characteristics unrelated to their job skills and performance.

Why is Pay Equity Needed?

We could give you hundreds of reasons why pay equity is needed, but we’ll keep it short and sweet.

Employee encouragement

Wage inequities can demotivate underpaid employees and decrease overall workplace morale.

Employee productivity

Workplaces that value diversity keep employees happier and incentivized to be productive and perform at their best.

Employee loyalty

Pay equity attracts top talent and reduces turnover by increasing staff loyalty.

Legal compliance

Complying with pay equity legislation helps organizations avoid potential lawsuits or discrimination-related penalties.

Positive organizational reputation

Prioritizing pay equity, diversity, and inclusivity gives companies a positive industry reputation. This can also increase brand loyalty, customer trust, and community goodwill.

Compliance with corporate social responsibility (CSR) standards

Pay equity is increasingly viewed as a core CSR component. Through fair compensation practices, organizations demonstrate their commitment to ethical business conduct and social justice.

Stronger bottom line

In our experience, spending more on equal compensation is an investment that strengthens a company’s bottom line because it gives employees confidence in their relationship with their employer.

Common Hurdles in Achieving Pay Equity

To solve a problem, we must dig into the causes of the issue as well. Here’s what research shows could be the possible reasons why Canada is still behind in pay equity.

• Specific demographic groups may either be underrepresented or overrepresented in a job category, which could lead to gaps in pay equity.
• Women generally tend to be caregivers in a household, whether for children or elderly family members, leading to a need for more time away. Companies tend to invest less in employees they mislabel as ‘unreliable’ workers.
• It’s 2024, and we still don’t have enough women taking on leadership roles to advocate for other women or blaze a trail.
• Implicit and unconscious biases lead to distorted hiring and compensation practices.
• Studies have shown that women are less likely to negotiate for higher pay.

How Do We Fix Pay Equity Gaps?

It isn’t all doom and gloom when it comes to pay equity. There are solutions, but they require some bravery.

Take it head-on

The numbers tell it all, so monitor the gender pay gap in your company by auditing salary data.

Offer workplace flexibility

Adopt a workplace policy that doesn’t force employees, especially females, who tend to be the main caregivers, to choose between family or work.

Change the incentive structure

Reward your employees for their quality of work, not how many hours they put in. Using the latter criterion disproportionately singles out those who have unavoidable household responsibilities.

How HR Can Help Attain Pay Equity

Pay equity can be a complicated and intimidating concept for most, but we’ve done this so many times that it’s become second nature for us. We’re happy to review the steps you can take to become a pay equity champion.

Creating a pay equity structure

HR professionals work with employees to gather market data on comparative wage rates to assess if their compensation practices are fair.

Internal support for employees

A key feature of adopting fair pay equity practices is to be transparent. An HR team can help field queries from employees who want to understand the company’s pay equity policies.

Application of compensation legislation

Federal and provincial governments have enacted pay equity laws to protect employers and employees, and HR professionals are constantly studying these rules. Hence, they can easily help design and implement related policies.

Companies can do a lot around pay equity to show their staff members they care about them. Want to know how you can do that? Let’s talk.

The post The Crucial Role HR Plays in Pay Equity appeared first on Miss Nyawira Giks.

Fractio-what, you say? Don’t worry, we’ll explain.
When Miss Nyawira Giks HR first started offering fractional HR several years ago, that was the first question clients asked us. The concept, like anything new, was mysterious, and understandably business owners were cautious about it.

Just as we did back then, we’ll simplify the concept of fractional HR in this blog post. We’ll even use examples to show its benefits.

Fractional HR is a match made in heaven for the Miss Nyawira Giks HR team. We have years of experience providing businesses with customized HR solutions in compliance, recruitment, employee management, training, and more.

Contact us today and learn how fractional HR services can revolutionize your business operations.

What is Fractional HR?

Fractional HR, also called part-time HR or on-demand HR, means hiring HR professionals to address specific organizational needs. This way, companies can access HR specialists for targeted and efficient support.

On-demand HR is a flexible and cost-effective solution for businesses looking to enhance their HR functions without the commitment of a full-time team. Part-time HR specialists streamline organizational HR processes, improve efficiency, and focus on driving overall business success.

Benefits of Fractional HR

Having done this for years, we’ve seen the usefulness of fractional HR firsthand. If you’re asking yourself why do I need fractional HR? We’ve got a few reasons.

Cost-Efficient Employee Management

Businesses constantly need employee onboarding assistance, so instead of hiring a full-time HR team, they can engage fractional HR specialists for a specific number of hours, saving on overall labour costs.

Flexible Solutions

Working with fractional HR allows businesses to scale up or down as recruitment needs increase and decrease, ensuring resources are allocated efficiently.

Access to Specialized Expertise

Companies may require expertise in only one business aspect, not all HR matters. Hiring on-demand HR specialists can provide targeted support minus the overhead of a full team.

Access to a Diverse Team

Companies have diverse employees, so their HR also needs to reflect diversity in its approach. Hiring an outside HR team ensures a variety of perspectives and access to multiple HR experts simultaneously.

Customized Solutions

A fractional HR firm can present personalized HR solutions unique to your company.

Access to Expansion Options

On-demand HR saves on larger HR costs, letting companies invest in operations expansion.

Common Scenarios for Fractional HR

We believe in showing rather than telling, so here are a few examples demonstrating the magic of fractional HR.

Recruitment and Staffing

A growing e-commerce company uses on-demand HR to manage peak season hiring for a smooth recruitment experience.

Employee Training and Development

A growing business brings on a fractional HR firm to design and implement employee training programs, focusing on skills relevant to their industry and business goals.

Compliance and Policy Development

An organization uses part-time HR to ensure policy compliance to reduce legal risks and promote a safer workplace.

Taking the First Steps

Here are some steps you can take to assess your fractional HR needs.

Identify Specific HR Requirements

Analyze your company’s operations to determine which HR functions would benefit most from support.

Select the Right Fractional HR Partner

Look for HR professionals with expertise in your industry and specific areas you need assistance with. Check references and reviews to ensure a reliable partnership.

Establish Clear Communication Channels

Set up regular meetings and communication channels to keep the fractional HR specialist aligned with your organization’s goals and ensure seamless integration into your team.

Selecting a Fractional HR Partner

Identifying the best Fractional HR partner is crucial. Keep these key factors in mind when evaluating on-demand HR partners.

Expertise and Specialization

Look for a fractional HR partner with expertise in areas specific to your organization’s needs. Whether it’s recruitment, compliance, employee relations, or training, ensure their skills align with your requirements.

Industry Knowledge

Consider a partner who understands the nuances of your industry. A fractional HR specialist familiar with the challenges and trends in your sector will address your organization’s needs effectively.

References and Reputation

Check for references and reviews from other clients. A reputable on-demand HR partner should be able to provide testimonials or case studies demonstrating success.

Communication Skills

Ensure your fractional HR partner can communicate clearly, understand your organizational culture, and adapt their communication style to align with your team.

Flexibility and Scalability

A part-time HR partner should be able to adjust their support as your business grows or its HR needs change.

Technology Adoption

Look for firms that use HR software, data analytics, and other tools to streamline processes and provide valuable insights.

Proactive Problem-Solving

A forward-thinking fractional HR specialist will not only address current issues but also prevent potential future problems.

Cultural Fit

An on-demand HR firm that understands and integrates well with your company culture will contribute more effectively to your team.

Want to know more? Contact Us for a conversation about how fractional HR support is the solution to your business problems.

The post Unlocking Organizational Efficiency and Flexibility with Fractional HR appeared first on Miss Nyawira Giks.

But what’s HR got to do with it you ask? Well, human resource specialists aren’t legal tax experts, but we play a pivotal role in administering payroll and taxes. These are two priority topics we discuss with companies into the new year.

Tasks, such as preparing T4 slips, making payslip amendments, tracking overpayments, preparing compensation packages, ensuring pay transparency compliance, and determining employee benefits structure affect payroll.

Miss Nyawira Giks HR Consultants offer customized fractional HR services that support business payroll tasks so you’re always prepared for tax season. We’re also knowledgeable in a variety of legislation, such as compensation, employment standards, employee benefits, and pay transparency, and can review and create policies to ensure compliance.

In this article, we will talk about the important role HR plays in keeping a company’s payroll on track for tax season.

We specialize in helping businesses deal with tedious payroll tasks that are required for tax season. Contact us today to learn about how our fractional HR services can make your payroll seamless.

Understanding HR’s Role in Tax Preparation

The human resources department handles all business affairs from hiring, onboarding, maintaining, to firing, etc.

Another important role HR plays is the administration of salaries and related documents needed during tax season. In Canada, tax slips are issued by the last day of February each year so employees can file taxes for the preceding year.

Where HR professionals aren’t the ones who file taxes, we work closely with the finance department on all related matters. We also make sure businesses are compliant with all related payroll legislation.

Employees can be classified in several ways, such as full-time, part-time, contractors, etc. Employee categorization can also vary according to compensation packages.

HR Tasks in Payroll Management

In many ways, HR becomes the oil that keeps the company machinery going. HR experts do more than prepare tax slips at the end of the year.

Understanding and implementing labour laws

HR experts have in-depth knowledge of labour laws and standards, which they use to keep the company compliant and avoid penalties. It’s also the HR team’s responsibility to constantly monitor changes to legislation to ensure company policies are being updated as required.

Fielding employee queries

Payroll calculation is a technical task done by people with extensive knowledge in the field. HR staff members are the go-to experts whenever employees need help understanding exactly how their payroll amounts are calculated.

Preparing payroll data

Most companies use payroll systems that allow them to track payroll activities all year. HR experts are highly skilled at managing such systems to record and report back on data gathered. This information can feed into long-term business strategy.

Handling employee benefits

HR professionals can help companies understand employees’ needs to determine the most efficient and effective benefits packages.

Managing fair compensation practices

HR staff are also well versed in fair compensation laws and can guide companies around such practices. Fair wage policies show staff that the employer values them.

Other HR staff tasks in payroll

As the workforce diversifies, companies need to stay on their toes to attract, hire, and retain top talent. HR experts can do this by preparing proper job descriptions, determining fair wage practices, and researching the best employee benefits packages according to specific staff needs.

Here’s what else HR professionals will look after among other payroll tasks.

Organizational changes that impact company tax benefits

Sometimes corporate reorganization can lead to changes in payroll, which leads to changes in the tax benefits a company receives

Some companies have a global workforce, leading to unique payroll needs.

Bonuses, overtime, and vacation pay

Businesses that miss out on calculating these crucial payment categories can get in trouble. But at Miss Nyawira Giks HR, we track all payroll categories closely to make sure you don’t end up paying any penalties.

Other employee benefits to track

HR also keeps an eye on any fringe benefits your company offers employees.

• Education-related reimbursements
• Gym memberships
• Employee loan discounts
• Any other cash benefits
• Vacation accrual and time off used
• Severance pay
• Parental or bereavement leave impact on pay

Technical Payroll Matters HR Looks After

Human resource experts take the long-range view and use their skills to keep companies compliant with all compensation and labour policies. HR specialists will constantly track new legislation and learn how it should be implemented so companies do not end up paying heavy penalties.

The HR team:

• Makes sure the company’s compensation policies are up-to-date
• Keeps the business compliant with pay transparency legislation
• Determines overall compensation strategy and treatment according to law
• Works with C-suite to determine what the income policies should cover as required by legislation
• Prepares expense-related rules for companies

Keeping Payroll Procedures Updated

• In the three years or so, companies have had to think on their feet as they’ve had to allow most employees to work from home. Working from home meant staff members could claim expenses in home utilities in their taxes. That may not continue to happen for some companies now, but whatever the policy change, it needs to be communicated clearly and openly to employees so they know how it will impact their taxes.
• Similarly, employees may be using personal technology items, such as phones or laptops, for work, expenses for which can be tax deductible.
• During the pandemic, a part of the workforce has turned to gig work. That means companies may have fewer people on full-time payroll, but contract work hours still have to be tracked by HR.

What to do After Tax Season?

First of all, take a deep breath. You made it through.

Secondly, start preparing for next year’s tax season now so you reduce your chances of rushing to get things done.

• Consider using a good payroll platform that will help you track all related activity
• Sit down with your HR team to review your compensation policies
• Have a chat with your HR department about labour law updates
• Put some thought into how you can strengthen your offerings so your employees feel valued

Handling all this on your own can be a bit challenging, especially with all the policies that are subject to changes in laws and legislation. Reach out today for fractional HR support in staying on top of your payroll and taxes.

The post Easy Steps for Payroll Readiness During Tax Season appeared first on Miss Nyawira Giks.

“For companies, it’s the canary in the coal mine,” says Paola Accettola, CEO & Principal Consultant at Miss Nyawira Giks HR. “It’s important to pay attention to it.”

Salary transparency is not just about numbers; it’s a pivotal stride toward wage fairness, dismantling gender and racial wage gaps, and empowering employees with the knowledge they need to advocate for their worth.

As the pay equity movement picked up steam over the years, the government stepped in with legislation, the Pay Transparency Act. It was assented to in 2018, but implementation has been a long time coming.

Having legislation in place is one step toward achieving pay equity, but bringing companies into pay transparency compliance is a whole other ball game.

In this blog, we talk about the implications of Ontario’s pay transparency legislation and how businesses can be compliant.

Miss Nyawira Giks HR specializes in helping businesses avoid costly penalties by becoming compliant with all sorts of legislation. We provide customized solutions for clients who want to achieve pay equity. Contact us today to become compliant with pay transparency.

What is Pay Transparency?

Pay transparency means openly sharing compensation package information with employees and prospective candidates. Each company practices pay transparency differently.

Some provide details about how salaries are determined, others disclose salary ranges, and some even share individual employee salaries. The overall goal is to encourage openness and create trust around pay practices.

“The legislation will force employers to look at their pay practices, carefully, and strategically,” says Paola. “Pay transparency holds leaders accountable for fair and equitable compensation that aligns with the market.”

Pay transparency creates a fair playing field for all employees and encourages the participation of women and minority groups in the workforce.

Key Features of Ontario’s Pay Transparency Act

Before you get cracking on improving your pay transparency practices, let’s walk through the main points in the legislation.

Compensation History

Employers cannot ask candidates for compensation history in any way, whether personally or through an employment agency. These rules don’t apply if such compensation history is publicly available, such as for government employees.

Unprompted Disclosure

Applicants can voluntarily disclose their compensation history.

Comparable Compensation

Employers can collect information about comparable ranges of compensation for a job.

Use of Information

If an applicant voluntarily declares compensation history and the employer collects market information on salaries for the job posted, the company can combine this information to determine fair compensation.

Posting Salary Range Online

All employers are required to share pay details in job postings.

Further Rules in the Pay Transparency Legislation

There are some additional reporting requirements that will also fall on the employers.

Pay Transparency Reports

Employers with 100 or more employees are required to submit annual reports to the Ministry of Labour by May 15 of the following year. Yes, this is an additional piece of work companies have to bear, but our fractional HR services support just such tasks.

Sharing Reports Online

Businesses are required to post their pay transparency reports online, externally, and internally for employee awareness. The ministry will also publish these reports in an open forum.

Protection for Employees

Overall, this legislation provides employees several protections, such as

• No reprisal for inquiring about compensation packages
• Freedom to disclose their salary to a peer
• Ability to raise questions on the pay transparency reports
• Confidence to lodge non-compliance complaints with the ministry, and
• Ability to ask employers to comply with pay transparency regulations

Pay Transparency Advantages for Employers

Becoming compliant, Paola says, may sound like hard work, but it has many plus points. Pay transparency does a lot for companies, such as

1. Giving leaders a chance to evolve
2. Helping employees seize growth opportunities in a company
3. Showing that the company is invested in its employees
4. Attracting top candidates
5. Showing the company’s ability to shift culture toward equity

What do Businesses Need to do to Achieve Pay Transparency Compliance?

From experience, we know how hard it is to find candidates that fit the bill. Most qualified candidates hesitate to apply when they’re not clear about the compensation. Following this law will help you attract the right talent to move your business forward.

Top candidates are already asking questions about pay transparency, says Paola. But underlying biases in hiring practices distort pay offerings. Candidates may hesitate when it comes to pay negotiation because of a defensive stance taken by leaders.

“Candidates that ask you hard questions push you to become better,” she says. “These are the kinds of candidates that will invest in the company.”

Dealing with any new legislation tends to reveal gray areas in company policies. You may find you don’t have a clear set of parameters around compensation. Embracing pay transparency can result in an internal reshuffling of pay scales the next time you’re seeking candidates for the same position.

“You can pay competitively, do right by your employees, and protect your bottom line,” says Paola.

Here are some steps to take to achieve compliance:

• Review current policies to identify missing pieces
• Calculate wage data to identify gaps
• Prepare a full transparency policy to apply not only to future candidates but also to current ones
• Effectively communicate changes to your employees. Remember to thoroughly address any concerns they may have
• Track your pay transparency activities to generate a report
• Post report online for all to access and read

Handling all this on your own can be a bit challenging, especially with new laws and legislation. Contact us today for support in achieving pay transparency compliance.

The post How to be Compliant with Ontario’s Pay Transparency Act appeared first on Miss Nyawira Giks.

However, as an employer, navigating the waters of policies and procedures related to pay transparency can be challenging. In this post, we’ll examine the relevant laws and processes related to pay transparency for Ontario workplaces and how you can stay compliant.

Understanding Pay Transparency Legislation

To foster a more equitable and inclusive workforce, pay transparency legislation stands as a beacon for fair employment practices. This legislation, aimed at addressing wage disparities and enhancing workplace equality, is rooted in the principle of empowering employees through greater transparency in compensation.

With new legislation announced in fall 2023, posting salary ranges on job postings will become part of pay transparency in Ontario. As this law comes into effect, it’s vital for employers to stay informed about its specific details, including the effective date and any recent amendments, to ensure compliance.

Implications for Employers

Pay transparency laws necessitate changes to recruitment and hiring practices and often prompt a review of existing compensation structures. Non-compliance may result in legal consequences, making it imperative for employers to align their practices with the legislative requirements.

The legislative framework is designed to dismantle long-standing barriers by requiring employers to disclose compensation information and create a more level playing field. The overarching goal is to eradicate gender and other discriminatory wage gaps, promoting fairness and equity across diverse work environments.

Promoting Fair Compensation Practices

One of the primary objectives of pay transparency legislation is to encourage organizations to adopt fair compensation practices. This mandate for transparency compels employers to critically assess their pay structures, ensuring that compensation is commensurate with skills, experience, and responsibilities. This not only benefits employees by providing a clear understanding of their worth within the organization but also ensures fairness based on performance and capabilities.

Enhancing Workplace Equality

Beyond merely addressing financial disparities, this legislation seeks to enhance workplace equality. Employers are prompted to confront and resolve systemic issues that may contribute to inequality by shedding light on compensation structures. This, in turn, creates an environment where all employees, regardless of gender or other factors, have an equal opportunity to thrive and advance in their careers.

Empowering Employees

The legislation places a significant emphasis on empowering employees through knowledge and transparency. Access to information about salary ranges and compensation structures equips individuals to negotiate fair wages confidently. This empowerment is crucial to breaking down historical imbalances and fostering a workforce where every employee feels valued and respected.

Long-Term Impact

Pay transparency legislation aims to bring about a cultural shift in how organizations approach compensation, challenging them to adopt practices prioritizing fairness and equality. By promoting a more transparent and informed employment landscape, Ontario’s pay transparency legislation will set the stage for a future where every employee can contribute and succeed based on merit and capability.

Pay Transparency Laws in Canada

As of December 2023, Canada has seen a gradual but limited adoption of pay transparency laws. While not yet a nationwide standard, several provinces, including Ontario, with its recent proposal, have implemented such legislation.

Current Pay Transparency Laws

In Prince Edward Island (P.E.I.), Newfoundland and Labrador, and Nova Scotia, pay transparency legislation is enforced such that penalties are tacked onto businesses who fail to comply with the law. Here are some key details concerning P.E.I.’s regulations:

• Employers are prohibited from requesting an applicant’s pay history but can ask about salary expectations. 
• Public job postings must include expected pay details. 
• Employers can’t retaliate against employees for discussing pay or seeking compliance with the new Pay Transparency Act sections.

In British Columbia, similar pay transparency measures exist, without imposing penalties. Key aspects of British Columbia’s legislation are:

• Employers must disclose salary information in job advertisements.
• Inquiries into an applicant’s past compensation are prohibited.
• Retaliation against employees for discussing their pay or pursuing compliance with the law is prohibited.
• Additionally, the province mandates annual transparency reports from employers.

Pay Transparency Laws in Ontario

There are two main bills specific to pay transparency in Ontario:

1. The Pay Transparency Act, 2018 aimed to promote fairness by requiring job postings to include salary ranges. It prohibited employers from asking about applicants’ past earnings, fostering equal opportunities and transparency in hiring, aiming to address pay disparities and encourage equitable compensation practices.
2. The Working For Workers Four Act, 2023 has received Royal Assent in Ontario (accepted by the Lieutenant Governor). When it comes into effect, it will require a few changes for employers, including disclosing salary ranges and using AI in job postings.

When Pay Transparency Comes into Effect

The Working for Workers Four Act received minimal revisions upon its introduction and received Royal Assent as of October 26, 2023. The Government of Ontario made an official announcement on November 14 detailing the specifics of the act. While a definitive date for its enactment has yet to be set, indications suggest it will likely come into effect sometime in 2024.

How Employers Can Prepare

As the new pay transparency laws are poised to be enacted in Ontario, it’s essential for employers to conduct a thorough assessment of their current pay practices in the interim. Employers will likely need to proactively implement changes within their organizations once the law is enacted, so a proactive approach can help prepare and stay ahead of the curve. This involves a multifaceted process encompassing structural adjustments and improved communication strategies to ensure compliance.

Once enacted, adhering to timelines for reporting and disclosure will be crucial for maintaining ongoing compliance.

Implementing Changes 

Organizations should conduct a comprehensive review of their existing pay structures to identify any disparities that may be present. This process may involve conducting pay equity audits, analyzing compensation data, and assessing the overall fairness of remuneration across different roles and levels within the company. Where necessary, adjustments should be made to rectify any discrepancies.

Fostering Transparency

Beyond meeting what will be the minimum legal standards, successful compliance with pay transparency legislation necessitates a commitment to fostering transparency in communication regarding compensation. Employers should look into developing clear and accessible channels for employees to understand the factors influencing their pay, such as performance metrics, experience, and job responsibilities. This transparency contributes to a positive workplace culture built on trust and openness.

Training and Education

Ensuring employees at all levels understand the significance of pay transparency and their role in its implementation is crucial. Employers should invest in training programs to educate HR professionals, managers, and employees about the legislation, its objectives, and the steps being taken to comply. This proactive approach not only aids in the smooth implementation of changes but also cultivates a shared understanding of the importance of pay equity within the organizational culture.

Adhering to Timelines

Employers must stay on top of reporting requirements and disclosure deadlines to avoid legal repercussions. This involves establishing robust internal processes and systems for collecting, analyzing, and reporting compensation data within the specified time frames. By doing so, organizations demonstrate a commitment to transparency and accountability, reinforcing their dedication to fair employment practices.

Continuous Monitoring and Adjustment

Achieving and maintaining compliance is an ongoing process. Employers should establish mechanisms to monitor their pay structures, regularly reviewing and adjusting compensation practices as needed. This commitment to constant improvement ensures compliance with the legislation and reinforces an organizational culture that values fairness and equality in compensation.

How We Can Help

At Miss Nyawira Giks, our services include intelligent and quality pay equity and policy compliance support. From consultation and advisory services, we provide comprehensive assistance in navigating the complexities of pay transparency legislation.

Pay equity is not just about compliance; it’s about recognizing each employee’s value. By extension, pay transparency equips employees with the knowledge necessary to make informed career decisions. 

Pay Equity

The Pay Equity Act, a cornerstone in addressing societal pay fairness issues, including gender and age discrimination, guides our consulting approach. Our team’s deep understanding of this legislation enables us to offer tailored advice for businesses of all sizes and types, from for-profit entities to non-profit organizations. Our consultancy ensures that your business meets legal requirements and fosters a fair and equitable work environment.

Policies and Diligence

When you choose to work with us, expect comprehensive solutions for your compliance and legislative concerns. Our expert team provides tailored policies and diligent strategies to ensure adherence to evolving regulations. From drafting robust HR policies to conducting due diligence assessments, we navigate the complex compliance landscape, minimizing risks and maximizing adherence. We specialize in addressing employment laws, privacy regulations, and industry-specific standards, offering proactive guidance to mitigate legal exposure. 

Recruitment

Talent acquisition meets expertise with our staffing and recruiting services. We specialize in sourcing top-tier candidates across industries. From crafting job postings with pay transparency in mind to presenting a qualified candidate shortlist with interview recommendations, we’re with you at every stage. Our expertise spans job postings, candidate screening, adept interviewing, honing interview skills, and conducting thorough reference checks.

Working with Miss Nyawira Giks

Mastering the intricacies of pay transparency legislation in Ontario is a legal necessity and a strategic move toward fostering a fair and transparent workplace. By understanding the legislation, implementing necessary changes, and proactively preparing for compliance, employers can meet legal obligations and contribute to a more equitable and inclusive work environment.

Operating a business in today’s landscape is undoubtedly challenging. Our Miss Nyawira Giks team leaves no chances when it comes to ensuring pay equity and compliance for your organization. To learn more, reach out to us.

The post Decoding Pay Transparency in Ontario: A Guide for Employers appeared first on Miss Nyawira Giks.

Pay gap awareness has become apparent in the last century, but the struggle to achieve parity is ongoing. Even today, Canadian women only earn $0.89 for every dollar a man makes. While all generations agree that pay equity is important, they have different perspectives and priorities on achieving it.

In this article, we’ll explore some viewpoints on pay equity in today’s multi-generational workplace and how businesses can foster approaches to ensure all employees are valued.

Understanding the Generational Divide

According to the 2021 census, there are 23.9 million working-age Canadians, ranging from 15 to 64 years of age. Most have the same expectations from their jobs—fair compensation, stability, and acknowledgement. However, their views are shaped by social and economic forces during their formative years and early career development.

To set the stage, let’s look at each generation’s workplace attitudes, keeping in mind that each group has diversity.

Baby Boomers (1946-1964)

Baby boomers were born between 1946 and 1964, making up 19.7% of working-age Canadians. While some have retired, many work longer than previous generations because of flexible opportunities, the demand for their skills, and the desire to stay active and independent.

Growing up in a prosperous post-World War II era, this generation values hard work and success. Most baby boomers in the workplace are accustomed to traditional, hierarchic environments. They tend to stay with the same company for long periods, expecting job security, benefits and the chance for career advancement in return.

Generation X (1965-1980)

Gen Xers were born between 1965 and 1980 and comprise 29.5% of working-age Canadians. They saw significant shifts in traditional workplace structures compared to the previous generation. Rapid technological advancement and globalization meant companies faced increased competition, laid off employees and outsourced work. Digital communications changed how work was done inside and outside of the office.

This generation’s identity is less tied to the workplace than boomers. They’re willing to change employers if dissatisfied, although stability is important as they advance their careers and save for retirement.

Millennials (1981-1996)

Millennials were born between 1981 and 1996 and comprise one-third of working-age Canadians. Sometimes called Generation Y, some millennials started their careers during the 2008-2009 recession, which widely impacted job prospects. Their struggles continued as the pandemic took hold in 2020, which made financial security an ongoing challenge.

This generation is questioning traditional workplace norms. They believe they should be valued for what they accomplish and not the hours they’re at a desk. They prefer autonomy and flexibility and may be involved in the gig economy and side hustles.

Generation Z (1997-2012)

Born between 1997 and 2012, Generation Z makes up 17.6% of working-age Canadians. Immersed in digital media from an early age, this generation is drawn to innovative tools and workplace efficiency. They appreciate flexible work arrangements and an opportunity to impact how things are done. Gen Z also sees work as a way to express their identities and want fulfilling employment. A strong sense of social responsibility shapes their views.

Pay Equity Through the Generations

When it comes to pay, there has been generational inequity over the years. In the 1950s and 1960s, many women were employed in low-paying, predominantly female professions because men were considered primary breadwinners. Later, working women who became mothers experienced a loss in earnings known as a “motherhood penalty.”

The gender gap is narrowing, but progress is slow. In 1998, the hourly wage gap between men and women aged 25 to 54 was 18.8%, according to Statistics Canada. By 2018, this had narrowed to 13.3%.

It is important to note that pay equity differs from pay equality. Pay equity, or “equal pay for work of equal value,” is based on the notion that different jobs can provide similar value to a company and should be compensated equally. This differs from “equal pay for equal work,” which refers to equal compensation for people performing the same jobs.

A number of government initiatives have been introduced to help close pay gaps, acknowledging it is a systemic problem. Canada’s Pay Equity Act was introduced in 2018 for federally regulated workplaces. This requires regular pay equity analysis: 

1. Reviewing job classes.
2. Determining if they’re predominantly male or female.
3. Assigning value to the work.
4. Comparing compensation for gaps. 

Many Canadian provinces have also enacted pay equity legislation or formal policy frameworks. In addition, Ontario recently announced legislation requiring employers to specify a salary range in job postings. This is designed to make clear to job seekers what compensation they can expect.

Generational Perspectives on Pay Equity

From baby boomers to Gen Z, Canadians have dealt with different types of generational inequity through the years. The socioeconomic conditions of the times impacted each generation’s experiences and the kinds of issues they tackled.

Baby Boomers

As civil rights and women’s liberation movements brought equality issues to the forefront, baby boomers began questioning traditional values. Pay gaps were highlighted as more women entered the workforce. Women dominated clerical, administrative, teaching and nursing roles, but the lower pay ranges emphasized disparity. Women in law, business, and medicine earned more but still found pay gaps compared to men. The feminist movement helped build momentum as boomers pushed for equity.

Generation X

Generation X saw more women moving into executive and management roles, emphasizing the need to compensate employees based on merit and qualifications. However, a new wrinkle came to light: As women paused to have families and care for young children, they put their careers on hold and experienced a drop in earnings that lasted up to 5 years.

Many Gen Xers faced the added burden of caring for elderly parents. The push for flexible work arrangements helped employees better balance their work and personal lives. Companies began providing maternity leave programs to complement the federal government’s expanded maternity and parental leave programs.

Millennials

Millennials are the most ethnically diverse generation of adults, giving them a keen sense of equality. More than half of the immigrants to Canada between 2016 and 2021 were millennials, according to Statistics Canada.

This generation has benefited from work done by boomers and Gen X. Pew Research reports that millennial women are closer to parity with men at the start of their careers than previous generations. In 2012, the hourly wages of women aged 25 to 34 were 93% compared to that of men. Despite these positive steps, millennials are still tuned in to discrimination of all types in the workplace and often see the need for pay equity as a collective one.

Generation Z

Gen Z is keenly aware of social issues such as #MeToo, Black Lives Matter, poverty, climate change and LGBTQ+ rights. In a recent study by Abacus Data of top issues facing Canada, Gen Z was more likely to cite a social concern than other generations. They believe in collective action, accountability, and inclusivity and have seen the power of social media for sharing stories of injustice and online advocacy.

As this generation enters the workplace, they tend to support diversity and inclusion initiatives and want to remove barriers that impact equity. They’re also more likely to feel empowered to open dialogues and create better work environments. One challenge for businesses with Gen Z is that they may leave for another job when a workplace doesn’t align with their values.

Workplace Initiatives and Policies

While federal and provincial governments are beginning to model pay equity policies, businesses can also address barriers and systemic inequality:

• Declaring equity as part of the company’s core values.
• Performing regular pay audits.
• Supporting job sharing, part-time work and flexible arrangements.
• Providing benefits such as childcare and parental leave benefits.
• Offering training and reskilling to open new career paths.
• Encouraging staff to pool knowledge to create generational equity.
• Providing transparency about compensation and wages.

Disclosing pay data can have a significant impact, with one study showing up to a 45% reduction in the pay gap by organizations that are transparent. However, not all employees are at ease with revealing their salaries. A LinkedIn survey showed that 81% of Gen Z supported the concept of pay transparency. At the other end of the scale, only 28% of baby boomers agreed. 

Overcoming Generational Gaps

While each demographic understands the philosophy behind pay equity, they have different comfort levels. Typically, each generation is progressively more accepting of equity policies, although individual attitudes depend on a person’s values, financial status and life stage.

• Baby boomers are often wary of how pay equity impacts traditional hierarchies and workplace structures. They may not be comfortable with what they perceive as disruption as they seek security nearing retirement.
• Generation X, who have invested years of service in the workplace and acquired significant skills and experience, will want reassurances that their contributions and performance continue to be rewarded alongside pay equity initiatives.
• Millennials are likely more open to workplace equity initiatives, including how gender pay gaps intersect with factors such as ethnicity and ability. They appreciate open communication about policies and results.
• Generation Z is likely to support pay equity programs but wants to see it as a meaningful reflection of a company’s values rather than a superficial gesture.

Companies can manage generational gaps through clear communication and genuine engagement. Outline the purpose behind policies so employees understand the reasoning for them, welcome questions and concerns, and provide transparent reporting on progress. Then, gather feedback from employees and work to adjust strategies.

The Future of Pay Equity

Each generation has made its contribution to advancing the pay equity agenda.

• Baby Boomers: As the feminist movement took hold, baby boomers called for women’s equality in society and the workplace. They made initial progress in drawing attention to the issue but are likely now more focused on their financial security and retirement.
• Gen X: These individuals set the stage for flexible workplaces and maternity benefits. Their role in pay equity focuses on work-life balance and support for those raising and caring for families.
• Millennials: This group is actively playing a role in advocating for diversity initiatives alongside pay gap issues. They’re highlighting disparity for people of colour, indigenous people, and those with disabilities.
• Gen Z: Their work is concentrated on influencing overall equality in the workplace. They’re poised to make a significant impact in the coming years because of their willingness to advocate and a strong belief in accountability.

Final Thoughts

A company’s compensation policies influence how well it attracts and retains talent. Creating pay equity policies in a multi-generational workplace where employees have different views can be challenging. However, pay audits, data analysis, and thoughtful communication can help you navigate this complex landscape. If you need a hand with these initiatives, Miss Nyawira Giks is here to help. Our team recognizes that pay equity helps multiple generations feel valued and respected, creating a workplace synergy that inspires them to perform their best. To learn more about our services, reach out to us.

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We’re talking about generative AI (GenAI) — the most commonly known version of which is ChatGPT. This tech went from being an agent of opportunity among employers and employees alike to being a household name in just a few months.

Now that the GenAI movement has become a more permanent workplace fixture, we suggest getting up to speed with the trends. But before implementing any changes in your company, dig deeper into how AI can create business efficiencies and support your employees.

At Miss Nyawira Giks, our team has dealt with disruptive technologies for a long time, and we know precisely how to assist businesses along their organizational design evolution. 

What is GenAI?

GenAI is a class of artificial intelligence systems and models that uses large language models to produce content, such as text, images, audio, or other data, to mimic human creativity.

Some basic uses of GenAI for HR include document generation (such as interview forms and job descriptions), chatbots as automated virtual assistants, information parsing, and data analysis. But there’s much more it can do.

How Does GenAI Support HR?

The simple answer is by creating efficiencies. There are many small daily tasks, such as paperwork, that bog down employees, slowing productivity. 

Miss Nyawira Giks CEO Paola Accettola says AI can effectively reallocate precious human resources that may get lost in repetitive daily tasks. Companies should be curious and open to studying which GenAI tools can be beneficial and not overwhelming.

“Find your way around the AI world; don’t let it drown you.” 

For example, you can save employee time by automating daily redundancies. Study a variety of AI tools before selecting those best suited for your company’s needs.

But, Paola says, like anything else, it’s always good to have oversight in matters concerning AI.  “It can be a road full of surprises. Use it with caution.”

Adapting to an AI-focused Environment

There has been rapid uptake of AI and automation worldwide, but along with it has come resistance related to employee anxiety. This is a result of the work-system modifications over the last few years. 

Evolution is not easy—we understand. A company’s decision to incorporate AI into its systems can trigger a number of responses from employees.

From dispelling common myths to highlighting seamless ways for integration, Miss Nyawira Giks works with company leadership to prepare a human-focused plan to deal with employee concerns immediately. By tackling these concerns head-on, organizations can strengthen morale and showcase a culture of forward-thinking that is considerate of employee hesitations.

Common AI-related Worries

Automation can be a welcome addition in many workplaces, but if that automation threatens the core duties of staff, it can be just the opposite. As GenAI, like ChatGPT, has demonstrated its capabilities, worries run rampant. Some of the most common include:

• Job insecurity: One of the most common employee concerns is that AI is out to get their jobs. This concern is especially prevalent in industries where automation can easily replicate repetitive tasks. 
• Uncertainty: No matter how much AI pervades our systems, we may not fully understand how it impacts our lives. The fear of the unknown can distress employees about the future of their careers.
• Control and autonomy: When machines take over certain tasks, employees may feel a loss of control over their work routine. This is especially true if employees feel excluded from the decision-making process when automation is introduced.
• Cultural shift: Introducing AI into the company can trigger a substantial cultural shift, disconnecting employees from company values or ethos.
• Ethical concerns: There are always ethical and privacy concerns that go with using AI systems, as they don’t have the breadth of understanding or morals that roles exclusively done by people do.

AI Adoption Strategies

Technology advancements can be inundating and can overwhelm decision-makers.  

“Spinning out of control doesn’t get anybody anywhere,” Paola says.

Miss Nyawira Giks assists company leadership in getting ahead of employee discomfort by identifying potential risks and challenges associated with AI implementation and creating mitigation plans. Walking on that pathway, Paola and her team work proactively to address concerns about job displacement and other negative impacts.

Until Miss Nyawira Giks is integrated within your organization, here are some steps your business can take to create a supportive, considerate environment for your employees:

1. Create oversight: Establish an ethics committee to oversee AI projects, assess their ethical implications, and provide recommendations. Involve employees in AI strategy discussions and decision-making processes to make them feel more invested and less anxious. Encourage diverse perspectives and inclusion in AI development and deployment.
2. Reassuring employees: Once employees know that AI tools are being used to complement their work, not replace them, they will be less likely to reject the idea of AI at work.
3. Open communication: Companies can address AI-related fears through transparent communication between management and employees. Educational programs about the AI technology being used and its capabilities and limitations can foster trust in the company’s AI initiatives and goals.
4. Legal compliance: Ensure the company adheres to all relevant AI-related laws and regulations to mitigate legal risks. Here’s what you should know if you’re using AI to monitor employee progress.
5. Data privacy and security: Companies need to emphasize the importance of data privacy and security to allay concerns about data misuse.
6. Employee Support: Offer emotional support, counselling, or access to resources for employees experiencing AI-related anxiety or stress. Create channels for employees to provide feedback on AI systems and their impact on work and well-being.

How Miss Nyawira Giks Can Help

We take a personalized approach to HR. After all, it’s people who help your organization function, innovate, and achieve goals, not AI. But AI can make these processes easier and more efficient and may even support your initiatives by helping you get to the finish line faster. If you’re looking to roll out a work plan that incorporates AI into your human-focused company, we’d love to lend a hand. Get in touch with us today.

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One of the key components of the Pay Equity Act is the requirement for organizations to conduct a pay equity analysis every five years, provided they employ more than ten individuals. In this comprehensive guide, we’ll shed light on the importance of pay equity analysis in Canada and provide you with a structured approach to conducting it successfully.

What is a Pay Equity Analysis?

Pay equity analysis refers to the process of assessing and rectifying pay disparities within an organization, ensuring employees are compensated fairly for comparable work. In Canada, this isn’t merely a best practice—it is a legal requirement aimed at eliminating wage discrimination.

To achieve pay equity within your organization, it is imperative to conduct a pay equity analysis. This process will give you the data needed to understand where gaps may exist and provide insights into clear opportunities to remedy them. 

Why Conduct a Pay Equity Analysis?

While legal adherence is a primary motivator for Canadian companies to perform pay equity analyses, the benefits of this process transcend legal compliance:

• Promoting workplace fairness and employee satisfaction. Increasingly, staff are concerned with the overall accountability of their companies and the guiding principles of their decision-making. In a fair workplace, employees can feel confident in their organization and satisfied with their work.
• Improved diversity and inclusion. Pay equity analyses can move beyond the numbers to consider the varied roles in your organization and who holds them. To level the playing field, you can leverage your analysis to understand how to make more opportunities for underrepresented groups with DE&I initiatives.
• Enhanced organizational reputation. Companies that uphold high standards of ethical and moral considerations as they relate to fairness, such as pay equity, can bolster their reputation. In the search for top talent, you can set your business above the rest.

Addressing pay gaps and ensuring fairness in compensation is a legal obligation and a moral imperative. Conducting a pay equity analysis helps organizations identify and rectify discrepancies, fostering an equitable and inclusive work environment.

The Pay Equity Landscape in Canada

As previously outlined, pay equity in Canada is protected under federal law. This law mandates that business owners periodically update a pay equity plan related to their operations and staff. 

When employers assess their compensation practices, the review process should encompass the following steps:

• Job Evaluation: Evaluate various job roles and positions within the organization to identify the workforce’s distinct job classes.
• Gender Classification: Determine whether each job class is predominantly male, predominantly female, or gender-neutral. Also, assess the value of each job class in relation to the company’s operations.
• Compensation Analysis: Calculate the compensation for each job class and compare it to similar classes that perform work of equal value.

When the Pay Equity Act was enacted in 2021, employers were given a three-year window to establish a plan to increase the compensation for female-dominated job classes that received lower pay than their male counterparts performing similar work. Subsequently, this strategy should be revisited and revised every five years to ensure ongoing pay equity and the reduction of gender wage disparities.

This law primarily addresses fundamental concerns but doesn’t specifically tackle other pay disparities, such as gender pay equality. While there has been some progress in reducing the gender pay gap in recent years, its continued existence underscores the need for further legal and organizational efforts.

Conducting a Pay Equity Analysis: A Step-by-Step Approach

Step 1: Planning for a Successful Pay Equity Analysis

Successful pay equity analysis begins with thorough planning and early preparation. This stage is critical for setting the foundation for a fair and effective review.

1. Define the scope and objectives of the analysis: Clearly detail what you aim to achieve with this pay equity analysis, such as identifying and rectifying gaps. 
2. Identify key stakeholders: Determine who within the organization needs to be involved, including HR professionals, legal experts, and senior management, to ensure all aspects are covered.
3. Establish a timeline: Construct a practical and achievable timeline for the analysis, ensuring each phase is allotted sufficient time for thorough execution.
4. Allocate resources: Allocate essential resources, including budget, staff, and technology, to facilitate the smooth progression of the analysis.

Engaging in open communication to garner support and commitment is especially important during the planning phase. Part of this involves securing buy-in from key stakeholders, including senior leadership, which is crucial for the success of the pay equity analysis. 

Step 2: Researching Pay Policies and Regulations

Before conducting the analysis, it’s vital to have a comprehensive grasp of both internal pay policies within the organization and external regulations related to pay equity, especially in the context of federal and provincial laws.

1. Review Applicable Laws: Start by verifying which laws apply to your organization. For example, the Pay Equity Act only pertains to companies with ten or more employees, as does Ontario legislation on this topic. 
2. Examine Labor Contracts: Delve into labour contracts to gain insights into existing compensation structures, if any. Uncertainties regarding legal prerequisites should be clarified by seeking legal counsel or consulting HR experts specializing in Canadian pay equity issues.

It is worth noting that existing pay policies, such as merit-based pay or seniority systems, can impact the analysis outcomes. Do the work beforehand to understand these policies and interpret the data accurately.

Step 3: Gathering Relevant Data

Collecting the correct data as it relates to pay equity is critical. Overlooking even one key point could cause inaccurate results. Consider key data points, such as:

• Employee demographic information (e.g., gender, age)
• Job titles
• Compensation data
• Years of service
• Relevant performance metrics.

Next, detail the methods and sources for gathering data, which may involve HR records, payroll data, and performance evaluations. As you do this, strictly adhere to data privacy regulations. Ensure all data is anonymized and employees’ personal information is protected.

Step 4: Comparing Job Positions and Work

Comparable work can look different depending on the industry and sector. Many workplaces consider skills, effort, responsibility, and overall working conditions. Benchmarking these factors is pivotal to establishing fair job comparisons. Develop a clear methodology for categorizing jobs based on objective criteria, ensuring that the comparisons are valid and unbiased.

There can be numerous complexities involved in job comparisons, including evolving roles and changing skill requirements. As you perform a pay equity analysis, do what you can to address these challenges. Outside of this process, attempt to review and update job classifications regularly.

Step 5: Analyzing the Data

Statistical methods used in your pay equity analysis will differ depending on the data intake and details at your disposal. Considering the calibre of information, it is advisable to invest in reliable software and tools designed for pay equity analysis to ensure precision and reduce human error in calculations. 

Regression analysis, t-tests, and multivariate analysis are commonly employed in pay equity analysis to identify pay differences and potential biases in compensation. Here’s a brief description of each of these methods:

Regression Analysis

• Purpose: To examine the relationship between one or more independent variables (such as gender, job category, and experience) and a dependent variable (e.g., salary).
• Application: Helpful in determining if a statistically significant association exists between a protected characteristic (like gender) and compensation after controlling for other relevant factors. It can also quantify the extent of pay disparities while considering various variables influencing pay.

Multivariate Analysis

• Purpose: To examine multiple independent variables simultaneously to understand their collective impact on a dependent variable.
• Application: Beneficial when multiple factors could influence pay disparities, such as gender, job category, education, and years of experience. Techniques like multiple regression or logistic regression can be used to assess how these factors interact and jointly contribute to pay differences. It allows for a more comprehensive understanding of the factors influencing compensation and potential biases.

T-Tests

• Purpose: To compare the means of two groups to determine if they are statistically different.
• Application: Useful for comparing the mean salaries of different groups, such as men and women, to assess whether a statistically significant difference exists between their average pay.

In a pay equity analysis, these statistical methods are applied to the dataset containing information on employee characteristics and compensation. The results of these analyses can help organizations identify patterns, trends, and potential biases in their compensation practices.

Step 6: Assessing Legal Justification

Canadian pay equity laws generally require that employees in predominantly female job classes receive equal pay for work of equal value when compared to primarily male job classes. Pay differences based solely on gender are not permissible.

However, pay disparities may be legally justified if they are based on factors other than gender, provided these factors meet specific criteria. It is important to clearly document and explain any pay differences based on such details.

Common factors that can legally justify pay differences include:

• Job-Related Skills and Responsibilities: Employers must demonstrate that the differences in pay are directly linked to the job requirements.
• Seniority: Seniority-based pay systems are generally allowed. If seniority is used as a basis for pay differences, it must be objective and not discriminate against any particular group.
• Merit: Performance-based pay differences are permissible when they are based on an objective assessment of individual performance.
• Experience and Qualifications: Differences in pay may be justified based on an employee’s experience, education, or qualifications, provided these factors are relevant to the job.

To assess whether pay differences comply with Canadian pay equity laws and to ensure compliance, consider different analytical methods listed in Step 5.

Step 7: Taking Action to Address Pay Differences

Interpreting the data that results from your pay equity analysis means gaining a perspective on the pay differences in your organization. Whether they are minor or glaring, there are a few ways to mitigate existing gaps and promote pay equity. Here are some best practices to potentially implement: 

• Implement clear and transparent compensation policies that outline how pay is determined. Ensure that these policies are accessible to all employees.
• Foster a workplace culture that prioritizes fairness and equity. Encourage open dialogue about compensation and provide channels for employees to voice concerns without fear of retaliation.
• Commit to fair compensation practices, including ongoing review of pay structures to identify and correct biases. Regularly update job classifications and salary ranges to reflect market rates and changing job responsibilities.
• Implement diversity and inclusion programs that promote diversity at all levels of the organization. Ensure that these initiatives address pay disparities and offer opportunities for underrepresented groups.

By implementing these practices, organizations can actively promote pay equity across essential touchpoints. The more precise the communication surrounding pay and your organization’s commitment to addressing issues head-on, the greater the relationship your company will have with new and existing employees.

In Summary

While pay equity in Canada is federally legislated, actively following a process to create a plan to address pay gaps in your organization has far-reaching implications. As the trend of transparency in compensation becomes a mainstay, employees want to know what their companies are doing to protect their rights and maintain compliance with relevant laws. 

Although we’ve outlined the steps to conduct a successful pay equity analysis, tackling this process without external support can be daunting. At Miss Nyawira Giks, we encourage all the businesses we work with to prioritize pay equity compliance to achieve fairness and can help you put policies in place. Reach out to us today to see how we can work together to close pay gaps and promote transparency within your organization.

Frequently Asked Questions about Pay Equity Analysis

How do we do a gender pay equity analysis?

1. Data Collection: Gather relevant data on employee demographics (including gender), job titles, and compensation. Ensure data privacy and confidentiality.
2. Job Grouping: Categorize jobs based on objective criteria like skills, responsibilities, and qualifications to identify job classes for comparison.
3. Statistical Analysis: Use statistical methods such as regression analysis or t-tests to assess gender-based pay disparities. Analyze if, on average, male and female employees in comparable job classes receive equitable compensation.
4. Factor in Legal Justifications: Consider factors like job-related skills, seniority, merit, qualifications, and experience as potential justifications for pay differences.
5. Identify Unexplained Gaps: Any pay differences that legitimate factors cannot justify should be considered potential gender-based pay disparities.
6. Take Corrective Action: Rectify unexplainable disparities, including adjusting salaries, revising compensation policies, or addressing systemic issues.

How often should you conduct a pay equity analysis?

In Canada, the frequency of pay equity analysis should be every five years from the initial assessment to comply with federal laws. 

1. Initial Analysis: When pay equity laws first apply to your organization, typically within a specified timeframe after reaching a specific employee count (more than ten staff).
2. Subsequent Reviews: Conduct follow-up pay equity reviews periodically (e.g., every three to five years) or more frequently as significant organizational changes occur.
3. Continuous Monitoring: Regularly monitor pay practices to address any potential disparities promptly.

Who needs a pay equity plan in Canada?

In Canada, organizations subject to federal or provincial/territorial pay equity legislation are typically required to develop and maintain a pay equity plan. The specific criteria and thresholds for coverage may vary by jurisdiction, but generally include:

• Size of Organization: Organizations with a minimum number of employees often trigger pay equity obligations (e.g., a certain headcount threshold).
• Sector and Jurisdiction: The application of pay equity laws may vary depending on the industry or jurisdiction in which the organization operates.
• Type of Organization: Public and private sector and federally regulated employers may have different requirements and thresholds.

It’s crucial to consult the relevant federal, provincial, or territorial legislation and seek legal advice to determine if your organization falls under pay equity obligations and if a pay equity plan is required.

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Perhaps you’ve heard this term tossed around, but it’s essential to understand the foundation of pay equity and how it impacts your organization. In this post, we’ll define the term, explore the laws in place to protect it, and introduce ways you can implement pay equity in your workplace. Let’s get started: 

What Pay Equity Is Not About

Pay equity emphasizes compensating employees for work of equal or substantially similar value. Value might be seen as an abstract term, but it represents effort and overall job responsibilities. If two roles are similar in these aspects, they should be remunerated similarly. For instance, let’s consider a project manager and an outreach coordinator. At first glance, these roles may seem distinct. but still, if both are accountable for driving processes forward and ensuring individual team members fulfill their responsibilities, their pay should reflect these similar demands.

It’s also important to note that pay equity doesn’t consider exterior aspects and is not pay equality. Pay equity does not account for:

• Job performance
• Current compensation trends
• Internal equity linked to company policies

Equal Pay for Equal Work

The terms “equal pay for equal work” and “pay equity” are sometimes used interchangeably; however, pay equity is not about equal pay for equal work. This concept is often fuelled by gender bias and implies that female or male-dominated roles can earn a similar salary but are not comparable. For example:

1. Teachers tend to be predominantly female roles, while lawyers are predominantly male.
2. Equal pay for equal work suggests that teachers can make the same pay as each other, but that is not relatable to the work done by a lawyer, who may make more money. However, both roles require leveraging their knowledge with others to improve the lives of students and clients.
3. Since many jobs typically held by women make less than men, it is crucial to distinguish between equal pay for work of equal value compared to simply “equal work.”

Equal pay for equal work is essential, especially if there is a discrepancy between compensation for a male and female in the same role with the same skills and effort. However, this is an employment standards issue, more so than a pay equity one.

Why is Pay Equity Important?

As a team member, you want to feel valued for the work you do. After all, it took time to gain experience for the role and fulfill all of your job responsibilities. But, without pay equity, there’s nothing to say your employer couldn’t pay you less than someone else based on bias or factors outside of your control. Pay equity is important because it acts as a way to protect employees while also ensuring fairness. The laws in place ensure this practice further communicates its importance, reinforcing the need for legislation that accounts for various employee circumstances.

One significant driver for these laws has been the gender pay gap. Throughout the last two centuries, numerous rallies, protests, and petitions have surrounded the concern for unfair labour practices in various workplaces and the impact of the pay gap on women specifically. These strides helped move the needle and pay equity laws ensure these efforts are recognized. 

Key Differences Between the Federal Pay Equity Act and Section 11 of the Canadian Human Rights Act

As mentioned, there are laws in place to protect pay equity and ensure businesses comply with this practice. From a federal perspective, the Pay Equity Act and Section 11 of the Canadian Human Rights Act directly speak to the fundamental concept of pay equity. However, they do have the same stringencies. 

• The Federal Pay Equity Act is a proactive measure aimed at employers. It requires businesses to review how to better attune with pay equity and improve employee opportunities. This involves creating and updating a pay equity plan every five years to close new gaps and maintain pay equity compliance.
• The right of pay equity is protected by Section 11 of the Canadian Human Rights Act and focuses more on labour laws. It specifically states that employers cannot discriminate against employees based on their gender as it relates to their pay if they are doing equal work of equal value. 

Pay Equity Laws in Canada

The Pay Equity Act is a federal law that extends throughout Canada, but in some provinces, there is further legislation to maintain or strengthen the concept of equal pay for work of equal value.

• Ontario’s Pay Equity Act: This act requires public sector employers, as well as private sector employers with ten or more employees, to establish and maintain pay equity in the workplace.
• Quebec’s Pay Equity Act: Quebec’s law applies to employers in the public and private sectors with ten or more employees. It aims to ensure pay equity for predominantly female job classes.
• Manitoba’s Pay Equity Act: This act applies to public-sector employers and private-sector employers with ten or more employees. It requires the development and implementation of pay equity plans.
• British Columbia’s Pay Equity Act: Enacted in 2018, this law applies to the public sector and certain public sector employers. It requires employers to achieve and maintain pay equity within their workplaces.
• Nova Scotia’s Pay Equity Act: This act applies to public-sector employers and private-sector employers with ten or more employees. It aims to ensure that employees receive equal pay for work of equal or comparable value.
• New Brunswick’s Pay Equity Act: Enacted in 2009, this law applies to public-sector employers and private-sector employers with ten or more employees. It requires the development and implementation of pay equity plans.
• Prince Edward Island’s Employment Standards Act: While not exclusively a pay equity law, the act includes provisions that address gender-based wage discrimination.
• The Saskatchewan Employment Act: While not specifically a pay equity law, this act contains provisions related to equal pay for work of equal value.

Overview of the Pay Equity Act

In December 2018, the federal government enacted the Pay Equity Act, and in August 2021, it came into effect. This legislation mandates compliance for all federally regulated workplaces with ten or more employees, casting a wide net into various industries and sectors throughout Canada. Let’s explore this form of law:

Understanding the Purpose and Scope of the Pay Equity Act

The purpose of the Pay Equity Act is simple: to ensure workplaces examine their compensation practices and verify that men and women doing equal work of equal value are paid the same amount. This scope involves all federally regulated workplaces in the public and private sectors, including parliamentary workplaces, with ten or more employees.

Key Components of a Pay Equity Plan

When examining their compensation practices, employers should put together a pay equity plan to address any disparity that would be cause for concern regarding pay equity. This review should include:

1. Evaluating various jobs based on workplace positions and roles to identify the different job classes that make up their workplace.
2. Determining whether the class is male or female-dominated, or gender neutral, and its value as it relates to the company.
3. Calculating the compensation of each job class and comparing it to similar classes that do work of equal value.

When the Pay Equity Act came into force, employers had three years to establish a plan that addressed increasing the compensation of any female-dominated job class that received less than male equivalents. From here, the strategy should be revisited and updated every five years to ensure pay equity and close gender wage gaps.

Role of the Pay Equity Commissioner

To ensure the Act is upheld correctly and consistently, the pay equity commissioner is responsible for verifying compliance. But this is not their only role. They are also designated to support employers who need general guidance or are looking to establish pay equity plans.  

Despite the clear communication of this law as it relates to businesses, there are potentially times when employers and employees may have a discourse over pay equity. In these cases, the pay equity commissioner must work to resolve the dispute.

Pay Equity Implementation

Whether you are focused on staying ahead of the curve or remaining compliant in an ever-evolving business environment, there are a few considerations regarding what you can do to implement pay equity. 

Addressing Pay Equity Issues

Addressing pay equity issues involves identifying and rectifying wage disparities within your organization based on factors like gender, race, or other protected attributes. This process ensures that employees receive equal compensation for work of equal or comparable value. 

How Employers Can Implement or Improve Pay Equity Policies

Employers can implement or enhance pay equity policies through various steps:

1. Evaluate job roles based on skills, effort, and responsibility to determine their relative worth within the organization.
2. Analyze compensation data to identify pay gaps between different job categories.
3. Create plans to address identified disparities, including salary adjustments and job reclassifications.
4. Communicate pay equity policies to employees, highlighting the commitment to fair compensation.
5. Train HR personnel, managers, and employees about pay equity principles and the importance of unbiased compensation.
6. Regularly review pay data to ensure that pay equity is maintained over time.

If you’re struggling with the above steps or unsure where to start, Miss Nyawira Giks HR offers pay equity compliance consulting to get your organization on the right track.

Understanding Pay Equity Analysis

A pay equity analysis is a systematic examination of job roles to determine their relative value and identify any compensation disparities. At Miss Nyawira Giks, our analysis considers factors such as job content, skill, effort, and responsibility. We aim to ensure that employees are compensated fairly, regardless of gender or other characteristics. This process may involve a few moving parts, like quantitative assessments, data analysis, and collaboration between your team and ours. Our professionals are keen to understand your concerns, distill the data of our findings and communicate how to implement changes that will make all the difference.

Best Practices for Ensuring Fair Pay

To ensure fair pay within an organization, we recommend considering these best practices:

• Transparency: Maintain transparent communication about pay scales, job evaluation processes, and compensation criteria.
• Regular Audits: Conduct periodic pay audits to identify and address potential pay gaps or disparities.
• Unbiased Hiring and Promotions: Base hiring and promotions on skills, qualifications, and experience, avoiding bias.
• Training and Awareness: Educate employees and managers about pay equity principles and the impact of unconscious bias.
• Equal Opportunity: Ensure equal access to career development opportunities, training, and mentorship programs.
• Supportive Culture: Foster a workplace culture that values diversity, equity, and inclusion, encouraging open discussions about compensation concerns.

These practices contribute to building a more equitable and inclusive workplace where employees are compensated fairly based on the value of their contributions and responsibilities.

In Summary

Pay equity ensures that individuals doing work of equal value are compensated accordingly. It breaks down barriers associated with systemic bias and discrimination to create an environment where people are remunerated for their experience and skill set. The laws in place to protect this concept further communicate its importance. To be compliant, businesses must have a pay equity plan in place that addresses any potential pay bias in their compensation structure. But this isn’t always easy. At Miss Nyawira Giks, we recognize that and are here to lend a hand.

Our team specializes in the analysis of pay equity. We can provide sound, strategic advice on improving your pay equity plan and remaining compliant with provincial and federal laws. To learn more about our services, reach out to us. 

Frequently Asked Questions about Pay Equity

What factors contribute to pay equity?

Pay equity ensures that individuals receive equal pay for work of equal or comparable value. Several factors contribute to pay equity, including the following:

• Job Content: The tasks, responsibilities, and qualifications required for a job play a crucial role in determining its value.
• Skill, Effort, and Responsibility: The skill, effort, and responsibility required for a job are considered when assessing its value.
• Working Conditions: Factors such as physical and mental demands, hazards, and working environment are considered.
• Education and Training: The education and training needed for a job impact its value.
• Experience: Employees’ relevant experience can influence their job’s value.

Achieving pay equity involves assessing these factors across different job categories to ensure that compensation aligns with the value of the work performed, regardless of gender or other protected characteristics.

What is the Equal Pay Act?

The Equal Pay Act is a United States labour law aimed at removing the wage gap based on gender. In addition, the term “Equal Pay Act” is often used to refer to legislation aimed at ensuring equal pay for equal work or work of equal value. However, the specific name and content of the act can vary depending on the jurisdiction. In Canada, the federal government has the Pay Equity Act, which seeks to address pay inequities in the federal public sector and federally regulated industries. At the provincial level, various provinces have their pay equity legislation with similar goals. These laws typically require employers to assess job classes, identify pay disparities based on gender or other protected characteristics, and take measures to correct those disparities.

How is pay equity calculated?

Pay equity calculations involve a systematic process to evaluate the value of different jobs within an organization. Here’s a general outline of the process:

• Jobs are evaluated based on factors such as skill, effort, responsibility, and working conditions. This process assigns points or values to different aspects of each job.
• Compensation data is analyzed to identify pay disparities between job categories. If jobs of comparable value are paid differently, adjustments may be needed.
• Based on the analysis, organizations develop pay equity plans that outline how pay disparities will be corrected. These plans may involve salary adjustments, job reclassification, or other measures.
• Organizations implement the pay equity plan and continue to monitor and assess pay equity over time to ensure ongoing fairness.

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An HR audit delves deep into your existing policies and procedures, offering insights into how they impact your company and employees. While some companies incorporate HR audits into their regular routines, others might only consider them after substantial organizational changes. At Miss Nyawira Giks, we understand the value of revamping HR practices thoughtfully, and we’re here to guide you through the entire process.

Preparing for an HR Audit

Once you’ve established the need for an HR audit, there are a few factors to consider regarding the scope and extent of this analysis:

• Determine the type of audit needed: Before you start, determine what aspects of HR you want to audit. This can range from operational efficiency, risk management to compliance measures. This decision will shape the subsequent stages and requirements of the audit.
• Set a date and understand the timeline: It’s essential to select a time when an audit can be conducted with minimal disruption to your daily operations. Plan ahead and ensure you clearly understand the timeline for completion.
• Obtain buy-in from executives: An HR audit can only be effective if it has no barriers to the process. Buy-in from executives means the audit can uncover all necessary information, and once compiled and reported, implementations can be made for overall improvements.
• Select a reputable and informed consultant: Working with experienced HR audit professionals is crucial to obtaining accurate insights and meaningful benchmarks. At Miss Nyawira Giks, we collaborate with you on delivering detailed reports and providing support to help you achieve your goals based on the audit data.
• Organize your team: Depending on the type of audit, involving your HR team or other departments may be necessary. Prepare and inform all relevant teams in advance, ensuring they’re equipped and available for the audit process.

The HR Audit Process

The type of audit and whether you conduct it with your internal team or a consultancy will impact the overall process. For example, additional steps may be required to ensure the approach is well-rounded. However, there are generally five stages to the HR audit process:

1. Planning: Establish a comprehensive plan for the audit, including the areas to be covered, the methods of data collection, and the timeline for each phase. Leverage various tools to organize information best and ensure a thorough process is possible.
2. Data collection: Gather relevant documentation, records, and information about your HR practices. This may involve interviews, surveys, or analyzing existing data. Dive into all the details as much as possible, giving you an accurate perspective.
3. Analysis: Carefully review the collected data to identify strengths, weaknesses, and areas for improvement. Look for patterns, trends, and any gaps that need attention. The more you understand the information you’ve uncovered, the better for the next steps in the process.
4. Benchmarking: Take the details you’ve gathered and set a benchmark against industry standards. Seeing how your organization stacks up against the norm can be a helpful way to understand where you are and what you need to improve. 
5. Reporting: Summarize your findings in a concise report, weaving in actionable recommendations to elevate your HR functions. A reputable consultancy like Miss Nyawira Giks can provide accurate insights and ways to guide your next steps effectively, including process changes and updated policies. 

If you need a hand, Miss Nyawira Giks specializes in several areas of HR expertise. Our team focuses on actionable changes that create meaningful impacts to drive HR success.

The Different Types of HR Audits

Different types of audits can be conducted regarding your HR practices. Some prove essential to safeguard against labour concerns or hefty fines, such as compliance audits, while others, like strategic audits, ensure overall alignment with HR procedures and company goals. Here are the types to consider:

Compliance Audits

Compliance audits ensure that an organization’s HR practices and policies align with applicable laws, regulations, and industry standards. These audits evaluate whether the organization complies with legal requirements related to employment, compensation, health and safety, equal opportunity, and other relevant areas. Compliance audits help identify potential legal risks and promote the organization in maintaining a fair and ethical work environment.

Risk Management Audits

Risk management audits involve assessing and mitigating potential risks associated with human resources functions. These audits aim to identify areas of vulnerability or exposure to risks such as employee misconduct, data breaches, non-compliance, workplace accidents, or employee dissatisfaction. Organizations can develop strategies to minimize risks and protect the company’s reputation, assets, and employees by evaluating risk management practices.

Operational Audits

Operational audits evaluate the efficiency and effectiveness of HR processes and procedures. These audits assess various HR functions, including recruitment and selection, performance management, training and development, compensation and benefits, employee relations, and HR administration. Operational audits help identify areas for improvement, streamline processes, enhance productivity, and ensure alignment with organizational goals and objectives.

Strategic Audits

Strategic audits in HR involve assessing the alignment between HR practices and the organization’s overall strategic goals. These audits evaluate whether HR initiatives, programs, and policies support the organization’s long-term objectives and contribute to its competitive advantage. Strategic audits consider workforce planning, talent acquisition and retention, succession planning, leadership development, and organizational culture. They help ensure that HR functions are integrated into the organization’s strategic planning and contribute to its success.

Data and Analytics Audits

As data-driven decision-making becomes indispensable in HR, data and analytics audits focus on evaluating the quality, accuracy, and security of HR data and the effectiveness of HR analytics processes. These audits assess the integrity of HR databases, data privacy compliance, data management practices, and the use of analytics to drive insights and decision-making in HR. Data and analytics audits help organizations optimize their data-driven HR strategies and ensure that HR decisions are based on reliable and relevant information.

Key Focus Areas in HR Audits

No matter the type of HR audit your company undergoes, more than one area will always be covered. This scope ensures that related entities are considered individually and connected to the bigger picture. For example, a compliance audit might look at pay equality and thus involve the review of compensation and benefits. Below, we’ve compiled the most common areas reviewed during an HR audit:

1. Compliance with employment laws and regulations: Assessing whether your organization adheres to applicable labour laws and regulations is vital to avoid legal complications.
2. Hiring and recruitment processes: Reviewing your hiring procedures helps identify potential gaps or biases, allowing you to optimize recruitment efforts and ensure fairness.
3. Employee onboarding and training: Evaluate how well your onboarding and training programs prepare new employees for success and support their ongoing development.
4. Performance management and evaluation: Assessing your performance management systems and processes ensures that employees are effectively evaluated and supported in achieving their goals.
5. Employee relations and communication: Reviewing communication channels, feedback loops, and conflict resolution strategies help foster a positive work environment and strong employee relationships.
6. Compensation and benefits: Analyzing your compensation and benefits practices ensures fairness, competitiveness, and compliance with relevant laws and regulations.

Conducting an Effective HR Audit

Whether you are working with an HR consultant or conducting the audit internally, there are some general best practices to consider.

1. Be comprehensive: Ensure you cover all relevant areas and aspects of your HR practices. Leave no stone unturned to identify any potential issues or areas for improvement.
2. Involve key stakeholders: Engage employees, HR professionals, and management at different audit stages to understand your organization’s HR landscape comprehensively.
3. Leverage external insights: Working with experienced HR consultants provides an objective perspective and access to specialized knowledge and best practices.
4. Communicate transparently: Keep your employees informed about the purpose and process of the audit, emphasizing the benefits it can bring to the organization and its workforce. 
5. Address identified issues promptly: Once problems or concerns are identified during the audit, develop strategies to address them effectively and efficiently. Seek expert guidance if needed.

Common Mistakes to Avoid

While conducting an HR audit, oversight or flaws in the process can lead to inaccurate results or misaligned implementations. Be mindful of these common mistakes to avoid unnecessary difficulties:

• Focusing only on compliance: While compliance is crucial, pay attention to other aspects, such as employee engagement and talent development, that contribute to the overall success of your HR practices.
• Neglecting to involve key stakeholders: Collaboration and input from various departments and employees are essential to capture a holistic view of your organization’s HR landscape.
• Failing to act on audit findings: An HR audit is only valuable if the identified issues can be addressed and improvements are implemented. Develop action plans based on the audit results and ensure follow-through.

Benefits of HR Audits

Conducting regular HR audits offers numerous benefits to your organization. While this process is not necessary on an annual basis, it can allow you the foresight to make sound decisions and support the overarching needs of employees and, thus, the company:

1. By identifying and rectifying compliance gaps, you reduce the risk of legal liability and financial penalties, thus having improved compliance with laws and regulations.
2. The insights gained from an HR audit enable you to streamline processes, eliminate redundancies, and improve overall operational efficiency.
3. Understanding and addressing HR challenges creates a more supportive work environment, fostering employee satisfaction and reducing turnover.

What Technology is Used to Conduct HR Audits?

As we’ve uncovered what is involved in an HR audit, it’s clear this process can have many moving pieces. As a result, it is essential to leverage technology to assist in various areas and contribute to more concrete findings. Some technologies that can support the HR audit process include, but are not limited to:

• HR Information Systems (HRIS): These platforms provide a centralized database for HR-related data, making collecting and analyzing information during the audit easier.
• Employee survey tools: Online survey platforms allow you to gather employee feedback and insights, providing valuable data for evaluating employee satisfaction and engagement.
• Data analytics tools: Advanced analytics tools help analyze HR data, identify patterns, and generate insights for evidence-based decision-making.

How Has COVID-19 Impacted HR Audits?

The pandemic has significantly impacted organizations, HR departments, and thus HR audits. Several vital considerations emerged that were less significant before COVID-19 and have proven crucial as the work landscape continues to evolve.

Remote Work and Digital Transformation

The shift to remote work has highlighted the need for updated HR policies and procedures, focusing on remote work guidelines, cybersecurity, and employee well-being.

Health and Safety Protocols

Audits have become crucial for assessing compliance with health and safety regulations, including measures related to sanitization, workplace distancing, and employee protection.

Mental Health Support

HR audits now emphasize the importance of evaluating and strengthening mental health support programs for employees facing increased stress and uncertainty.

In Summary

Human resources help align your business goals with employee needs and drive overall organizational success. As you grow and look to seize new opportunities, an HR audit can be an essential discovery process and catalyst for positive change that ensures objectives are met and goals are attainable.

Whether this post has sparked your interest in HR audits or provided insight into what you can include in your next one, our team is always available to help with any questions. Curious about our HR audit process and what it can bring to the table for your organization? Reach out to us.

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