A Shopping mart has about 300 employees, 200 of whom are on the permanent
rolls, whereas the rest are outsourced. About 50 percent of the employees were
females. Since it was a new entrant in the business, the retail chain has adopted
the ongoing practice of job evaluation rather than framing its own job evaluation
and classification system. As a result, the chain failed to establish a mutually
agreed compensation design plan and was accused of deliberate pay inequity,
without valuing diversity issues. This institutional failure to establish pay equity
ultimately led to successive strikes by dissatisfied employees. Eventually these
employees formed unions with strong opposing political affiliations.
The company then formed a task force with cross-functional team managers to
educate employees on the methods of job correlation and job pricing. The idea
behind the force to receive the support of employees a mutually accepted job
evaluation scheme and rationalize the company’s pay differentiation strategies.Although this scheme might have reduced the employees dissatisfaction on pay
parity, it failed to eliminate inequity, resulting in dimension amidst a small section
of employees.
In a retail store, customers notice dissatisfied employees immediately, especially
when their queries go unheard, when they were left to guess the price of an item
whose price tag is missing, or when they are not properly informed about product
features. The business of a retail chain suffers when it fails to captive customers.
The shopping mart faced all these predicaments, resulting in a substantial loss of
business and significant reduction in customers.
Facing the successive business losses, the company ultimately decided to discuss
the pay parity issue and to arrive at a solution. It also agreed to develop a suitable
job evaluation scheme, aligned with the compensation design plan. All the unions
agreed to this proposition of the company and promised to come out with a win- win solution on the pay parity issue. Some of the issues suggested by unions for
discussion in the joint-meeting were-correctly capture some key features of the
work done by female employees, differentiate between the quality of customer
relations offered by a male and female employee, understand the success rate (in
terms of percentage of customers) of male and female employees complained that
though the success rate was better than their male colleagues they were paid less
than their male counterparts. They threatened to refer the matter to the Human
Rights Commission, if conciliation failed.
Question:
As a team member, representing the management, suggest a way for the company
to achieve pay parity through mutual consensus.
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Answer:
not so nice it is so large
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