Pay Equity: Internal and External Considerations Essay
Pay Equity: Internal and External Considerations
Associate Hay Group, Inc.
Labor Economist Pacific Telesis
Vice-President, Hay Group, Inc.
EqUity (or fairness), a central theme in compensation theory and practice, arises in many different contexts. Here, for example, are some major areas: • The legal and economic issue of equal pay for similar work (comparable worth). • Pay differences caused by external competition or market pressures. • The fairness of individual wage rates for people who are doing the same job. • Individual employee views of their …show more content…
• Perform dissimilar jobs. • Work within the same department. • Work in different departments. Externally, equity can be expressed in terms of employees who have these relation ships to one another: • In the same industry. • In different industries. • In the same union. • In the same profession. • In the same geographic location. • In different geographic locations. • In organizations of similar size. • In organizations of differing sizes. Specifically, equity