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Gender Pay Reviews

A template for examination of

gender pay in organisations

Funded by the Equality Mainstreaming Unit which is jointly funded by the European Social

Fund 2007-2013 and by the Equality Authority”

Investing in your future

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Contents

1. Introduction 3

2. Template purpose and features 4

3. Template headings 5

4. Review tasks and checklists 6

5. Appendices 18

1. Competency profiles and performance management ratings

2. Sample pay analysis

3. Job and person profiles

4. Sample job and person profile

5. Job evaluation methodologies

6. Resources

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1. Introduction

This Review template for examination of gender pay equity in organisations is a result of

IBEC‟s project activity under the Equality Authority‟s Equality Mainstreaming Unit. Under

this project, IBEC undertook to pursue the research, development and piloting of a gender

pay review template. The purpose of the template is to assist organisations to carry out an

equal pay review with the main focus being on gender equality while maintaining a

perspective on other relevant equality criteria.

The provisions of the Employment Equality Acts 1998 to 2011 specifically prohibit the

discrimination of individuals on the basis of pay and provide for equal pay for like work. Yet

a substantial gender pay gap still remains both in Ireland and across Europe.

The gender pay gap area has long been a concern in Ireland and in the EU. Research

undertaken by the ESRI and Equality Authority (2009) resulted in the publishing of a report

entitled “The Gender Wage Gap in Ireland – Evidence from the National Employment

Survey 2003”. This report found that differences in the degree of the pay gap, taking into

account the sector involved, ranged from 13.3% in the hotel sector to 45.8% in education

(raw gender wage gap), 2.7% in the transport sector to 20.1% in the construction sector.

We know that the issue of pay gaps is a complex one, which is often thwarted by multiple

and interrelated causes. The elimination of pay gaps remains a major challenge.

While surveys (eg. Equality and Human Rights Commission 2008, 2009) indicate that

organisations generally understand the business case for action in this area, further action

tends to be slow. This may be due to lack of awareness of legislative requirements, fear of

finding out that the organisation may not be compliant and its potential consequences, or a

lack of know-how as to how to approach the issue.

For many people, this may seem a complicated subject and there is a need to simplify the

approach as far as practical, while still addressing the core issue. In order to help address the

barriers, IBEC, supported by the Equality Authority, have developed a gender review

template to support organisations to evaluate where they stand. This template is designed to

assist employers in carrying out an objective review process and is aimed at proofing the

organisation against possible future gender pay inequity. It addresses;

the review scope and the data required;

the collection and comparison of gender pay data;

recruitment and performance management processes that are key to pay equity;

drawing up conclusions.

The template focuses on reviewing gender pay in order to provide clear directions, but its

structure is applicable to other equality grounds. The template will assist in identifying

justifiable reasons for current pay differences, such as those related to length of service or

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differences in job values, and review a number of HR processes to safeguard against practices

that could contribute to gender pay variation.

The questions posed in the template are designed as prompts and are formatted as such

rather than as a questionnaire to be administered and analysed. This approach has been

adopted so as to make the template less cumbersome for an enterprise to complete.

The template, as designed, is applicable to small, medium and larger organisations, regardless

of the HR support available to complete the review. It is envisaged that the template can be

completed by an individual or a team. The accessibility and functionality of the tool makes it

a valuable resource to any entity undertaking a pay review.

The template offers a step by step review process, designed to clearly guide and assist the

individual conducting the review to satisfactorily complete the process. There is significant

background information provided around the sections under review. This information and

general context piece is aimed at making the process and procedure as easy as possible for a

HR professional to successfully complete.

Carrying out a gender pay review will help to positively promote workplace equality. It will

assist employers in adopting a planned and systematic approach to identifying and

addressing, transparently and constructively, areas of possible risk that may be hidden in

decision-making, organisational processes and structures.

2. Template purpose and features

The purpose of this template is to assist organisations to carry out an equal pay review with

the main focus being on gender equality, while maintaining a perspective on other relevant

equality criteria.

The template sets out to be a comprehensive yet straightforward mechanism to use across a

variety of workplace settings. It begins with the collection of raw data that is generally widely

available within organisations before moving to the next level where data may need to be

assembled.

Most importantly, it is a template that is applicable to both small businesses and larger

organisations. The template has been designed with a range of organisations in mind and as

such, is a valuable resource to all organisations conducting a pay review.

Under each area for which data has been assembled, an explanation of the issues is provided

and the prompt questions that the organisation needs to answer for a reliable review are

stated. This is followed up, where necessary, with examples and further explanations in the

appendices.

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The data, when analysed can be used as part of further research to directly address issues

arising whether these are at a policy level or in day-to-day processes.

It is necessary to consider who will be involved in the review. Some companies allocate an

individual or a small group. It is fair to say that the more representative the participation the

better, but what is more important is that people conducting the review are suitably trained

and knowledgeable in equality and assessment techniques.

3. Template Headings

The template headings are as follows:

Scope of the review: the job categories that are going to be involved, what is

realistic and what needs to be done to ensure reliability of findings.

Raw data collection: the data to be collated for each employee in scope, namely:

gender, hours of work, length of service, age, job category and title, pay rates/bands,

benefits and bonus elements, sick pay and top-ups, pension and other benefits, annual

leave and special leave if applicable, last pay increase, including percentage increase,

mechanism used and when it was paid.

Analysing raw data: preliminary visual reviews, spot checking for differences and

identifying possible follow up strands and causal factors.

Establishing pay rates: methods employed internally and externally.

Recruitment: categories, breakdown by gender, how pay was set, whether

negotiation was involved.

Performance management: consequences for pay, use of rating scales, actual results

in terms of ratings achieved across gender and effect of rating system on pay

increases/bonuses and promotion.

Promotion profiles: job categories in which promotions were given, profile of

applications and appointments, actual promotions by gender, impact of promotions on

pay and benefits.

Conclusions: drawing conclusions and focussing on gender pay proofing

Review: what has been learnt from the process?

Special note: data protection

It may be necessary to consider data protection issues involved in conducting an equal pay

review. For example, where you are considering compiling data where a category has just one

or two individuals, there may be implications to be taken on board in certain circumstances.

Being aware of your legal obligations when processing personal data will ensure that no

unintentional infringement of the Data Protection Acts takes place. This template does not

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detail these issues and guidance should be taken from the organisation‟s data protection

policy and more information can be obtained from www.ibec.ie and www.dataprotection.ie.

4. Review tasks and checklists

In this section we detail the activities and checklists for the completion of a gender pay

review.

Task 1 - Scope of the review

For practical reasons, few organisations are able to carry out an equality pay review of all

employees at the one time and across all grounds and therefore it is advisable to carry it out in

stages based on job categories that are clearly defined within the organisation. It is also

necessary to take account of the accessibility of the information available.

For example you may choose software developers, line managers, operators, sales or

administrative support roles or another well-defined category in your organisation. As can be

seen from task four below– establishing pay rates – there is a considerable amount of data to

be collected and analysed in order to carry out a thorough exercise. Therefore a staged

approach, beginning with a review of men‟s and women‟s pay and benefits in a specific job

category is advisable. Importantly, as many pay claims arise in situations where there are

categories of work that are similar or involve work of equal value, yet there categories differ

in pay. Thus, category selection must address potential overlaps of roles and responsibilities.

However, it is recommended that an overall plan to complete a full review is laid down at the

beginning and that the various stages are capable of being integrated together so as to give a

full picture in the end. This will also lay down the blueprint for future reviews that should be

carried out on a two to three year cycle depending on changes in the business.

The staged approach also facilitates developing expertise in the review process before

extending the scope in subsequent reviews. However, it important that a consistent approach

is taken so that at the end of the complete process, all the categories can be reviewed in

totality. It is also vital that the review includes all your employees who are in the 'same

employment' for the purposes of the equal pay provisions of the Employment Equality Acts

1998 - 2011.

Some matters to bear in mind in choosing a defined job category include:

the number of people in the category;

capacity to differentiate the job skills required in the role (not personal skills);

capacity to differentiate the level of skills required (eg. qualification, experience);

breadth of job responsibilities and competencies (eg management roles, technical

competencies - see appendices for further guidance).

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Checklist 1 - Defining the scope 1. Have you selected the category/ies of employment?

2. Have you defined the review scope and category/ies of employment?

3. Have you ensured that the categories are complete i.e. within defined and

recognised boundaries?

4. Please state the job categories and period in scope for this review:

Task 2 - Raw data collection and validation

Having decided in principle what categories you will review, then the next step is to begin

collecting the relevant information.

The review requires a range of information about every employee in scope and his or her pay

and benefits. At this initial stage in the review, you need to plan how you will bring the

information together and how it will be analysed.

This necessitates listing employees, their gender, length of service, date of birth, job category

and title, pay rates/bands, hours of work, benefits and bonus elements, pension and other

benefits, annual leave and special leave if applicable, access to sick pay and top up payments

when necessary, amount of last pay increase, mechanism used and when the increase was

paid. It is important to include all elements in collecting the data including items which may

not be obvious such as allowances, once-off bonuses, special awards etc.

Before decisions about the final scope of your review can be finalised, you will need to

establish what information you hold and how accurate and accessible it is.

If you have a combined human resource and payroll system, the information you need should

be mostly there. In some organisations, the information required will have to be drawn from

more than one source including the payroll system and the human resource system. Making

sure the information is consistent from all the sources is vital.

This process will require establishing:

whether the individuals are paid monthly/weekly/hourly and then equating the various

rates to one measure such as monthly/weekly pay or annual salary;

the benefits available to the job category in general and the value of the benefits to

each individual in the period;

any premium or bonus payments involved, the circumstances in which they are

payable and the amount earned in the period;

any profile characteristics across the job category, eg service level or the proportion

on starter rates;

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any top-up or acting up rates have been applied to individuals or any period of

protective leave;

that the data covers a sufficient period (eg. 12 months minimum) to give a reliable

representation;

Whether all payments and allowances are included in the data.

Checklist 2 - Data collection 1. Have you identified the sources of information and is the data readily accessible?

2. Have you planned a structure and framework for compiling and reviewing the

data?

3. Have you compiled an up to-date list of all employees in the category, their

profiles, job title and their status?

4. Have you a full list of the current pay and benefits paid to each individual?

5. Have you full details of any premium, bonus payments and allowances for each

individual?

6. Are you confident about data reliability and accuracy?

7. Is the period for which the data has been collected consistent for all employees, is

it typical or atypical, have unique bonus elements been included etc.?

8. Does the data need cleansing in the sense that payments may or not have been

included for some reason such as incomplete records, late payments, recent

changes?

9. Have you checked the consistency of your information where you have different

sources (e.g. same period, complete for every employee)?

Task 3 - Assembling and preliminary analysis of raw data

Once you have assembled all the data, the first step is to carry out a simple visual check of

the data in its raw state. This may highlight items that seem unusual or unexpected and will

provide some preliminary questions that you can note for further investigation or may reveal

data that needs double checking to ensure accuracy.

Most organisations use a spread sheet; others may have access to a more sophisticated

database system (see appendix 2 for a sample spread sheet). The system you use must allow

you to carry out a basic analysis.

Checklist 3 - Basic analysis questions 1. Are the basic annual/monthly/weekly earnings the same for both genders doing

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the same category of job?

2. Is the total pay the same for men and women doing this job for the nominated

period?

3. Do men and women doing this job get the same benefits?

4. Is the value of benefits the same for men and women for the nominated period?

5. Is the value of any variable or bonus pay the same for men and women for the

nominated period?

The above preliminary analysis will identify differences that need closer examination.

Variances may be a result of justifiable reasons for pay differences (length of service,

working hours, key role differences, functional areas, etc.), errors in the data (oversight in

terms of pay element inclusion etc.) or possible gender inequalities. It is not necessary to

reach any final conclusions at this stage but to create awareness of issues that need further

examination.

For the moment, taking an overview is best, as this avoids going down unnecessary cul-de-

sacs and wasting valuable time. Scatter grams and lines of best fit can be helpful in visually

presenting the data. Later, if even small but significant differences exist, further analysis and

statistical tools can be used to provide further clarity. These tools are readily available and

involve establishing modes, means and standard deviations to determine the significance in

statistical terms of the actual deviations and whether they are at such a level as to warrant

action.

In any event, this preliminary analysis is a crucial signpost for pointing to the direction of the

next stages of the review.

Checklist 4 - Reviewing any differences identified

1. Are there errors/variation in the data due to the period covered, eg. is it

unrepresentative?

2. Does the data point to unexplainable differences in terms of gender pay?

3. Can the differences be quantified?

4. Do the differences point to specific issues, characteristics that should be

considered?

5. Are there any variations which may be connected with:

length of service

division or department

reporting line

size of team

start date

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normal working hours

protective leave

flexible working

6. List the preliminary issues to be considered at this stage:

7. Are the differences in terms of gender pay attributable to any evidence of

atypical working practices, eg, Part- time working patterns?

Task 4 – Establishing pay rates

Where the preliminary analysis of pay data is comprehensive and shows consistency across

both genders, then it may not be necessary to review your policies, procedures and processes

in any great detail. If, however, differences appear that require further scrutiny, we need to

look at the some of the potential causal issues. In addition, we must be alert to roles which

slot into a particular grade should be potentially treated as being „similar roles‟ for quality of

work purposes. Roles may be allocated to a band or grade based on the band definition, with

the position of the role in the band determined through internal and external relativities.

Sometimes a major and fundamental reason for pay differences is how pay is actually set and

this is a primary area to be reviewed.

Setting pay rates - internal process

First we will look at the internal process for how pay is set and this is generally based on

what employees do.

Taking the list of employees who are doing the same jobs, it is necessary to look at how their

pay rates were established. It is important to look beyond job titles and to think carefully

about what people actually do, i.e. the job profile. If their duties and job values are close, then

their pay will need to be compared.

To decide whether different jobs in your business may be equal in value, you will need to

weigh up the demands of those jobs by considering aspects like the skills, knowledge,

responsibilities and the sorts of issues the job holders deal with as laid out in their job profile

(see Appendix 3 for recruitment and Appendix 4 for a sample job and person profile).

Some individuals may do jobs that no one else does. For example, there may be only one

head of finance, chef, website developer or receptionist. There is also a need to check that

people with different job titles are not, in fact, doing the same job in practice, for example:

website developer and IT systems support, chef and cook, administrator and executive

support.

The tools to help do this systematically are job profiles and job evaluation systems and

methodologies (see Appendix 5 for further information). Such objective systems of

evaluation are based on criteria that determine the relative value of the jobs.

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It is important that the job profiles used for job evaluation are consistently produced and

uniform in structure and factors covered. Ideally, they should be as explicit as possible in

terms of the factors so it can be seen clearly what level each element of the job has in relation

to each factor.

There are a number of job evaluation system approaches as outlined in appendix 5. Points

based systems are the most popular and tend to be less biased than other systems. However,

the factors used and how they are weighted are critical to ensure bias is not inherently built

into a system. For example, lifting is less associated with female jobs than male jobs and if

heavily weighted, could possibly create a bias.

When the various factors under which the different jobs are evaluated are fairly equivalent

when they are weighed together, then the jobs are likely to be of equal value. It is important

that the person(s) who assesses the relative job values is trained in job profiling and

evaluation and is sufficiently objective not to bring their personal biases to the exercise.

Checklist 5 - Internal benchmarking

1. How are pay rates determined internally?

2. Are job profiles prepared for all roles and are they consistent across the job

families?

3. What factors are included in the evaluation/categorisation of jobs?

4. Are the factors comprehensive and a proper reflection of the job families?

5. How the factors are weighted and if so, is there potential for bias?

6. Are the job profiles reviewed regularly and maintained up to-date?

7. Who carries out the evaluation of jobs and are they trained and objective?

External Benchmarking

The second area is to consider in setting pay rates is the use of external benchmarking.

Most pay rates are set formally or informally by some relativity with the external

environment and sector rates. Very few organisations are totally immune from what is

happening in the external market place.

The weakness in this approach is that because gender bias may already exist in certain

sectors, there is a danger that external benchmarking may inadvertently perpetuate gender

discrimination.

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Also, there is an inherent difficulty in comparing profiles across organisations and sectors.

For benchmarking purposes, job profiles need to be equivalent and compatible to those in the

benchmarking exercise. At times this may be difficult to achieve but issues such as the

influence of company size, sector and position within the organisation structure should at

least be understood. Ensuring a sufficiently comprehensive exercise and being aware of

potential bias are key considerations in external benchmarking.

Checklist 6 - External benchmarking

1. To what extent do you use external benchmarking (formal or informal) as means

of pay setting?

2. Are job profiles in place and what steps are taken to check that these profiles are

comparable with external benchmark profiles?

3. What criteria are used to select the sources of benchmarking data?

4. How many benchmark organisations are used and are they sufficient in number

to give reliable indications (rule of thumb is five comparators)?

5. Are the same external benchmarks used for all individuals in the job category?

6. Are the same relativities used for all individuals in the job category?

7. Are all employees considered in the benchmarking exercise (not just recent

appointments or those seeking to negotiate a rise).

8. Have you checked whether there are inherent biases in pay in the sector (for

example ESRI and Equality Authority Report (2009): “The Gender Wage Gap

in Ireland – Evidence from the National Employment Survey 2003”. )?

Task 5 - Recruitment

Recruitment is an important process in any company. Having a process that has a high

probability of selecting the right candidate and reducing the risk of gender bias is important.

Defining the job in terms of competences required for success and avoidance of stereotyping

is a critical first step. Definitions of competencies and a sample competency framework are

included in appendix 1, but each company will have their own framework.

Ensuring that the job is advertised widely and screening perspective candidates based on pre-

set objective criteria help to ensure the validity and equity of the recruitment process. Gender

-balanced interview panels and assessment processes are also critical.

As part of the pay review, it is necessary to extract data on employees recruited over an

agreed period (eg. the past two/three years by gender, job category and the level and the

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rate/pay bands applied). This analysis is not restricted to the job category/ies reviewed in

earlier steps.

Checklist 7 - Recruitment

1. What roles were filled with external candidates in the past three years?

2. What positions were widely advertised internally or externally?

3. Were competency profiles developed for each position to be filled?

4. What was the gender breakdown of applicants for vacancies over the past two

years?

5. What was the gender breakdown of successful applicants?

6. Was remuneration pre-set or was there room was for negotiation? Where

negotiation was allowed, on what basis e.g. experience, expertise or some other

criteria?

7. Were candidates screened based on objective, gender unbiased criteria?

8. Are the interviews and assessment processes objective and gender balanced?

9. Were there any differences between entry points on pay scales between males

and females?

10. Were there any differences in benefits received by males and females (in terms of

access to benefits and value of benefits)?

11. Does the data on recent recruitment indicate gender differences in pay and/or

benefits?

Task 6 – Assignments and promotions

Promotions are seen as a key element in gender pay gaps. Many elements drive promotions,

from attracting candidates to the pre-set objective criteria. Each organisation will have its

own culture and beliefs in this regard. They may also have practices such as access to

training, flexible working and family friendly policies that will either inhibit or support

gender neutral promotion.

Apart from open promotion competitions, appointments (temporary or permanent) and

project assignments can be made which influence both current and future earnings potential.

These must be reviewed to see whether a gender bias influence who gets access to such

opportunities. Again, this analysis is not restricted to the job categories covered in earlier

stages of the review.

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Checklist 8 - Appointments / project assignments

1. To what positions/projects were appointments made without advertisement or

competition in the last three years?

2. Specifically, what new roles (excluding those in the Recruitment section above)

emerged in the past two years?

3. Do competency profiles exist for each such new position?

4. What was the gender breakdown of employees considered for

appointments/project assignments over the past two years?

5. What was the gender breakdown of successful appointments?

6. What was the effect of such appointments on pay and benefits for the

individuals?

7. Were there any differences between pay/salary awarded to males and females?

8. Were there any differences in benefits awarded to males and females?

9. Does the data indicate gender differences in the way appointments/assignments

were made or in the pay and benefits given to appointees?

Checklist 9 - Promotions

1. In what job categories did promotion take place in the last two years?

2. What was the gender breakdown of applicants for promotional positions in the

past two years?

3. How were the promotions advertised and processed?

4. What criteria are used for promotions? Are they pre-set and objective?

5. Are there any requirements which could introduce gender bias such as

relocation, hours of working, culture, team profile etc.?

6. Are flexibility and family friendly policies similar at all levels in the

organisation?

7. What is the uptake in flexible working in the grades to which promotions have

been made?

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8. Is there equal access to training and development? Review the number of

training days of males and females by grade in the last 12 months.

9. What proportion of those promoted took protective leave in the last three years?

10. Of these, what proportion of those who took protective leave were unsuccessful

in their promotion attempts?

11. What formula/process is used to award increases in pay and benefits on

promotion?

12. What has been the frequency of negotiation of pay on promotion and the gender

breakdown?

13. What have been pay/salary consequences of promotion and what if any

differences emerged between the genders?

Task 7 – Performance Management

Performance management is of increasing importance in determining employee pay and

promotion (see appendix 5 for approaches to ratings in performance management).

Approaches can vary from recognising performance based solely on output against Key

Performance Indicators (e.g. sales per month) to more broadly based systems which offer a

“balanced scorecard” approach that incorporates a wider range of factors such as behavioural

indicators and competency development. Awards are commonly based on individual and

company performance.

Possible areas of discrimination in performance management may arise from ratings bias,

unclear guidelines and lack of training of assessors. One useful measure of consistency of

application is the rating deviations between genders. Varying access to pay increases or

bonuses in different job roles and functional areas can also introduce bias.

Checklist 10 - Performance related pay 1. Taking the performance reviews over the past two years, document the

distribution of ratings/scores between males and females across job categories.

2. Are the scores/ratings achieved consistent across the genders?

3. Is access to performance reviews equal across the organisation and for both

genders?

4. What effect did performance management outputs have on pay and promotion

in the last two years?

5. What rules/guidelines are used to determine the distribution of the pay/bonus

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pool for males and females?

6. Is there a calibration mechanism in place to review ratings/awards?

a. Is there scope for the calibration mechanism to favour certain

functions/roles/individuals?

7. Is there equal access to bonus/salary increases by males and female?

8. Is performance linked to quantifiable targets only or does it consider a wider

range of factors?

9. What analysis of proposed performance related pay takes place prior to

finalisation?

a. Is gender one of the factors considered?

10. Is training in diversity and the avoidance of bias given to all involved in assessing

performance and awarding pay?

Task 8 – Conclusions

Equal pay can be a very sensitive issue and also can have significant implications for the

individual and the organisation.

It important therefore that the analysis carried is thorough, reliable and that any conclusions

are arrived at in a clear and objective manner. Opinions should be kept to a minimum and the

facts should „speak for themselves‟. The focus needs to be on gender proofing for the future

and revising any processes that could lead to bias.

There can be many reasons for differences in pay and no assumption should be made without

objective evidence. Reasons aside from those that are gender based oftentimes become

apparent on conducting a review. This template has the capacity to capture a range of these

variables such as those of the other 9 protected grounds under the Employment Equality Acts

1998 – 2011.

If the data is for some reason unclear, then further research is recommended before reaching

any conclusion.

While it is advised to commence the activity with a review of men‟s and women‟s pay and

benefits in a specific job category, it is recommended that an overall plan to complete a full

review is laid down at the beginning and that the various stages are capable of being

integrated together so as to give a more comprehensive overview in the end.

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Checklist 11 - Your conclusions

1. Are you satisfied that the data you have collected is reliable and accurate?

2. Have you reached conclusions solidly based on the data?

3. Are there processes that need to be examined to improve gender equality pay

proofing?

4. Are their specific situations that the organisation needs to address?

5. Do you need further research to ensure reliability of conclusions?

There will be occasions when the review will identify where an individual‟s pay is out of line

and a strategy to close this pay gap will be necessary.

Task 9 – Review

In carrying out an exercise of this nature, there will be learning points for the organisation

that will emerge, both from a methodological perspective and also from the types of

discovery made.

Checklist 12 - Review

1. What worked well in collecting the data?

2. What improvements, if any, would you make to data collection?

3. What changes, if any, would you make to your information systems to make the

information more readily available?

4. What tools did you find effective in analysing the data and in carrying out the

review?

5. What aspects/processes would you concentrate on when carrying out future

reviews?

6. What training would you consider necessary for carrying out the review?

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5. Appendices

Appendix 1

Competency profiles and performance management

Competency definition and framework

Competencies are the ability to meet performance expectations in a role and deliver the

required result and refer to the applied knowledge, skills, performance delivery and the

behavior required to get things done

Examples of competencies elements (by no means exhaustive as each organization and level

will have its own competencies and therefore there are potentially hundreds) that can form

part of competency frameworks are shown below:

Knowledge

technical and functional knowledge

accounting and financial procedures

knowledge of acts and regulations

computer languages

administration and procedures

strategic approach and visioning

dealing with diversity

Skills

interpersonal relationships

computing skills

planning and organisation

analytical skills

problem solving and creativity

influencing

team working

people management

Behaviours

self-confidence

achievement drive/commitment

judgment

delivery against promises

decision making

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Methods of performance rating

1. Freeform - subjective assessment of performance by manager

2. Objectives based - against pre-set objectives set at beginning of year and usually

reviewed during the year

3. Rating – against a predetermined scale and this can be used in combination with

objectives based approach above

4. Ranking – against other workers using predetermined factors in most cases but can be

highly subjective

5. Paired comparison – against one other and repeated against all others

6. Critical incident – against significant incident(s) and how well these were dealt with

by individual

7. Assessment centre – psychometric tests etc.

8. Self-assessment – self appraisal

9. Combinations

Methods two and three above are the most frequently used methods and can be used together-

each of these need trained reviewers to carry out them out objectively. Generally speaking,

combinations provide the most reliable results but may not be practicable in all circumstances

particularly in smaller companies.

The most common number of points on a rating scale is five (IBEC, Essential guide to HR

Practices in Ireland, 2011).

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Appendix 2

Sample pay analysis

Factor Category Category2 Category3 Category4 Category5

Job (title) Production Operative

Production Operative

Clerical Operative

Production Operative Office admin.

Sex M F F M F

Date of Birth 15/05/1953 31/03/1955 10/06/1982 21/08/1984 30/07/1950

Length of service(years) 10 11.5 3 6.5 12

Normal hours of work 8-4.30 8-4.30 9-5.00 8-5.00 9-5.00

Perceived "Equal" Value

Category(wage band) A A A B B

Working out basic hourly pay

Weekly basic pay 300.00 187.50 253.00 420.00 350.00

Standard basic hours per week 37.50 25.00 35.00 40.00 35.00

Basic Hourly Pay € 8.00 7.50 7.40 10.50 10.00

Working out average total hourly

earnings

Total earnings (basic + additions) 1,339.50 774.00 1,036.00 1,700.80 1,400.00

No of weeks in time period 4.0 4.0 4.0 4.0 4.0

Standard basic hours per week 37.5 25 35 40 35

Average total hourly earnings 8.93 7.74 7.4 10.63 10

The make-up of total earnings

Additions to basic pay in time period used

Overtime earnings 100.00 none n/a 13.00 n/a

Shift pay n/a n/a n/a n/a n/a

Performance bonuses 40.00 24.00 n/a 50.00 n/a

Commission n/a n/a n/a n/a n/a

Total earnings (should be same as

row 15) 1,339.50 774.00 1,036.00 1,700.80 1,400.00

Benefits

Additional days holiday 2.0 0 5

1

Employer pension contributions(%

of basic wage) 6 No 6 5 5

Other benefits as appropriate

Sick Pay(weeks)

Top up for social welfare

Health Insurance

Lunch Vouchers

Car(benefit in Kind)

Service increments(specify)

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Other benefits

Pay increases-date and amount

Appendix 3

Recruitment

Job and person profiles

To produce a job and person profile for job, a process of job analysis is required.

Job analysis is the process of

“Collecting, analysing and setting out information about the content of jobs in order to

provide a basis for a job profile and data for recruitment, training, job evaluation and

performance management”

Job profile contains

• Job title

• Organisational factors – reporting relationships

• Purpose of job

• Nature and scope (what inputs into what outputs)

• Qualifications required

• Accountabilities/responsibilities

• Performance criteria

• Development and environmental factors

Person specification contains

• Essential qualifications - education and training

• Key competencies

• General intelligence - need reliable tests to assess

• Special aptitudes - may need tests to assess reliably

• Interests - not necessarily a good indicator and therefore should generally be avoided

• Disposition - job related behaviours-need concrete examples but difficult to assess

reliability

• Circumstances - availability for work to suit rosters required

Note

It is important that current stereotypes (“that‟s male or female work” or currently most

employees in a particular category are female or male) are not allowed to bias either the job

profile or the person specification.

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Appendix 4

Sample job and person profile

Title: Application Coordinator

Reporting to: IT Manager

Responsible for: Application Administration

Department: Information Technology

Purpose of Job:

To ensure that the MIS is maintained, up to-date and working effectively to meet the needs of

the organisation.

Nature and Scope of Job: The post carries the responsibility for general administration and

maintenance of the MIS application and as part of a team to drive the future development of

MIS in line with IT Strategy. This will involve continuous monitoring of system

performance, assessing future demands of the organisation and ensuring these demands are

met by the IT system in a timely and cost effective solution.

Qualifications required:

A degree in computer science specialising in applications or a broader degree with at least

two years experience in computers application management.

Key Accountabilities and Responsibilities

Administrative responsibilities

o Deliver agreed performance criteria as laid down in service agreement

o Quality Control (QC) on system performance where it is data related.

o Ensure that routine additions / changes and system administration are carried out

efficiently and in a timely fashion.

o Regular system review to maintain operational parameters.

o Ensuring data gathering and access is in compliance with Data Protection Act and

company policy.

Team working and facilitation

Work in conjunction with the IT Manager to:

o Review existing and any new proposed processes and identify potential improvements.

o Facilitate the integration of processes on a cross departmental basis.

o Act as the main liaison person between the end users and IT function in identifying

problems and improvements.

Leadership

o Establish a logical user group network, to include the main applications within the

company.

23

o Provide forum to capture and express the views / suggestions of end users.

o Create feedback mechanisms to the Steering Group / IT + users.

Technical Inputs

o Evaluation of enhancement requests, particularly in the potential impact on systems /

processes.

o Documentation of enhancement requests & sign off by users.

o Demonstration of enhancements / fixes to users in test environment.

o Carry out Validation testing in conjunction with Key Users & sign off before transfer

to live environment.

Co-ordination and external communication

o Maintain a training plan encompassing the requirements identified in feedback form

the User Group and Helpdesk.

o Provide regular training sessions for new / existing staff.

o Provide updating sessions to facilitate the introduction of new functionality, via

system enhancements etc.

o Support end users in their operational area as required.

Performance criteria

The performance criteria will be set down on annual basis and will be on the basis of system

reliability and user satisfaction, to be surveyed annually.

Development and environmental factors

Working environment will be largely office bound and job holder will be expected to keep

him or herself up-to-date on emerging trends in applications.

Person specification example

The role requires an understanding of applications NOT how to fix a computer

Ability to communicate effectively

Ability to problem solve effectively

Prepared to obtain an expert knowledge of the MIS application

Good understanding of the company processes

Ability to prioritise effectively

Project management experience for future implementation projects as they relate to MIS

Willing to give on-call support out of hours within reasonable boundaries.

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Appendix 5

Job evaluation methodologies

Market-based evaluation: The market-based approach to job evaluation establishes job

worth and position in a hierarchy on the basis of market value for core or benchmark jobs.

Then non-core jobs are slotted into the benchmark job structure on the basis of which

benchmark role they most relate to in terms of either market pay or job content.

Non-quantitative whole-job evaluation

This approach determines the place of each job in a hierarchy by evaluating jobs as a whole

without breaking them into factors such as knowledge, skills and impact. It can comprise of:

Job ranking: considered to be the simplest form of job evaluation, this process

involves a whole-job comparison resulting in an ordering of jobs from highest to

lowest. However, it does not reveal anything about the relative degree of distance

between jobs.

Job slotting: compares new jobs to those that have already been placed in a hierarchy.

It slots new jobs into the same grades as those with similar overall worth.

Job classification: the number of grades in the structure has already been established

and defined in language suited to the company. Each grade is assigned a set of generic

jobs that fit into that grade and grade descriptor. Other jobs are then assigned to

grades based on which description they fit best.

Quantitative factor evaluation

Quantitative or factor-based evaluation assesses the content of jobs on a factor-by-factor basis

and produces a precise numerical outcome (points or scores) for each of the evaluated jobs.

The processes typically involve identifying the generic or tailored factors, perhaps weighting

them on the basis of what is most important to the organisation, and evaluating the jobs

through assigning them points reflecting the extent to which the job requires the factors for

proficient execution of the role.

Typical factors considered are:

functional knowledge

training and experience

reporting levels and accountability

physical demands;

business knowledge

complexity and problem solving

impact on results and outcomes

scope and scale of activity and areas

managed

Such systems can be custom built or a proprietary system can be used (e.g. from

organisations such as Hay, Mercer and Watson Wyatt). The advantage of customised systems

is that they accurately reflect the factors that are important to the specific company, while the

main advantage of proprietary systems is that they are externally recognised and can be used

to compare job size and market values outside the organisation.

25

Appendix 6

Resources

Adams, L., Hall, P. Hall and Schäfer, S. (2008) Equal pay reviews survey 2008. Equality and

Human Rights Commission. Manchester: EHRC.

Adams, L., Gore, K. and Shury, J. (2010) Gender pay gap reporting 2009. Equality and Human

Rights Commission. Reporting Survey No. 55. Manchester: EHRC.

Equality and Human Rights Commission (2010) Carrying out an Equal Pay Review.

Available at: http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-

employers/tools-equal-pay/equal-pay-review-toolkit/carrying-out-an-equal-pay-review/

Equality and Human Rights Commission (2010) Checklists: equal pay in practice. Available

at: http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-employers/tools-

equal-pay/equal-pay-review-toolkit/

Equality and Human Rights Commission (2010) Equal pay review toolkit. Available at:

http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-employers/tools-

equal-pay/equal-pay-review-toolkit/

Equality and Human Rights Commission (2010) Equal pay review toolkit for small

businesses. Available at: http://www.equalityhumanrights.com/advice-and-

guidance/guidance-for-employers/tools-equal-pay/equal-pay-review-toolkit-for-small-

businesses/

Equality and Human Rights Commission (2010) Equality Impact Assessments. Available at:

http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-employers/tools-

equal-pay/equality-impact-assessments/

Equality and Human Rights Commission (2010) Performance related pay. Available at:

http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-employers/tools-

equal-pay/checklists-equal-pay-in-practice/8-performance-related-pay/

Equality and Human Rights Commission (2010) Quick-start guide to providing equal pay.

Available at: http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-

employers/tools-equal-pay/quick-start-guide-to-providing-equal-pay/

Equality and Human Rights Commission (2010) Market forces and pay. Available at:

http://www.equalityhumanrights.com/advice-and-guidance/guidance-for-employers/tools-

equal-pay/checklists-equal-pay-in-practice/9-market-forces-and-pay

Perfect, D. (2011) Gender pay gaps. Equality and Human Rights Commission. Reporting Briefing paper 2. Manchester: EHRC.

26

ESRI and Equality Authority Report (2009): “The Gender Wage Gap in Ireland – Evidence

from the National Employment Survey 2003”. Available at:

http://www.esri.ie/UserFiles/publications/20090911101000/BKMNEXT141.pdf

ICTU and Department of Justice, Equality and Law Reform (2002 – 2004). “GAP (Gender

and Pay) Final Report.

IBEC, Human Resource Management Guide (2011)– Employment Equality Section

IBEC, The Essential Guide to Reward and Recognition (2010)

IBEC and the Equality Authority (2010), Maternity and Parenting Toolkit

Funded by the Equality Mainstreaming Unit which is jointly funded by the European Social

Fund 2007-2013 and by the Equality Authority”

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