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May 2003 In this issue:
Surely men and women are treated equally at work?
How job evaluation can help
Performance Development training
Racism in the workplace
Employers may still be liable
Pay is a highly emotive subject in any organisation. After all how many of us work just for the fun of it! It is therefore vital that employers are sensitive to this subject and deal with the issue of pay fairly and objectively. So, find out how you can develop a system that will keep your employees happier when it comes to money. Job Evaluation Without a relatively transparent pay grading structure a sense of unfairness and mistrust can arise amongst employees of the company, especially when they might believe that a colleague doing the same job as them is paid more. Job evaluation can help remove any anomalies or inequities in an organisation’s payment system where the existing grading structure is thought to place jobs in an arbitrary order with no justifiable or logical reason. Introduction of the equal pay questionnaire has provided employers another reason to seriously review their current system of grading jobs and pay. The questionnaire gives employees the right to request pay information on a comparable workers of the opposite sex. Employers are not compelled to use them but those that refuse requests from employees are likely to be penalised if taken to employment tribunal. Under Section 7B of the Equal Pay Act 1970 a person is entitled to write to his or her employer asking for information that will help establish whether he or she has received equal pay and, if not, what the reasons are. The purpose of the Equal Pay Act is to eliminate discrimination between women and men in the same employment with respect to pay and other terms and conditions of their contracts of employment such as piecework, output and bonus payments, holidays and sick leave. What is job evaluation and what is the legal position? Job evaluation simply means a way of describing, comparing and hence grading jobs. It is intended to be clear, open and transparent. It is not a science: judgements remain subjective, but job evaluation is intended to provide a rational framework of requirements and criteria to use in making these judgements. In theory, the presence of a good job evaluation scheme ought to rule out the possibility of discrimination. To be binding, a job evaluation scheme must be valid, in the sense that it must be non-discriminatory, objective and capable of impartial application. It must be capable of objectively demonstrating that the pay structure it underpins provides equal pay for work of equal value and allow employees to know the criteria by which their pay is determined, and how these criteria are applied to them. The burden of proof is on the employer to show that the existing job evaluation scheme is untainted by sex discrimination. Signs that may suggest you need a job evaluation scheme- Anomalies in the pay system or the need for a pay structure, where existing grading structure is thought to place jobs in an arbitrary order with no justifiable or logical reason.
- Grading grievances - Frequent grievances or disputes over grading or pay may indicate that the existing grading structure is no longer appropriate. If unresolved, such dissatisfaction could result in consequential pay claims, increased costs in terms of high turnover of staff and deteriorating morale and employee relations.
- Technological and organisational change - It is important to ensure that the grading system is appropriate to the needs of an organisation particularly following technological and organisational change. Changes arising from new technology may affect jobs in the following ways:
- mental effort may replace physical effort as an important factor for improving output
- employees may be required to do a number of activities previously carried out by others
- innovative and creative skills may be required which hitherto were not within the culture of the organisation
- The introduction of flexibility, multi-skilling, team working and new operational methods also have important consequences for job design and the way jobs are organised, and will clearly affect traditional work groupings and pay structures.
- Job evaluation schemes can be used as a leverage to encourage the skills and behaviours the organisation needs now and in the future.
- Discrimination - The Equal Pay Act and the Equal Pay (Amendment) Regulations make it especially important to maintain a fair and orderly grading structure. Job evaluation may be helpful as a means of ensuring that a grading structure is fair and equitable.
Obtaining advice Before undertaking job evaluation and devising an appropriate grading structure, organisations should bear in mind how equal pay legislation and equal value case law impacts on job evaluation. The case of Bromley and Others v H J Quick is of particular significance. In this case the Court of Appeal ruled that a job evaluation scheme must be analytical if it is to succeed as a defence to an equal value claim. Care is needed to ensure that there is no discrimination, direct or implied, in the design and operation of the scheme. In view of the legal complexities and uncertainties, organisations should seek advice from job evaluation experts before introducing or reviewing a job evaluation scheme. At Picasso HR we have the expertise and experience to advise, design, implement and support job evaluation schemes. Call us for a no obligation meeting on 01473 890037
Performance Management for Results 1/2 day workshop for £50 Effective management of it’s people has to be critical to the success of an organisation. When people are well managed they feel committed, on board, motivated and productive. At work we all need to know how we’re doing and we would rather know of our mistakes sooner rather than later when perhaps too much damage is done. We know most managers don’t particularly like confrontation, but if something isn’t working well, the earlier it is addressed the sooner it can be righted. This workshop will teach you the techniques for dealing with difficult performance issues and about the tools that can be used. Coaching for Excellence 1.5 days for £75 Good managers get things done through people. Excellent managers inspire excellent performance in their people. An essential skill in getting your team from an okay performance to excellent performance is coaching. This programme will enable you to get the best from your team by increasing their motivation and abilities. You will learn about your own coaching style and how to use it effectively, and the processes and skills that you will apply to coach your team to excellent performance.
Racism is unhealthy and unproductive but it persists in our workplace. Failure by employers to deal with any racism could cause the employer to face a charge as well as an employee.Despite various legislation and the steady increase in the attempt to educate employers and employees over the last decade, racism still exists and many black and ethnic minority workers are still being treated unfairly, according to the report "Black voices at work", published by the TUC. The report claims an equal opportunities policy in many organisations is often just words on paper and in reality carries little weight or conviction. The report calls on the Government to extend race relations laws to require all employers to positively promote race equality. Employers should take race discrimination more seriously, says the report. They should give responsibility for equal opportunities policies to their most senior managers, who must treat racial discrimination, including the expressing of racist views, as a serious disciplinary offence. Employers will be liable for the discriminatory acts of employees where those employees are acting in the course of their employment. This is known as vicarious liability. Employers have a defence to a complaint of discrimination based on vicarious liability if they can prove that they took all reasonably practicable steps to prevent the discrimination. It is rare for employers to be able to succeed with this defence. Even if they do, the claim can continue against the individual employee. Brendan Barber, TUC general secretary-elect, said: "Anti-racist laws and campaigning have brought real benefits to large numbers of workers. Now the Government must legislate to force all employers to rid our workplaces of racism".
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