Question

As the HR manager, you have access to sensitive data, such as pay information. As you are looking at pay for each employee in the marketing department, you notice that two employee with the same job title and performing the same job are earning different amounts of money. As you dig deeper, you notice the employee who has been with the company for the least amount of time is actually getting paid more than the person with longer tenure. A brief look at the performance evaluations shows they are both star performers. You determine that two different managers hired the employees, and one manager is longer with the organization. How would you handle this?

Answer 1

As an HR manager in this situation, I would handle this as follows:

Conduct a thorough review of company policies and procedures regarding pay equity, including guidelines for determining pay based on job title, performance, and length of service.

Meet with the managers involved to discuss the discrepancy in pay between the two employees. Seek their explanation and perspective on the situation and clarify any misunderstandings.

Review the performance evaluations and job descriptions of the two employees to ensure they are accurately reflective of the work they perform.

Conduct a market analysis to determine if the pay discrepancy is in line with industry standards for similar positions.

Based on the information gathered, determine if the pay discrepancy is justified or if there is a need for correction. If correction is needed, have a clear and transparent conversation with the affected employees about the rationale for the correction.

Document the steps taken to address the pay discrepancy, including any changes made to pay, and communicate the findings to the relevant stakeholders.

It's important to address pay equity concerns in a timely and fair manner, as unequal pay can impact employee morale, engagement, and motivation. By following a thorough and objective process, I aim to ensure that all employees are treated fairly and that company policies and procedures are upheld.