Many lack 'fully developed compensation philosophy'
Many organizations in British Columbia needed to enhance their compensation practices, according to a survey commissioned by the Chartered Professionals in Human Resources BC & Yukon which was undertaken by Western Compensation & Benefits Consultants (WCBC).
“A significant proportion of organizations either lack a fully developed compensation philosophy or have not documented it comprehensively, which could lead to inconsistencies and questions about fairness and transparency,” said Linda Reid, partner at WCBC.
According to the survey findings, half of the respondents did not have a formalized compensation philosophy while 40% said that they conducted a pay equity analysis.
More then two-thirds of the respondents also said that they had undertaken initiatives for diversity, equity, and inclusion (DE&I), which have led to education and training for managers and employees, implementing policies to ensure the organization attracts various candidates, as well as amending human resources policies and plans.
“With increasing requirements to address pay transparency, organizations can expect more employee inquiries regarding compensation levels and how they are determined. Having a well thought out, defensible compensation philosophy can go a long way to build trust and understanding of your workforce,” said Reid.
“The findings from the survey are particularly significant in light of the BC government’s introduction of the BC Pay Transparency Act to address wage disparities and promote equity in the workplace,” said Anthony Ariganello, FCPHR, CEO, CPHR BC & Yukon.
“While the Act has clear advantages in terms of reducing discrimination and enhancing accountability, organizations across the province that have yet to take steps on this issue, need to get a handle on it fairly quickly if they want to avoid administrative burdens, as well as the potential of unintended consequences by not adhering to the Act,” he said further.
The survey was conducted from September and November 2023, involving data from 205 organizations and information for 36 human resources positions.