ORC Sightlines

November 2003

European Employers Face Equal Pay Issues

The European Commission has identified the gap between men’s and women’s earnings as a serious obstacle to equal treatment and has initiated an action plan to combat the problem. In a recent survey of companies that belong to ORC’s equal opportunities networks in the UK, ORC found that 65% had conducted equal pay audits. Of those, 91% found pay inequities. In response, companies have undertaken measures such as

At last month’s meeting of the Vanguard Network, members discussed the barriers and challenges facing employers in this area. Neil Coleman, ORC’s Vice President of Global Compensation, pointed to five factors that often perpetuate the gender gap: using inappropriate methods to analyze pay, management’s reluctance to probe deeply, basing starting salary on a candidate’s past salary history, biased promotional decision-making processes, and overly subjective performance assessments.

Self-audits can be valuable tools for uncovering these historical issues and surfacing potential liabilities. Coleman advised companies undertaking such studies to make sure they are designed in a way that will produce credible data. Beware of small samples where there are too few of one gender to yield meaningful data, and don’t rely solely on average data. Look behind the averages to understand the effect outliers or unusually wide dispersion of data might be having. Make sure your calculations compare apples to apples—e.g., people doing the same jobs, data drawn from the same time period, etc.

The audit is not an easy process, however. Members remarked on the complexity of the data (e.g., shift patterns and premiums, regional and functional differences, experience, length of service). Coleman also warned that care should be taken when using external market data as a benchmark, since the market reflects patterns of historical discrimination.

Lingering Liability

Also of concern to European employers is a decision by the European Court of Justice that unfavorable actions taken against a former employee after he or she has left the company (e.g., refusing to give a reference) could still violate the principle of equal treatment. In a recent case the House of Lords applied this reasoning to UK employment law, determining that certain aspects of the employment relationship such as confidentiality agreements, pension rights, provision of references, and disciplinary/grievance appeals procedures, can survive the termination of the employment contract and are subject to equality requirements. Employers should make sure they have procedures in place to prevent unlawful discrimination in these circumstances and should

For more information regarding equal opportunities issues in Europe or ORC’s UK and European EO networks, contact Deirdre Golden in London, +44-207-591-5600 or deirdre.golden@orcww.com. To discuss pay audits, contact Neil Coleman at 1-212-719-3400 or neil.coleman@orcww.com.

Stress—The New Cocaine?

What do stress and cocaine have in common? They’re both addictive, they both release adrenaline in the body, which causes microinfarcts (small areas of dead cells in the heart), and they can both be lethal. In fact, studies show that stress costs US employers $300 billion in healthcare costs and absenteeism alone, not to mention burnout, poor performance, increased turnover, accidents, long- and short-term disability, and so forth. Top stressors include

Some of these issues can be addressed systemically by managers, at least to a degree. In addition, however, research has shown that stress reduction programs that teach individuals how to mitigate stress through meditation, exercise, nutrition, and other techniques can be very effective.

In one case discussed at the latest meeting of ORC’s Western OSH group, for example, the company delivered a stress-reduction course for the staff of a call center. Before and after measures showed that employees’ feelings of stress decreased after the course, their job satisfaction improved, and they believed they were more productive and had better communications with management and coworkers.

To learn more about the Western OSH group, contact Judith Freyman in Sacramento, 1-916-447-3102 or judi.freyman@orcww.com.

Companies Go “Silver Mining”

Knowledge-rich organizations are coming up against the harsh reality of the baby boom age—a large proportion of their experienced work force are close to retirement and a wealth of intellectual capital threatens to walk out the door with them. Several of the member companies in ORC’s Human Resources in R&D (HRRD) network have been experimenting with various strategies for maintaining access to that talent pool. Some have developed programs that permit retirees to come back to work after retirement, either as “on call” temporaries or in long-term, part-time arrangements. At this month’s meeting, one company described a new plan for facilitating the transfer of knowledge between generations. Under this pilot program, employees within two years of retirement sign up to recruit and mentor a new employee who will be the recipient and guardian of at least some of the retiree’s wisdom.

Although it is too soon to evaluate the program, on paper the calculus looks promising: the retiree gets incentives in pay and benefits to participate plus the assurance that his or her contributions to the organization will continue, the new employee gets an experienced mentor right away, and the company conserves some of its most valuable assets.

For more information on the Human Resources in R&D Network, contact Michal Fineman, 212-719-3400, michal.fineman@orcww.com.

Contractor Safety Programs

Making sure contractors working on your site are working safely can be a major headache. Several organizations described their systematic approaches to this problem for their colleagues in the Western OSH network. Each of their programs begins with setting standards and including safety criteria in the contractor selection process, continues with ongoing monitoring of the project, and leads to final reviews and consequences. Some of the best practices seen in various companies include

To learn more about the Western OSH group, contact Judith Freyman in Sacramento, 916-447-3102 or judi.freyman@orcww.com.

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