Business Management

, 2005; Noe, Hollenbeck, Gerhart, et al., 2009).

Human Resources Implications of Equal Pay Concepts

While applicable employment legislation prohibits discrimination in compensation based strictly on gender, it does not necessarily require equal pay in circumstances where there are purely objective differences justifying those differences (Noe, Hollenbeck, Gerhart, et al., 2009). There are, in fact, numerous factors on the basis of which compensation differences may be permissible; for example, seniority, performance reviews, experience, the achievement of specific goals or objectives, and the objective overall quality of the work performed by respective employees may all be appropriate criteria for justifying unequal pay (Noe, Hollenbeck, Gerhart, et al., 2009).

In light of the applicable legislation and the nature of the appropriate criteria that justify differential compensation, promotion, and benefits, human resource professionals must establish very detailed position analyses and job descriptions (Noe, Hollenbeck, Gerhart, et al., 2009).

This is the simplest and most effective way of preventing claims for discrimination based on differences in pay and compensation because it provides the opportunity to establish very detailed criteria and parameters corresponding to every position on the basis of which legitimate (i.e. legal and non-discriminatory) decisions to award unequal pay may be made. Generally, these descriptions should always include elements such as the specific tasks and responsibilities associated with every position, the conditions in which those tasks and responsibilities are expected to be performed, the necessary knowledge, skills, and abilities, and the specific criteria that will be used to evaluate performance and make future decisions about advancement, benefits, and financial compensation (Noe, Hollenbeck, Gerhart, et


Goldfield, D., Abbot, C., Argersinger, J., and Argersinger, P. (2005). Twentieth-Century

America: A Social and Political History. Upper Saddle River, NJ: Pearson-

Prentice Hall.

Noe, R., Hollenbeck,.

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