Principle 1 Employment and Compensation
Key Element A Wages, Benefits & Pay Equity

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"While paying the legal wage and benefits should be basic and mandatory, it cannot be assumed that this is the case. Multinational organizations should comply with all local and prevailing wage laws that guarantee workers are paid appropriately and on time. Moving past legal wages, a "living wage" is almost always higher than the legally mandated minimum wage, as minimum wages around the world are almost always lower than conventional "living wage." A growing number of jurisdictions in the U.S. and elsewhere require government contractors to pay "living wages." There are a number of commonly accepted concepts that an organization should take into consideration when establishing living wage provisions which have been incorporated into the indicators for this Principle. The wage gap is defined as the difference in men's and women's average earnings, usually reported as either the earnings ratio between men and women or as an actual gap in wages. It is the result of a variety of forms of sex discrimination in the workplace, intentional and unintentional. These include discrimination in hiring, promotion and pay, occupational segregation, bias against mothers, and other ways in which women workers are undervalued. The wage gap exists, in part, because many women are still segregated into lower paying jobs. More than half of all women workers hold sales, clerical, and service jobs. Pay equity evaluating and compensating jobs based on the an individual's skill, effort, responsibility, and working conditions, and not on the people who hold the jobs is a solution to eliminating wage discrimination and closing the wage gap. Comparable worth is often defined as "equal pay for work of equal value." Pay equity rests on the premise that the work being compared be "equal." The basis of comparable worth and pay equity recognizes that jobs traditionally done by women are undervalued in the marketplace."

There are 6 indicators for this element.
Indicator 1

Pay the legally mandated minimum wage and benefits for all staff including apprentices, casual workers/trainees, piece rate workers, and employees on probationary status.

Implementation level
Indicator 2

Conduct, on a regular basis, an audit of job classifications, compensation policies, and total benefits packages analysis for both bias and adverse impact on women.

Implementation level
Indicator 3

Pay a living wage that will support basic living needs (e.g., food, shelter, clothing, energy, water, transportation, healthcare, savings, recreation, and circumstances such as average family size).

Implementation level
Indicator 4

Pay comparable wages for comparable work.

Implementation level
Indicator 5

Develop written policies, available to all employees, on how compensation and promotion decisions are made.

Implementation level
Indicator 6

Include diversity managers in periodic review of compensation to determine whether practices are consistent with a non-discrimination policy.

Implementation level

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