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“Salary Inequities At Acme Manufacturing” Essay

799 words - 4 pages

1. What would you do if you were Black?
First, I would meet with the female supervisors to discuss the results of the compensation study and apologize for the pay gap. Then I would inform them that they will receive salary increases effective immediately. Thirdly, I would have an open discussion regarding back pay. I would explain to them that while I intend to compensate them fully which would include back pay; I would like to discuss payment options related to the back pay. I would ask them to consider allowing the company to setup an installment plan for their back pay. I would present the proposition in such a way that it would allow the females to negotiate the time frame for ...view middle of the document...

iii. To increase their salaries would also arouse suspicion among the female supervisors as well as the men. This action will also affect the bottom line which must be considered, however I definitely feel that it is a part of the solution.
iv. Without a course of action to at least begin negotiations with and true transparency meetings with three female supervisors may result in more liability for the company. A meeting with the female supervisors is definitely warranted but preparation is required. Consulting legal counsel before the meetings is important.
2. How do you think the company got into a situation like this in the first place?
Ultimately the company got into this situation because it lacked a strong salary policy and/or HR department. The purpose of a salary policy for any organization is to determine the principles or guidelines that support its salary structure. According to the NCVO any organization’s salary policy regardless of size must be based on fairness, openness, objectivity, responsibility, and effectiveness ( Without a salary policy, decisions will be heavily influenced by personal biases.

Creating A Salary Policy. (2012, September 20). Retrieved from National Council for Voluntary Organizations:...

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