Salary Inequities

SALARY INEQUITIES AT XCEL MANUFACTURING

a) Advice THREE (3) possible actions that Mason should take in solving the salary inequities.

First, Mason should meet with the female supervisors to discuss the results of the compensation study and apologize for the pay gap. Then he must inform them that they will receive salary increases effective immediately. Thirdly, he also might have an open discussion regarding back pay. Mason must explain to them that while he intend to compensate them fully which would include back pay, he can be like to discuss payment options related to the back pay. Mason need to ask them to consider allowing the company to setup an installment plan for their back pay. He need to present the proposition in such a way that it would allow the females to negotiate the time frame for payments. Then, he can set up the situation in such a way that he can exceed their expectation for example asking them to allow the company to pay them in installments over the course of the next five years when in fact they would really like to pay them over the course of three years. He also have not discuss how the salary inequity occurred, however he definitely discuss the policies and procedures that he could be establishing to prevent this situation occurring again. He also would reiterate how much he truly value them as employees. Lastly, Mason sholud have a meeting with all of the supervisors to inform them that he would be making adjustment to some of the salaries to ensure that all employees are compensated equally across the board. The new compensation plans would presented at this time as well. Anyone with questions regarding their individual salaries could meet with HR.

i. To do nothing would simply perpetuate the problem not to being unethical and illegal. The pay inequities expose the company to lawsuits from the women. Since Jack’s family owns the company, ignoring the problem threatens the long-term success of the company regardless of his...