Answer to Question #217372 in Management for ZAMA

Question

In 2020, Zandi started working as a lecturer at UFH in the management and commerce faculty and earns R20 000 a month. She enjoys her job and was happy with her salary until she spoke to her friend who works in the Science faculty in Alice and found out that her friend earns R25 000! She also looked online and saw that she could get a similar job at UCT and earn R30 000 a month, although she would have to teach more classes. 

Now she is very angry and upset. It is affecting how she feels about her job, as she thinks her colleagues are abusing her and that they don't value her.

Read up on the concepts of internal, external and individual equity and explain to Zandi why these differences might occur. What should HR do in this instance?

Answer 1

Answer

The specific tactics that your organization should use to address pay fairness vary widely depending on business goals. However, according to our Pay Practices and Compensation Strategy survey, there are two approaches Zandi's organizations consistently should use to ensure pay fairness;

(I) Leverage market data to establish externally competitive pay ranges.

(ii) Use analytics to ensure pay is internally equitable.

  

Furthermore, HR should employ Zandi, train her, compensate her, developing policies relating to her job occupation, and developing strategies to retain her in.