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Employers must ditch market-based pricing for jobs to be pay equity compliant: Mercer | Benefits Canada

Canadian employers may need to re-evaluate how they think about job classes when the federal pay equity legislation comes into effect.

The new legislation, which was announced in October 2018, has strict requirements for how employers can classify a job’s worth to the organization for the purpose of compensation. Some workplaces may not be compliant, according to a webinar from Mercer Canada last week.

In particular, Mercer noted companies with market-based pricing are using a system that would put them in violation of the new law. The method of evaluation follows outdated and biased logic about which jobs are more valuable, according to the webinar.

“That is absolutely not pay equity compliant and that’s the type of problem the legislation is designed to root out,” said Cynthia MacFarlane, a talent consulting principal at Mercer. As an example of why market-based pricing wouldn’t fly, she cited the systemic bias that dictates a truck driver should receive higher wages than a daycare employee.

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Employers must ditch market-based pricing for jobs to be pay equity compliant: Mercer | Benefits Canada.

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