Before You
Start
Step 1: Identifying and
Grouping Job Classes
Does the Ontario Pay Equity Act apply to you? If so, what documents will you need to gather before you start?
Documents you will need:
- A list of all employee names
- A list of all job position titles
- Employment type for each employee (full time, part time, contract)
PEO Resources:
Using neutral job descriptions, sort all jobs in your organization into clusters called “job classes” using four required criteria.
Documents you will need:
- Job descriptions (or job ads if you do not have job descriptions)
- Compensation info for each job position
PEO Resources:
Step 2: Determine Gender
of Job Classes
Step 3: Evaluate
the Job Classes
Use three required criteria to determine whether each job class is “gender-neutral”, “female”, or “male”.
Documents you will need:
- Job descriptions (or job ads if you do not have job descriptions)
- Compensation info for each job position
PEO Resources:
If Step 2 shows you that you have both female and male job classes, you are ready to move to the next stage of quantifying each job class’ contribution to the company’s success. This quantification process requires the use of four “factors”: skill, effort, responsibility, and working conditions. The quantification method that the PEO normally uses is the “point value” method.
Documents you will need:
- Job descriptions (or job ads if you do not have job descriptions)
- If you collect information through other means, e.g. interviews, questionnaires or job evaluation committees, gather those documents for this step.
PEO Resources:
Step 4: Determine
Job Rates
Step 5: Compare Female and Male Job Classes
Determine the job rate of each job class by taking all elements of compensation in addition to base wage or salary (e.g. commission, benefits, paid leaves, etc.), and converting them to a common unit of measure. The most common unit of measure is an hourly rate.
You need to include all forms of compensation, not just base salary. For example, include the value of supplementary health benefits, commissions, tips, vehicle or expense allowances, etc.
PEO Resources:
You are now ready to compare your female job classes to male job classes using either the “Job-to-Job Method” or the “Proportional Value Method”. In some circumstances, you may need to use both.
PEO Resources:
Step 6: Calculate and Pay Adjustments
Step 7:
Maintenance
The comparisons in Step 5 will reveal whether pay increases are owed to any female job classes. Pay increases may be retroactive and if so, a Review Officer or the Tribunal may require that interest be applied to those payments.
PEO Resources:
Don’t let your good work go to waste by letting new pay equity gaps emerge or old gaps re-emerge.
Because every workplace is unique, Ontario’s Pay Equity Act only imposes a general obligation on employers to maintain pay equity, i.e. to prevent new gaps emerging. The Act does not set out specific steps or requirements for maintenance.
PEO Resources: