Salary Inequities at AstraZeneca

AstraZeneca, one of the world’s largest pharmaceutical companies, has violated the Equal Pay Act of 1963. After conducting a compliance review, the US Department of Labor’s Office of Federal Contract Compliance Program (OFCCP) concluded that AstraZeneca paid some women employees at least $1700 less than their male counterparts. As a result, AstraZeneca has hired our compensation consultants to review how to avoid salary inequality in their organization.

In some cases, women earn less than men who work similar jobs. Some reasons for having a discriminatory compensation plan between men and women are education, the course of a female’s lifetime, life-work balance, quantity or quality of production, expertise, or the location of the job. Women may not be assigned to significant processes despite having the same level of qualification as men, resulting in lower pay. Moreover, more females end up in lower-paying departments, and most employers do not pay mothers during maternity leave, causing them to earn less than their male counterparts.

Furthermore, men change jobs more frequently, increasing their bargaining power. Men are more likely than women to practice work-life balance by engaging in more overtime activities, such as increasing the number of hours put into a job. As a result, men have a better chance of earning more than women. In this case, male sales representatives will make more if they work more hours than their female counterparts.

Aside from the point plan, AstraZeneca could take other steps to reduce the possibility of gender pay disparities. First, assess both sexes’ skills, responsibilities, and working conditions in the same job position. Women, mainly working mothers, frequently have rigid schedules, so adding flexibility will increase their capability, lowering the gender wage gap. In addition, begin a remuneration value examination to identify professions where sexual orientation inconsistency may exist to resolve it. For example, choosing parameters in which the contributions of men and women must be equal. Furthermore, the company should consider qualitative and quantitative factors when measuring performance. Finally, encouraging pay transparency so employees can freely discuss pay will help address pay inequality.

AstraZeneca’s compensation strategy ought to be based on job evaluations. The first step the firm must take is to comprehend the EPA law that mandates equal pay for roles that necessitate comparable skills, effort, and obligation and are performed under similar conditions. Secondly, having an open pay policy should aid in engaging employees in mutually beneficial activities and improving wages, hours, and working conditions. Employee morale will improve if documented salary guidelines and requirements for bonuses and overtime are based on fair, objective, and measurable criteria. It demonstrates to the employees that they are valued for their efforts.

Thirdly, emphasize top management training to aid in employee retention and regular audits to ensure that the company is not engaging in discriminatory practices. Instead of gender, the recruitment process should be based on qualifications, education, and skills. Determine whether employees are meeting their objectives through goal-oriented performance evaluation. Finally, provide daycare credit to help working mothers get someone else to watch their children while they work, allowing them to work long hours like men.

To summarize, employees should be paid fairly and equally based on their position and skills. Furthermore, the hiring process should be based on a diverse workforce to ensure that men and women are given equal opportunities. To obtain the same degree, women pay the same tuition as men. As a result, unless they have different work experience for the specific job, I believe it is fair for both gender to earn the same salary for the same position.

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