Perceived inequity or unfairness, either external or internal, can result in low morale and loss of organizational effectiveness. Internal pay equity exists when employees in an organization perceive that they are being rewarded fairly according to the relative value of their jobs within an organization. Workplace equity refers to the perception that all employees in an organization are being treated fairly.Įxternal pay equity exists when employees in an organization perceive that they are being rewarded fairly in relation to those who perform similar jobs in other organizations. It can be defined in the following three ways:
CCHRSC compilation of average income of centre-based ECEs and Assistants by educational attainment and province.See the links below for more information: However, scales have been developed as a point of reference. No pan-Canadian wage scales or approach to compensating the child care workforce currently exist.
The Ontario Network of Employment Skills Training Projects (ONESTEP) has developed an excellent manual on compensation practice and theory – Compensation Guide. It is to your advantage to ensure that your employees are creatively compensated and knowledgeable about their benefits. Compensation and benefits affect the productivity and happiness of employees, as well as the ability of your organization to effectively realize its objectives. Good Practice: A good compensation strategy includes a balance between internal equity and external competitiveness. To a large degree, adequate or fair compensation is in the mind of the employee. The most appropriate compensation will meet these individual needs. People have different needs or reasons for working. The uniqueness of each employee must also be considered. In determining effective rewards, be careful about the perception of fairness in wages.
Indirect financial compensation, including all financial rewards that are not included in direct compensation and can be understood to form part of the social contract between the employer and employee, such as benefits, leaves, retirement plans, education and employee services.Sometimes these are built in to wage rates, and sometimes they are separate (e.g., Newfoundland and Labrador).
Child care is somewhat unique in that some provinces offer “wage enhancement” or “pay equity” supplements to wages. Direct financial compensation, consisting of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals.It is the ability to achieve results that is critical to organizational success.Ĭompensation can be defined as all of the rewards earned by employees in return for their labour. These are just a few of the factors explored in this section. Your philosophy is formed by considering a number of factors, including: the balance of direct and indirect rewards the complexity and responsibility of a position and the candidate or employee filling it and your focus on internal versus external equity. This is often referred to as developing your compensation philosophy. The design process is started by identifying desired outcomes and goals for your organization.