Michelle Brown
Discussion
in this session focussed on the impact of performance based pay systems for
women employees. A performance based pay system is any system that attempts
to link pay of an employee to some measure of individual, group or organisational
level performance. The decentralisation of the system of industrial regulation
from the late 1980's has provided organisations with greater responsibility
for the development and implementation of organisational level pay systems.
Evidence was presented that showed that the gender wage gap was widening under a decentralised system of pay. At least two factors have contributed to this widening differential between the pay of male and female workers. Firstly, women are less likely to receive paid overtime and secondly women are less likely to receive performance-based payments.
Concerns have been expressed by the Human Rights and Equal Opportunity Commission about the level of discretion that performance based pay provides an employer. For example, performance criteria such as 'zeal' and 'enthusiasm' can be highly subjective. There is also growing evidence of employers using hours of work as a performance indicator. This however can be discriminatory: it works against those who manage their work effectively and those unable to spend long hours at work due to domestic responsibilities
Evidence from a survey of CSIRO employees was also presented. In late 1998 a survey of all employees (union and non-union) was undertaken by the presenter to determine their pay system preferences. One particularly notable finding was the high level of interest expressed by women in individual performance based pay. Various interpretations of these findings were discussed. It would appear that professional women employees feel that the current pay system does not adequately recognise their contributions. This raises a number of challenges for unions. Unions have expressed concerns about the subjective nature of many performance based pay systems but need to find ways to appeal to women workers are they are currently less likely to be members.
Michelle Brown is a Lecturer in the Department of Management at the University of Melbourne. She specialises in pay system research, especially into the effects of performance based pay systems on employees, unions and organisations in Australia and the United States. She recently participated in an evaluation of the existing pay system within CSIRO.