Equal Pay Act

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Equal Pay Act

Equal Pay Act, which was introduced by the Unite States, was intended to prohibit discrimination of sex in the payment of wages by employers. Nowadays, when designing the internal alignment piece of compensation program, we should pay more attention to the law. Personally, I believe that Equal Pay Act plays an indispensable role in designing the salary program and the reasons are as fellows.

First and foremost, the importance of Equal Pay Act largely lies in that it plays a part in eliminating discrimination by law. Equal Pay Act, which was issued in 1963, takes the lead in advocating the concept of equal pay for equal work in the Unite States. Therefore, we should conform to the law in the progress of making compensation program. In other words, we should attach importance to regulate the internal alignment piece of compensation program according to law.

Secondly, there is no denying that equal pay for equal work persists in maintaining the internal equity, which is one of the most important object of pay management. According to Adams’s equity theory, when employees get paid, they care about not only the absolute amount of the salary but also the relative pay. They will use many kinds of methods to judge whether the salary is reasonable and the result will affect the enthusiasm of employees.

Last but not least, equal pay has its great values for improving the company performance in the long run. On the one hand, equal pay can reduce the conflict with employees. On the other hand, equal pay can create a healthy competitive atmosphere. In this case, the pay program can help the company attract, develop, and retain talent. And equal pay will finally increase organizational loyalty and improve work performance.

In the light of the above, I argue for the opinion that Equal Pay Act plays an important role in salary…...

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