Adrian Bauer· Total Rewards Manager, Beacon Retail Group
Asked in Pay Equity & Transparency ·
Is pro-rating bonus and allowances enough to show equal pay for part-time staff?
We are a regional bank in Spain with about 3,600 employees, 11% of them part-time and nearly nine in ten of those women. Base pay is pro-rated cleanly. The trouble is everything else.
Our sales incentive has a threshold that is not pro-rated, so someone on 60% hours has to hit the same absolute volume before earning anything. On-call and travel allowances are flat. Car eligibility starts at a grade most part-timers never reach.
On an hourly basis total remuneration for part-time staff comes out 7.8% below full-time colleagues in the same grade. How have others tested and fixed the variable elements?
6 helpful · 2 insightful · 1 agree · 3 replies · 147 views · 4 following
Accepted answer· by Julia Ibrahim
We went through each pay element and asked one question: does this pay for time, for output, or for an expense? Time-based elements are pro-rated. Output-based ones have the target pro-rated as well as the payout, which is where your threshold fails. Expense-type allowances are paid in full whenever the expense is incurred. Pro-rating the incentive threshold was the big one. Before the change 31% of our part-time advisers earned any incentive at all, against 68% of full-timers. A year later it was 61%. The cost was about 0.3% of the incentive pool. Counsel reviewed the plan rules before we changed them.
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