Structured Pay Codes: Ethical And Managerial Discretion

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The Equality and Human Rights Commission states that employers are responsible for providing equal pay for equal work and for ensuring that pay systems are transparent. Structured pay systems, based on individual performance, rather than a system that relies primarily on managerial discretion is more transparent and more likely to provide equal pay.

Informal pay structures based on initial negotiation with subsequent reviews at managerial discretion, driven by affordability and individual perception of how deserved an increase is – a perception which is subjective and open to extreme bias i.e. likability, achieving objectives, behaviours displayed etc. is entirely unethical, discriminatory, subject to abuse and in complete contradiction to the lawful standards as required by The Equality Act 2010.

The …show more content…

They draw on precedent and case law and explain the implications of every clause in technical terms. These statutory codes are the authoritative source of advice for anyone who wants a rigorous analysis of the legislation's detail. For lawyers, advocates and human resources experts in particular, they will be invaluable.

All CIPD members are expected to adhere to the standards and behaviours set out in its Code of Professional Conduct, to “advance employment and business practices that promote equality of opportunity, diversity and inclusion and support human rights and dignity”. The HR Profession Map “sets out standards for HR professionals around the world: the activities, knowledge and behaviours needed for success”, CIPD (2015).

The Code of Conduct and HR Profession Map were both designed to be relevant and applicable to all HR professionals. They define ‘professionalism’ in the context of HR and provide a rigorous framework for practitioners to utilise their skills, knowledge and behaviours to ensure personal and organisational objectives are fulfilled ethically, equitably and