1

Salary Inequities Study: Astra Zeneca

HRM/531

February 5th, 2018

Business Administration
 2

Salary Inequities Case Study: Astra Zeneca

A company named Astra Zeneca has requested the services of a compensation consultant

because women employees were being paid unfairly. Therefore, there will be a discussion about

the wage discrimination that women face. Research will be conducted to see if there is gender

bias within the process of hiring or perhaps salary expectations are being set too low. The

Gender Wage Gap: Women, Work & Wage Inequality research will provide more insight of the

salary percentage women are offered compared to men. The company now uses the point

method to ensure issues do not arise again. Astra Zeneca are needing a compensation plan to

avoid further discrimination. This essay will show an analysis of current job market

compensation plans and pay scales against those of Astra Zeneca.

Astra Zeneca

Team “D” discussed three questions to determine if there were any nondiscriminatory

reasons for wage differences between male and female employees in the case study. Our team

agrees on the following answers:

11-13. Although the case with OFCCP is closed, we wonder if there are any less discriminatory

explanations possible for why our women sales reps on average earned less than men. If so, what

are they?

Based on "The Gender Wage Gap: Women, Work & Wage Inequality" research,

Companies offer women 3% less than men for the same roles, some of the companies

offering as low as 30% less. Team D sees the same situation going on for the women

employees at AstraZeneca. At first, the women may not have realized they were

underpaid compared to the salaries that the men of the company were making. Another

reason they were underpaid is that men are still considered the breadwinners within the
 3

household, so companies pay more to a man because they have a family to support.

Another reason we found why women were not paid equally was that they were not

receiving the same raises and promotions as men were. AstraZeneca needed to have

implemented a guide for "job ranking." Finally, it is difficult to determine if the lower

pay was because of unconscious gender bias in the hiring process or results from an

ongoing cycle of women being underpaid and setting their salary expectations too low.

11-14. Our own company now uses a point method to evaluate jobs for pay purposes, and each

resulting job class also has a rate range associated with it. Sales associates are now paid a salary

that is not based on incentive pay. List three specific things we can do to ensure that a similar

problem (inequitable pay based on gender) does not arise again, assuming they continue using

the point plan.

Three specific things that AstraZeneca could do is first to have a clear job description and

its responsibilities for the employees. Second, have a “point system” which is

compensable factors to determine the job's worth. Some factors are Skill,

Responsibilities, Effort and Working conditions which helps to evaluate jobs. Third, is to

make sure every gender’s pay is based on how educated and how experienced they are.

11-15. What sort of compensation plan would you recommend for us, and why?

The best compensation plans the team could recommend is that the company list all

current positions and what the pay is in salary and at the same time offer opportunity to

receive a bonus based on the work that they do. Also, perform an annual pay equity

analysis should be done to make sure the pay is up to par with the employee’s

performance.
 4

Upon the team analyzing the current job market compensation plans, the team found that the

current job market shows an increase of salary by 3%. In turn, this shows that there is an

increase of people in the job market, which is good for the economy. When there is a constant

flow of money into the economy, it helps the country with providing jobs and helps people with

paying taxes, purchasing homes, and living a substantial life. An increase in salary gives people

the opportunity to save for retirement and the future. It also gives people an opportunity to get

out of debt.

In comparison, AstraZeneca’s compensation plan depends on the job title. Compensation is

determined based on the type of job. They offer jobs in various categories such as administrative,

business development, clinical development, etc. They do offer benefits in health care and

retirement. The pay scales of AstraZeneca are higher in comparison to jobs in the current market.

Pay scales vary according to the industry.

The team members have learned very important lessons in the study of this case. First, the

importance of having structure in the Human Resource department where a standardized hiring,

onboarding and training process will be in place. Second, creating job descriptions that are

approved by each supervisor and revised with the employees to make sure they are done

correctly and that the employee understands the scope of his/her job and the responsibilities that

come with it. Third, a competitive compensation analysis should be conducted to assure that

the employees are being paid fairly following the Equal Employment Opportunity Act, Title VII

states that an employer cannot discriminate based on race, color, religion, sex, or national origin.

This law was designed to make companies hire without discrimination and to protect those who

are a minority that are different in race, color, religion or come from a different origin.
 5

The team members have taken all the learning from this case and will be applying in our

careers as employees where we seek out fairness. As business owners, where we will do what’s

right and fair for our employees. As employees where we will make sure that the company and

employee are protected by doing the right thing and following the law and the good values of an

organization.

Conclusion

Patricia A. Shiu, director of OFCCP stated that “Forty-eight years after President

Kennedy signed the Equal Pay Act, women are still fighting for fundamental fairness when it

comes to how we are paid.”

It is difficult to determine if it is because of unconscious gender bias in the hiring process

or results from ongoing cycle of women being underpaid and setting their salary expectations too

low. Organizations should support pay transparency to prevent the inequitable pay. If women

employees are not able to discuss their salaries with their colleagues, they cannot figure out that

they are making less than their male colleagues. The paycheck fairness act would reduce pay

secrecy, giving women a better tool to address pay discrimination.

 6

References

The Gender Wage Gap: Women, Work & Wage Inequality - Hired. (n.d.). Retrieved from
https://hired.com/gender-wage gap?
utm_source=twitter&utm_medium=media&utm_campaign=q2_16_gender_wage_gap&utm_con
tent=

http://www.biopharminternational.com/astrazeneca-settles-sex-discrimination-lawsuit-0