PALMORIA GROUP
Background
The Palmoria Group (PALMORIA), is currently involved in gender inequality issues and the media recently published a report accusing them of being a Manufacturing Patriarchy. The company is currently planning for business expansion and feels that the negative public perception may adversely affect the group’s business plans.
In addition, PALMORIA seeks insight into its compliance level with the manufacturing industry minimum wage regulation of $90k
PALMORIA is keen on exploring ways to address the above issues before they get out of hand.
Key Business Questions
- Is there a gender disparity within the organization?
- Is there a gender pay gap across the organization?
- Does the company’s salary structure meet the manufacturing industry minimum wage regulation?
Tasks
- Analyzed the gender distribution across the organization and established if there is gender disparity.
- Analyzed the employee ratings, with a focus on gender performance across regions and departments.
- Analyzed the company’s salary structure, with a view to determining if there is a gender pay gap.
- Determined compliance level with the manufacturing industry minimum wage regulation.
My Approach
Defined the problem >>> Collected Data >>> Cleaned the Data >>> Analyzed the Data >>> Visualized the Results >>> Managed the result.
Key Findings
- A gender disparity exists across all regions; however, the level is marginal, especially in the Lagos and Abuja offices.
- A gender pay gap exists, with male employees earning slightly higher (on average) across all regions.
- Female employees overall performed better in period under review (reflected in the higher overall bonuses received by females).
- At an average overall salary of $73.7k, PALMORIA currently does not meet the industry minimum wage regulation.
PALMORIA GENDER DISTRIBUTION
PERFORMANCE ANALYSIS
SALARY STRUCTURE
SALARY & REGULATION
PERFORMANCE BONUS
CONCLUSIONS
Gender Distribution
- A gender disparity exists across the company, with a percentile M-F ratio of 49.2% – 46.6%.
- The gender disparity is most prominent in the Kaduna region (M-F ratio: 182-165), followed by Lagos (M-F ratio: 124-118) and then Abuja which has a negligible gender disparity (M-F ratio: 159-158).
- Of the 12 departments, 7 have a higher Male headcount, with the Legal department leading the pack (M-F ratio: 49-34).
- Overall, the gender disparity across the company is considered ‘MARGINAL’.
Salary Structure
- A gender pay gap exists across all regions of the company; at an average M-F salary ratio of $74.8k – $72.1k, male employees were noted to earn slightly more in all regions.
- Male employees earned more in total terms across 7 (out of 12) departments. On an average salary basis, Male employees earned more in 9 (out of 12) departments across the company.
- Given the marginal pay gap, there isn’t sufficient evidence based on available data to conclude if the disparity is reflective of patriarchy.
Performance Ratings & Bonuses
Female employees overall performed better in the period under review (reflected in higher overall bonuses which accrued to females).
Regulatory Compliance
- At an average overall salary of $73.7k, PALMORIA has not satisfied the manufacturing industry minimum wage regulation of $90k.
- 654 (69%) employees earn below $90k (M-F ratio: 47.8% – 48.2%). Regional distribution is Kaduna-Abuja-Lagos: 38.2% – 36.4% – 25.4%.
- With bonuses included, the net salaries of 618 (65%) employees still do not meet the minimum wage requirement.
- MINIMUM additional wage bill of $19.96 million is required to bridge the salary gap for employees earning below $90k
RECOMMENDATIONS
- Given the minimality of the gender disparity & pay gap, PALMORIA should consider reviewing its employment and remuneration policy to close the inherent gender gaps and neutralize current negative opinions.
- PALMORIA should consider reviewing the salary structure across the company to meet the minimum wage requirement.