PALMORIA GROUP
ANALYSIS OF GENDER DISPARITY AND COMPLIANCE WITH MINIMUM WAGE REGULATION
Background
The Palmoria Group (PALMORIA) is dealing with issues concerning gender inequality. A report titled “Palmoria, the Manufacturing Patriarchy” was recently published in the media. Given the unfavorable public perception this claim may give the organization, particularly in light of its present corporate expansion ambitions, PALMORIA is eager to investigate solutions to remedy the issues before they escalate.
Key Business Questions
• Is there a gender imbalance in the organization?
• Is there a gender pay gap in the organization?
• Is the company’s salary structure following the manufacturing industry’s minimum wage regulation?
Tasks
• Evaluate the organization’s gender distribution to determine whether there are any gender imbalances.
• Analyze employee ratings, paying particular attention to gender performance across areas and departments.
• Examine the company’s salary structure to see if there is a gender pay discrepancy.
• Determine the degree of compliance with the manufacturing industry’s minimum wage law.
My Approach
Key Findings
• Gender disparities occur in all regions; however, they are minor, particularly in the Lagos and Abuja
• There is a gender wage discrepancy, with male employees earning slightly more (on average) across all regions.
• Female employees did better overall over the review period (reflected in the higher overall bonuses accrued by females).
• PALMORIA has not met the manufacturing industry minimum wage legislation with an average total compensation of $73.7k.
PALMORIA GENDER DISTRIBUTION
PERFORMANCE ANALYSIS
PERFORMANCE BONUS
SALARY REGULATION
SALARY STRUCTURE
CONCLUSIONS
Gender Distribution
• There is a gender discrepancy across the organization, with a percentile M-F ratio of 49.2% – 46.6%.
• The gender discrepancy is most significant in Kaduna (M-F ratio: 182-165), next in Lagos (M-F ratio: 124-118), and finally in Abuja, which has a minimal gender gap (M-F ratio: 159-158).).
• Seven of the twelve departments have a more significant male headcount, with the Legal department leading the group (M-F ratio: 49-34).
• Overall, the gender discrepancy at the company is regarded as ‘MARGINAL.”
Salary Structure
• There is a gender pay disparity across all locations of the organization; with an average M-F compensation ratio of $74.79k – $72.14k, male employees earn rather more company-wide and across all regions.
• Male employees earned more overall in seven (out of twelve) departments. Male employees earned more on average in nine (out of twelve) departments across the organization.
Given the marginal pay discrepancy, there isn’t adequate evidence based on available data to infer whether the disparity is due to patriarchy.
Performance Ratings & Bonuses
• Female employees overall performed better in period under review (reflected in higher overall bonuses which accrued to females).
Regulatory Compliance
• PALMORIA has not met the manufacturing industry minimum pay standard of $90k with an average overall compensation of $73.7k.
• 654 (69%) employees earn below $90k (M-F ratio: 47.8% – 48.2%). Regional distribution is Kad-Abj-Lag: 38.2% – 36.4% – 25.4%.
• With bonuses included, net salaries of 618 (65%) employees still does not meet the minimum wage requirement.
• A minimum wage bill of $19.96 million is necessary to close the wage gap for employees earning less than $90,000.
RECOMMENDATIONS
• Given the minor gender discrepancy and pay gap, PALMORIA should reconsider its hiring and reward policies in order to close underlying gender inequalities and negate present negative perceptions.
• To achieve the minimum wage requirement, PALMORIA might consider evaluating the company’s remuneration structure.