PALMORIA GROUP
The Palmoria Group is embroiled in issues bordering on gender inequality in its 3 regions as well as the recently published news by the media with the headline “Palmoria, the Manufacturing Patriarchy”. There is a need to address these issues before they get out of hand.
Key Business Questions
- Investigate inequality issues pertaining to gender distribution within the regions and departments.
- Scrutinize ratings based on gender.
- Analyze company’s salary structure to identify gender pay gap within departments and region
- Confirm compliance with regulation requiring $90,000 employees’ minimum pay.
- Calculate bonus pay based on performance rating:
To individual employees without bonus, inclusive of bonus and total amount payable per region and company-wide.
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.
GENDER ANALYSIS
PERFORMANCE ANALYSIS
SALARY ANALYSIS
MINIMUM WAGE ANALYSIS
ANALYSIS OF BONUSES
FINDINGS
Inequality issues pertaining to gender distribution within the regions and departments
Males were more than females by about 3%, marginal gap and undisclosed were 4% of employees. Within the departments, males’ headcount range was (49-31) and females’ (41-28). In the regions, the range for males’ headcount was (182-124) and females’ (165-118). The marginal gender distribution gap indicated that the organisation offered diversity and equality in the recruitment process.
Ratings based on gender
Females performed better than males that trailed behind. Sum of females’ ‘very good’ and ‘good rating’ was 138 and 118 for males. Sum of ‘poor and very poor’ for males was 101 and 78 for females. ‘Average’ was most popular rating. Males scored higher rating (212) followed by females, (190), a small margin. (TOPN1) across the departments was ‘Average’ and was led by females. The highest rating in the regions was ‘Average’, also attained by females. Overall, females were more industrious and achieved better than males. Females are more productive than men according to a new research. According to Hive, women work 10 percent harder than men in today’s offices.
Company’s salary structure to identify gender pay gap within departments and regions
The result showed a narrow gender pay gap within regions as average salary among males and females were nearly at par; highest was £77K (male, Lagos) and lowest £70K (female, Abuja). Undisclosed in Lagos was the peak (£87K) of salaries. Departments males’ TOPN3 were £82K, £79K and £78K and females, £79K, £77K and £75K, these were quite close. Undisclosed’s TOPN3, £106K, £102K and £94K were unusually high suggesting they could be contractors or subject matter experts. Overall, there was no conclusive evidence to confirm the existence of a substantial pay gap between the males and females within the regions and departments.
Compliance with regulation requiring £90,000 employees’ minimum pay
The organisation did not comply with the regulation requiring £90K because only 31% of the employees were paid the above this value. The overall average salary (£73.7K) and minimum salary (£28.13K) were less than the minimum requirement, (£90K). In conclusion, 315 (33.3%) females and 313 (33.1%) males earned below £90K while 126 (13.3%) females and 152 (16.1%) males are earning above £90K. Males earned slightly more but the difference was minor. The shortfall which was the gap that needed bridging for compliance was £23,480,000 minimum per annum.
Bonus, inclusive of bonus and total amount payable per region and company-wide
The total bonuses paid to employees and company-wide, £2,199,279.3 increased the total salary by 0.99% from £69,723,670 to £71,922,949.3 suggesting an insignificant effect or increment. In Lagos total salary was £18,954,570, bonus was £572,223.31 resulting in a new total salary, £19,526,793.31. In Abuja, total salary was £24,116,280, bonus was £801,144.21 producing a new total salary, £24,917,424.21. Kaduna’s total salary, £26,652,820 plus a bonus, £825,911.78 resulted in a new total salary £27,478,731.78. Bonuses paid to individual employees were quite low compared with their previous salaries and did not influence the pay gap considerably enough to achieve the minimum requirement. Despite added bonuses, Palmoria did to meet the £90K minimum requirement per region and company-wide.
RECOMMENDATIONS
Palmoria to employ more staff to improve the gender distribution where headcounts are low for example in Lagos region and in departments like Accounting, Legal etc where more females are needed to bridge the gap.
Empower males by making provisions for compulsory skills/professional development. Set up reward schemes for females and other high rating achievers to encourage good performance.
Limit unfair salary consumption and investigate why the undisclosed are receiving bigger chunks of total salary as well as the highest amounts of salary in the regions and departments. If necessary, carry out restructuring to close the minor gender pay gap.
Set up a plan that will help to achieve the compliance with the £90K minimum pay. Considerations may include:
- Restructuring to reduce the staff number of high earners e.g undisclosed and some of those earning £60K and above.
- Implement attractive part-time work where possible.
- Reduce the number of employees earning between £50K – £30K drastically because a substantial amount of funding (~£15M out of ~£23.5M) is required to increase their salary to £90K minimum.
- Source for extra revenue to make up £23,480,000 minimum per annum.
Added bonuses did not help Palmoria to meet the £90K minimum requirement per region and company-wide. Palmoria could look into acquiring other services that could boost their revenue so as to be able to comply with the requirement.
Maintain equal opportunity schemes and demonstrate a zero-tolerance approach to all forms of discrimination.
Ensure employees have access and enjoy equal rewards, resources and opportunities regardless of gender.
Gender inequality in the workplace broadly means that male or female employees do not enjoy the same opportunities, working conditions and/or pay as their counterparts of the opposite sex.