The Implementation of an Equal Pay Management System in Organizations: Support, Obstacles and Prospects

• Published in: Tímarit um viðskipti og efnahagsmál
• Main Authors: Óskarsdóttir, Guðbjörg Ingunn, Haraldsdóttir, Ragna Kemp
• Format: Article in Journal/Newspaper
• Language: Icelandic
• Published: Institute of Business Research 2021
• Subjects: Equal Pay Standard; Quality Management; Information and Records Management; Implementation; Monitoring Institutions; D63; J16; J30; J71; L15; M10; M52; Jafnlaunastaðall; gæðastjórnun; upplýsinga- og skjalastjórn; innleiðing; lögbundnir eftirlitsaðilar; Iceland
• Online Access: http://www.efnahagsmal.is/article/view/a.2021.18.1.2; https://doi.org/10.24122/tve.a.2021.18.1.2

Iceland is the first country to legislate an Equal Pay Standard (EPS), which is intended to establish and maintain gender pay equality in the workplace. The law requires employers to obtain equal pay certification following an audit. The purpose of the research was to explain what steps EPS certified organizations had taken to implement the standard. It also casts light on which factors support the implementation process and what obstacles were encountered. Also, to explore how organizations come across increased systematic information and records management alongside the implementation. The research is based on qualitative methodology containing ten semi-structured interviews, nine within different organizations and one in an accredited certification body. It also contains a documentary analysis of the registration requirements of the EPS and reviews sent to the Icelandic Parliament on bill no. 437 in 2017. The results imply that the implementation of the EPS has supported other quality improvement and vice versa. Organizations that had already implemented quality standards and/or systematic records management had a definite advantage. Their strength lay in the expertise of staff in the field of human resources, quality and record management and they had well-established and prepared work environment. With the implementation of EPS, disciplined working methods and increased transparency in wage setting were established. Documentation of data regarding human resources increased in accordance with the requirements of EPS. The research also indicates that lack of time and added pressure due to additional workload were an obstacle in the implementation process. Job classification and wage analysis was laborious due to unclear standards for classification of occupations. Documentary analysis revealed criticism towards the EPS legislation and monitoring institutions that were considered understaffed and underfinanced. This is a matter of concern, as many organizations must implement the standard before the end of ...