Performance‐related pay and the prospects for gender pay equity
Rubery, J.
J Rubery - Journal of Management Studies, 1995 - Wiley Online Library
Summary
In "Performance‐related pay and the prospects for gender pay equity" (1995), Jill Rubery critically examines the implications of performance-related pay (PRP) systems for achieving gender pay equality. The paper posits that while equal pay for work of equal value has historically been linked to objective mechanisms like job evaluation, the rise of PRP introduces a significant challenge to this progress. The core of the argument is that PRP fundamentally alters the wage-setting landscape by increasing managerial discretion in pay determination and diminishing the transparent relationship between an individual's earnings and their job grade. The methodology involves drawing upon existing literature and research into performance-related pay systems to analyze their potential effects. Rubery's analysis highlights that the problem for gender equality stems from both the inherent nature of PRP payment systems and the broader organizational and societal context in which they are implemented, including evolving employment relationships. A key finding is that PRP systems, often presented as meritocratic, can paradoxically increase gender inequality by allowing subjective criteria to influence performance appraisals and reward allocations. This subjectivity often leverages informal assumptions about women's competence, commitment, or leadership potential, which may reflect ingrained male norms, such as expectations of long working hours. The implications are significant for policy and practice aimed at gender pay equity. Rubery suggests that PRP systems can reduce transparency in pay procedures, thereby creating avenues for discriminatory practices to be hidden behind ostensibly neutral "merit" criteria. The paper also points out that while some women in higher organizational echelons might benefit from PRP, lower-grade women are less likely to experience similar advantages. This suggests a potentially uneven impact, exacerbating existing inequalities among women themselves. Ultimately, Rubery's work underscores the need for a nuanced understanding of how pay systems interact with gender dynamics, warning that without careful consideration of context and robust safeguards, PRP can undermine, rather than advance, the goal of gender pay equity.
Key Findings
- - Performance-related pay (PRP) systems pose a significant threat to gender pay equity by increasing managerial discretion in pay determination and loosening the clear link between earnings and job grade.
- PRP can reduce transparency in pay procedures, creating opportunities for discriminatory practices to be concealed.
- The reliance on subjective performance appraisal criteria within PRP systems often disadvantages women, as evaluations can be influenced by informal assumptions and male-normative expectations regarding competence, commitment, or work patterns (e.g., long hours).
- The impact of PRP on gender pay equity is not uniform; while some women in higher positions might benefit, lower-grade women are less likely to see improvements.
- The prospects for gender pay equity under PRP are heavily dependent on the context in which these systems are applied and the broader changes in employment relationships.