SSHRC Pay Equity Report 2024

September 3, 2024

On this page

• 1. About the Social Sciences and Humanities Research Council
• 2. Objectives of the Pay Equity Act
• 3. Background
• 4. Employer Obligations – Create a Pay Equity Plan
• 5. Job Evaluation at SSHRC: the Hay Method
• 6. SSHRC’s Response to Pay Equity Legislation
• 7. Calculating Compensation
• 8. Results from the Comparison of Compensation
• 9. Employee Feedback
• Agreement
• Appendix A: Sample SSHRC Job Profile
• Appendix B: Job Classes at SSHRC and their Respective Position Titles
• Appendix C: The steps of SSHRC’s Response to Pay Equity Legislation

1. About the Social Sciences and Humanities Research Council

The Social Sciences and Humanities Research Council (SSHRC), through grants, fellowships and scholarships, promotes and supports research and research training in social sciences and humanities to develop talent, generate insights and build connections to advance social, cultural and economic knowledge for the benefit of all Canadians. In fulfilling its mandate, SSHRC employs approximately 360 employees. 

2. Objectives of the Pay Equity Act

The Pay Equity Act was passed by Parliament and received Royal Assent on December 13, 2018. It came into force on August 31, 2021. The Act seeks to address the undervaluation of women’s work by closing the gender wage gap between predominantly female and predominantly male jobs that contribute equal value to an employer’s operations. Under the Act, pay equity is therefore about “equal pay for work of equal value.” It is not about equal pay for the same work; that is dealt with under different legislation.^{Footnote 1} The Act applies to all federally regulated workplaces with 10 or more employees, including SSHRC.  

The development or maintenance of a pay equity plan allows employers to identify and address any pay inequities that might exist in their workplace. This report serves as SSHRC’s pay equity plan and summarizes the results of the analysis conducted to investigate whether pay inequities exist within the organization. 

3. Background

What is Pay Equity? 

Canadians have the right to experience workplace compensation practices that are free from gender-based discrimination.^{Footnote 2} Pay equity is also known as “equal pay for work of equal value.” This means that if two different jobs contribute equal value to their employer's operations, the employees in those positions should receive equal pay.  

“Equal pay for work of equal value” is a little bit like comparing apples to oranges. On the surface, the two fruits may be quite different, having their own colour, form and taste. But if one considers their overall value to the human body, they are equally nutritious: they each have similar levels of calories, vitamins and hydration.  

Of course, our jobs at SSHRC cannot be reduced to fruit! But we can expand on the analogy. Consider comparing two different jobs: for example, comparing the value of a truck mechanic job (a role commonly held by men) to that of an account technician job (a role commonly held by women). If it was determined that each job provided an equal value to the employer’s operations, then the employees in these two different jobs should be receiving equal rates of pay. 

Why is pay equity important? 

Pay equity is important because it addresses the undervaluation of women’s work, which contributes to the gender wage gap. Jobs that are commonly held by women tend to be paid less than jobs commonly held by men, even when the work is comparable in value based on skill, effort, responsibility and working conditions. 

The gender wage gap is a persistent problem: in 2020, a woman in Canada earned 0.89 cents for every dollar a man earned. That is equivalent to a $3.52 hourly wage rate gap (or 11%) between men and women.^{Footnote 3}

What is pay equity not about under the Pay Equity Act? 

Pay equity is not about “equal pay for equal work,” which, returning to our fruit analogy, is like comparing apples to apples. "Equal pay for equal work” compares the pay of similar jobs, where women and men are doing the same work. For example, comparing a female truck mechanic’s pay to a male truck mechanic’s pay, or comparing a female bank teller’s pay to a male bank teller’s pay. 

What is gender predominance? 

The Act requires employers to identify job classes (i.e., groups of individual positions that share certain similarities; see Section 6 below) and then determine which ones are “predominately female”, “predominately male”, or “gender neutral.”  

There are three criteria used to determine the gender predominance of a job class.  

1. Current incumbency – At least 60% of the positions in the job class are occupied either by women or by men; 
2. Historical incumbency – Historically, at least 60% of the positions in the job class were occupied either by women or by men; and
3. Gender-based occupational stereotype – The job class is one that is commonly associated with women or men due to gender-based occupational stereotyping.

Job classes that are occupied by less than 60% men or less than 60% women (for example, 58% women and 42% men) are considered “gender neutral.”  

The Act requires employers to determine the gender predominance of classes of jobs. As we will see later in this report, there are roles at SSHRC that are female- or male-predominant. Pay equity is not about changing or addressing this predominance. Rather, it is about ensuring that jobs of equal value are receiving equal pay, irrespective of a given job’s gender predominance.   

A human rights interpretation of “woman” and “man”  

Ensuring that pay equity is done in a way that respects gender diversity and gender identity is a best practice and an essential component of a human rights approach to pay equity.  

This is why the word “woman” in the Pay Equity Act is interpreted as including all individuals who identify as women or decide to be counted as a woman, notwithstanding their sex assigned at birth. The same interpretation applies to the word “man.”  

In line with the human rights approach described above, the Act does not require every employee to identify as being a “woman” or a “man.” The legislation does not currently address the undervaluation of work beyond the woman/man gender binary. In other words, addressing the wage gaps that could impact other gender equity-seeking groups—other than women—is not currently within the Act’s scope.

4. Employer Obligations – Create a Pay Equity Plan

The Canadian Human Rights Commission requires employers to establish a pay equity committee and create a pay equity plan within three years of becoming subject to the Pay Equity Act. To create a pay equity plan, they must:

• Identify job classes in the workplace; 
• Determine their gender predominance: which job classes are commonly held by women and which ones are commonly held by men; 
• Evaluate or value the work done in all predominantly male and female job classes; 
• Calculate total compensation in dollars per hour for every predominantly male and female job class; and, 
• Determine whether there are differences in compensation between jobs of equal value. 

Employers must post a draft of the pay equity plan and a notice to employees of their right to provide comments on the draft plan. After having given employees at least 60 days to provide comments, employers must post the final version of the pay equity plan and the notice of increases, if applicable. 

Once the final version of the pay equity plan has been posted, employers must correct any pay equity gaps. This is done by increasing the compensation of employees in jobs that are not receiving equal pay for work of equal value. These increases in compensation are payable in full the day after the final version of the plan is posted; however, employers may be allowed to phase-in these increases. 

SSHRC and NSERC both established pay equity committees in 2022. The two committees worked jointly, along with a small team from Human Resources and with the support of Korn Ferry (a firm that specializes in job classification and pay equity), to develop each agency’s respective pay equity plan.

5. Job Evaluation at SSHRC: the Hay Method

The lack of a consistent methodology for determining the classification, or level, of positions can lead to or contribute to pay inequities. SSHRC, however, uses the Hay Method of job evaluation to determine the classification of all positions in the agency. The Hay method provides a consistent and objective framework to fairly analyze organizational structures and evaluate jobs. The Hay Method is compliant with pay equity legislation and is the most widely used job evaluation methodology worldwide. SSHRC has been using the Hay Method to determine job classification since 2004.

The Four Universal Factors Used in the Hay Method at SSHRC

The Hay method identifies the relative value (or weight) of positions within an organizational unit by measuring job content. The Hay Method at SSHRC uses four universal factors and 11 subfactors to measure the relative size of jobs, to break down their various components and decide on an appropriate level of evaluation for each of the eleven elements. 

1. Know-How  

   This factor is used to measure the total of every kind of knowledge and skill, however acquired, needed for acceptable job performance. Three subfactors are considered:  

   • practical procedures and knowledge, specialized techniques and learned skills;  
   • planning, coordinating, directing or controlling the activities and resources associated with an organizational unit or function; and  
   • active, practising, person-to-person skills in the area of human relationships. 
2. Problem Solving  

   This factor measures the thinking required in the job by considering two subfactors:  

   • the environment in which the thinking takes place; and  
   • the challenge presented by the thinking to be done.
3. Accountability  

   This factor measures the relative degree to which the job, when performed competently, can affect the end results of the organization or a unit within the organization. The opportunity to contribute to an organization is reflected through two subfactors:  

   • the degree of the decision-making or influence of the job; and  
   • the nature of that effect. 
4. Working Conditions  

   This factor measures the context in which the job is performed by considering four subfactors:  

   • Physical Effort – Levels of physical activity that vary in intensity, duration and frequency that contribute to physical stress and fatigue.  
   • Physical Environment – Progressive degrees of exposure of varying intensities to unavoidable physical and environmental factors that increase the risk of accident, ill health or discomfort.  
   • Sensory Attention – Levels of sensory attention (e.g., auditing, inspecting, mechanical equipment, tabulating data, proofreading, technical troubleshooting, manual manipulation) during the work process that vary in intensity, frequency and duration.  
   • Mental Stress – Progressive degrees of exposure of varying intensities to factors inherent in the work process that increase the risk of such things as tension or anxiety. 

For every job profile in the organization (see Appendix A for an example of a job profile), points are assigned for each of the four factors, including the eleven subfactors, and a GR-Level classification is assigned based on the point total. 

Because jobs have so many different variables, it is possible that a job without a high score in ‘Know-How’ but with severe ‘Working Conditions’ could result in the same number of points—and GR level—as a job that has the opposite components. For example, an insurance clerk and a bus driver have few job responsibilities that are similar but might be evaluated at the same point total. 

The following briefly describes how job evaluation is carried out at SSHRC.

A Human Resources (HR) Classification Committee, composed of team leads and advisors from the HR Operations team, reviews and evaluates job profiles using the Hay Method (except for HR and executive positions which are evaluated by an external consultant). This is done either when the job profiles are newly developed or when they are revised. All members of the HR Classification Committee must receive certified training in the Hay Method.

Once the HR Classification Committee reaches a consensus, a recommendation is prepared for the Job Evaluation Advisory Committee (JEAC) for review and validation (except for executive positions that are reviewed and approved at the presidential level).

JEAC is composed of representatives appointed by SSHRC and NSERC, at the director level or above, who have delegated accountability for classification as part of their role. The primary mandate of JEAC is to review the classification results (excluding executive positions), to ensure the evaluations prepared by HR (or by a recognized third party in the case of HR positions) support the overall integrity and relativity of job evaluation at SSHRC. Before being onboarded to the committee, all JEAC members receive training in the Hay Method.

Compliance with the Pay Equity Act 

The pay equity legislation refers to four factors used in job evaluation: Skill, Effort, Responsibility and Working Conditions. The Hay Method translates these four factors into Knowledge, Problem Solving, Accountability and Working Conditions, which is consistent with the legislation.

6. SSHRC’s Response to Pay Equity Legislation

While the Hay Method as employed at SSHRC is fully compliant with pay equity legislation, as part of the process to demonstrate this compliance, SSHRC undertook a full analysis of its existing job classification data for quality assurance purposes.

SSHRC’s HR division hired Korn Ferry—experts in job classification and pay equity—to conduct a formal review of all job evaluation data for each position across the agency. The primary objective of this review was to identify any potential pay inequities and to identify and rectify any anomalies that might be present in the job evaluation factors and subfactors for SSHRC’s positions.

For each position, an analysis was carried out to ensure that the assigned point ratings made logical sense across the organizational charts. The goal was to ensure consistency in the assessment of point allocations for the various roles.  

A quality assurance exercise was carried out for positions with direct supervisory responsibility, focusing on the problem-solving and accountability factors of the Hay Method. The aim was to verify and ensure that the point ratings for these factors for subordinate positions were not higher than those of their supervisors.   

An analysis was also carried out for all generic positions^{Footnote 4} to guarantee uniformity in point factors across NSERC and SSHRC. This step aimed at ensuring equity and parity in the evaluation process for similar roles. All compiled data underwent a final review to identify and rectify any inconsistencies or errors. Minor corrections were made to ensure the overall integrity and reliability of the job evaluation data. Examples of such corrections included ensuring that the job evaluation point ratings for all positions within given generic positions were identical, and ensuring positions were assigned to the appropriate job classes.

This quality assurance exercise resulted in no impacts on, or changes to, classification levels (GR levels) of positions within SSHRC, reinforcing that the assessment of classification within the organization has been appropriately performed since the adoption of the Hay Method by the agency.

The entire process prioritized the establishment of sound and consistent job evaluation factors, promoting fairness and accuracy across the agency. 

Job Class Identification 

The pay equity legislation requires employers to identify job classes in the workplace. Job classes are defined as groups of individual positions that have the following three characteristics:

• they have similar duties and responsibilities;
• they require similar qualifications; and,
• they are part of the same compensation plan and are within the same range of salary rates.

After ensuring the accuracy and reliability of the job evaluation data, Korn Ferry and HR created distinct job classes for SSHRC based on the three characteristics that define a job class, then identified which individual positions were to be assigned to the specific job classes.^{Footnote 5}

Table 1 below lists the 64 job classes identified for SSHRC. Appendix B provides a full list of each job class and the individual positions that fall within each class.

Gender Predominance 

SSHRC’s HR systems were used to extract gender predominance data for each identified job class by pulling relevant information from the organizational databases to inform the subsequent allocation process. As per the Act, the overall gender predominance for job classes was established based on the following criteria:

• current gender predominance of positions;
• historical gender predominance;^{Footnote 6}
• the stereotypical gender predominance.^{Footnote 7}

The extracted gender predominance data were reviewed and analyzed. Based on this analysis, Korn Ferry and HR finalized and allocated the gender predominance for each identified job class as outlined in the tables below. 

Female Predominant Job Classes

Table 2 lists the 53 female-predominant job classes and the number of individual positions in each job class, which sums to 217. For these job classes at least 60% of the positions in the job class are or were historically occupied by women.

Male Predominant Job Classes

Table 3 lists the nine male-predominant job classes and the number of individual positions in each job class, which sums to 26. For these job classes, at least 60% of the positions in the job class are or were historically occupied by men.

Gender Neutral Job Classes

Table 4 lists the two gender-neutral job classes and the number of individual positions in each job class, which sums to three.  These job classes are or were occupied by less than 60% men or less than 60% women (for example, 58% women and 42% men) and are thus considered gender neutral. 

7. Calculating Compensation

As part of work carried out by SSHRC’s HR team, described in section 6 above, the hourly compensation for all GR levels was calculated (using rates of pay effective April 1, 2020), then used to compare the male and female predominant job classes. By way of example, Admin 2 - Corp GR4 (female predominant) was compared to Officer 1 - Corp GR4 (male predominant).

8. Results from the Comparison of Compensation

The results of the analysis conducted by HR and the consultant group confirmed that the value of all positions, and all job classes, whether female- or male-predominant or gender-neutral, within the agency has been determined in a consistent and legislation-compliant manner. In addition to determining the gender predominance for each job class, the analysis has confirmed that there are no gender pay inequities as defined by the legislation and, therefore, no compensation is owed.

A brief diagrammatic overview of the steps undertaken in SSHRC’s response to pay equity legislation can be found in Appendix C.

9. Employee Feedback

SSHRC employees had 60 days from May 31, 2024, to provide comments on the report and the results of the analysis. The feedback received from employees resulted in no modifications to the report being necessary.

In the event of disagreements

If a pay equity committee developed the pay equity plan, as is the case for SSHRC, and the final pay equity plan has been posted, an employee may file a complaint only if they believe that the employer or the bargaining agent has acted in bad faith or in an arbitrary or discriminatory manner while performing their duties or functions. A complaint must be filed within 60 days after the day on which the employee became aware of the alleged behaviour.

Agreement

This Pay Equity Plan, and the information used to create this plan, are accurate to the best of my knowledge and belief. 

Signature of the employer or the person representing the employer: 

_____________________________          

Where a Pay Equity Committee created the pay equity plan, include signatures of all Pay equity Committee Members: 

Appendix A: Sample SSHRC Job Profile

A. POSITION INFORMATION

1. Job Identification

2. Job Summary  

3. Major Responsibilities

4. Working Environment

1. Know-How

Know-How is the sum total of every kind of knowledge and skill, however acquired, needed to perform the job’s major responsibilities, such as planning, organizing, integrating, coordinating, guiding, directing and/or controlling activities and resources associated with an organizational unit or function, in order to produce the results expected of that unit or function.

A) Technical, Professional and Operational Knowledge and Experience

B) Working Relationships

2. Problem Solving

Problem Solving is the amount and nature of the thinking required in the job in the form of analyzing, reasoning, evaluating, creating, using judgment, forming hypotheses, drawing inferences, arriving at conclusions and the like.  It takes into account two dimensions:  1) the environment in which the thinking takes place, i.e. the extent to which assistance or guidance is available from others or from past practice and precedents; and 2) the challenge of the thinking to be done, i.e. the novelty and complexity of the thinking required.

3. Accountability

Accountability is related to the opportunity that a job has to bring about some results and the importance of those results to the organization. Tied closely to the amount of opportunity is the degree to which the person in the job must answer for (is accountable for) the results.

Appendix B: Job Classes at SSHRC and their Respective Position Titles

Appendix C: The steps of SSHRC’s Response to Pay Equity Legislation

1. Gather and analyze employee and position data
   • List of positions
   • Job classifications and evaluation factors
   • Employee data, including self-identified gender of employees (including non-binary)
2. Create job classes and linked positions
   • similar duties and responsibilities
   • similar qualifications
   • same compensation plan and within the same range of salary rates
3. Established gender predominance for each job class
   • Current incumbency
   • Historical incumbency
   • Occupational stereotypes
4. Determine Value of Work
   • Skill
   • Problem solving
   • Responsibility
   • Working conditions
5. Calculate total hourly compensation for each job class
   • Maximum Base Hourly Rate
   • Hourly Value of Performance Pay
   • Total Hourly Compensation
6. Compensation Comparison
   • Comparison of compensation for female- and male-predominant job classes of equal value for the employer’s operations.
7. Results for SSHRC did not identify pay inequities.

Date modified:

2024-09-03