Establishing Strategic Pay Plans

11-16. Less-Discriminatory Explanations for Pay Disparity:

While the pay disparity between women and men at AstraZeneca is concerning, it's essential to explore potential
less-discriminatory explanations for the difference in earnings. Factors such as job tenure, education, experience, and
performance may contribute to pay discrepancies. Women might have entered the company at different times or had
varying levels of experience, which could affect their salaries. Additionally, differences in educational backgrounds or
performance evaluations could lead to variations in compensation. Conducting a thorough analysis of these factors
and considering any legitimate reasons for the pay disparity will help provide a more comprehensive understanding
of the situation.

11-17. Preventive Measures to Ensure Pay Equity:

To ensure that similar gender-based pay inequities do not arise in the future, AstraZeneca can take the following
measures:

 Regular Pay Equity Audits: Conduct periodic reviews of compensation data to identify any potential pay
disparities among genders. These audits can help detect discrepancies early and allow the company to take
corrective actions promptly.
 Transparent Compensation Policies: Establish clear and transparent compensation policies that explicitly
state how pay decisions are made. This can help prevent any ambiguity and ensure that employees
understand how their salaries are determined.
 Regular Training and Awareness Programs: Train managers and HR personnel on the importance of pay
equity and potential biases in compensation decisions. This can help ensure that decisions are based on
objective criteria rather than subjective factors.

11-18. Recommended Compensation Plan:

Considering AstraZeneca's situation and the goal of achieving pay equity, a compensation plan that promotes
transparency, fairness, and alignment with company objectives is recommended. A performance-based
compensation plan could be implemented, incorporating the following elements:

 Base Salary: Provide a competitive base salary that takes into account the job's responsibilities, required
skills, and market benchmarks. This would serve as a foundational component of compensation.
 Performance Bonuses: Offer performance-based bonuses that reward employees for achieving predefined
targets and goals. This can motivate sales associates to excel and contribute to the company's success.
 Equal Opportunities: Ensure that both men and women have equal opportunities to earn bonuses based on
their performance. Setting clear and measurable criteria for bonuses helps avoid biases and ensures fairness.
 Pay Equity Reviews: Conduct regular pay equity reviews to identify any gender-based disparities in bonuses
or other forms of compensation. Address any discrepancies promptly to maintain fair compensation
practices.
 Transparent Communication: Communicate the compensation structure clearly to all employees, outlining
how bonuses are determined and emphasizing the company's commitment to pay equity.
 Performance Evaluation: Implement a fair and standardized performance evaluation process that assesses
employees based on objective criteria, eliminating potential biases.