Twin Oaks Case Study Twin Case Study

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Comparable worth, also known as pay equity, is "a reform effort to pay different job titles the same based on their value to their employer regardless of the gender predominance of those working in such titles" ("What is Pay"). The motivation behind this reform is the inequity found between women's salaries and men's salaries. The process takes the somewhat subjective process of establishing compensation rates and transforms it into an objective, quantitative process. However, as Charles Cooper explained, there are several challenges to this process, the primary one being the destruction of free market forces in the process. As a private, for-profit hospital, Twin Oaks must not only watch their bottom line, but also remain competitive in the marketplace.

Tentative Solution:

The tentative solution Twin Oaks should consider is giving the five percent pay raise, but not agree to the comparable worth analysis or any other pay increase.

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Clearly, the amount Twin Oaks is currently paying their nurses and secretaries is fair market value for the Lexington area. Giving a five percent pay raise will make the Twin Oaks employees salary higher than average for the area. To implement this strategy, the administration should sit down with both groups and explain to them that this pay increase now puts them ahead of employees at the other hospital in Lexington. This will likely still have the employees paid less than Denver area hospitals; however, the administration should remind the nursing and secretarial staff that the cost of living in Denver is significantly higher than Lexington, and commuting the 100 miles to Denver really isn't a feasible option.

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