Describe the company’s wage policy for its employees and/or suppliers. How many people is it affecting, where, and how much? When determining how many employees are impacted, consider their entire supply chain.
It is important to show the company’s average AND median salary in addition to the minimum wage AND living wage of the region.
If the impact is negative, to cover this topic to its fullest potential, you can explore the following:
- The CEO's wage ratio compared to its employees' average base salary, also known as the CEO-to-typical-worker Compensation Ratio.
- If a company is paying the living wage, assess whether it is also increasing the wages of the lowest-paid.
- Whether the wage disparity is increasing because of cash incentives and/or bonus schemes between different management levels.
- Compensation discrimination can briefly be touched upon in terms of gender and ethnic pay gaps.
If the impact is positive, to cover this topic to its fullest potential, you can explore the following:
- Address whether the company is paying fair wages and providing overtime pay.
- Does the financial compensation reach or exceed the living wage of the region the company is in?
- Does the company have minimum wage policies and provision of benefits?
- A company's contribution to prosperity can be captured by assessing how a workforce is attracted, retained, and motivated.
Ensure all of this data is parallel (salary per hour, month, or year) and in $USD or €EUR. You may read this article to understand the difference between reporting median and average.
Describe the scale of the impact by taking into account:
1/ The breadth of the impact
Is the impact local, national, or global?
How many people are concerned? Thousands? Hundreds of thousands?
2/ The depth of the impact
Is the life of people concerned deeply affected, or does the issue just marginally impact them?
Are the changes brought by the issue profoundly changing society?
3/ The persistence of the impact
Use the logical model to discuss the company’s output, outcome, and impact. You may use studies as proxies to report the impact.