Canadian HR Reporter

CANADIAN HR REPORTER June 12, 2017 28 FEATURES Is pay equity "worth it"? Pay equity, along with equal pay for equal work, is a human right. Recognizing and complying with the law should be the norm, not the exception, as it represents an acknowledgement by busi- ness of the inherent societal value in correcting workplace gender discrimination. And it is evident the law is still required. For employees, it is cer- tainly worth it. In the past two years alone, employees in female-domi- nated job classes have received more than $10 million in compen- sation adjustments through the Pay Equity Office's efforts. Addressing gender equity at work makes good business sense. e pay equity process helps employers and employees under- stand the contributions made by all jobs at an organization, and helps identify other areas of po- tential bias that represent barri- ers to employee engagement and organizational productivity. Research shows workplaces that establish gender equity are more likely to have a competitive advantage in attracting highly skilled workers, reduce the cost of employee turnover and dem- onstrate better organizational and financial performance. In 2010, TD Economics found that retaining women workers and improving their economic outcomes is important for busi- nesses' competitiveness, as wom- en are a critical human resource for filling future labour shortages. Raising women's participation in paid work by just one per cent could add 115,000 workers to Canada's workforce. From a societal and consumer prospective, it makes good eco- nomic sense. e gender wage gap represents $18 billion of fore- gone income per year, according to 2016 analysis from Deloitte, representing about 2.5 per cent of Ontario's gross domestic product — the same contribution made by the motor vehicle and parts indus- tries combined. Human resource professionals are often involved in helping an employer understand the impor- tance of employee satisfaction, the components of employee satisfac- tion, and how employee satisfac- tion contributes to the bottom line. Ensuring equitable compen- sation practices, which are pay- equity compliant, certainly con- tributes to this engagement and, in turn, minimizes an employer's liability. Emanuela Heyninck is the commis- sioner of the Ontario Pay Equity Com- mission in Toronto. For more informa- tion about pay equity, gender wage gaps and the work of the Pay Equity Office, please visit www.payequity.gov. on.ca. Minimize liability PAY EQUITY < pg. 26 ere are many factors at play that threaten the sustainability of the drug benefit. And despite an aging workforce, increase in chronic diseases, and the high cost of drugs, the real issue is that up to one out of every three ben- efit plan dollars spent on mainte- nance medications does not nec- essarily improve employee health outcomes, according to research by ESC through retrospective analysis of claims. While this finding may be shocking, it is advantageous be- cause this high cost can be recap- tured through employee engage- ment. In fact, optimizing spend- ing on traditional maintenance drugs through pharmacy services that involve proactive discussions to influence better patient deci- sions can help fund access to new high-cost drugs, says Herbert. Analysis of claims data has shown that informed plan mem- bers make the choice not to use costly medications, and ask for the more affordable alternatives. ey also take their medications as prescribed, which leads to bet- ter health and eliminates the need for more expensive treatments. In the end, they pay less. "Both employers and employ- ees want great care at the best value, but navigating the complex world of pharmaceuticals without proper support is impeding plan members from making the right decisions," says Po. Benefits claims research, be- havioural science and clinical expertise can be used to identify trends, develop comprehensive plan management solutions for targeted intervention, and provide support at key decision points along the treatment journey. Employers may see between 10 to 15 per cent cost savings in drug expenditures when they take ad- vantage of more comprehensively managed plan controls. "Analyzing the data history for millions of Canadians and taking that data into account leads to more informed decisions, better health outcomes as well as a re- duction in plan spending," says Herbert. Plan management solutions After measuring the financial metrics of many employer-spon- sored benefit plans, ESC has de- termined traditional approaches to plan management don't work. "Having given up, this is when we see employers implementing spending caps that simply trans- fer costs to employees, and this can lead to terrible consequences, where employees don't take their medications because they can no longer afford them," says Herbert. Proven alternatives are avail- able, but employers need to take the necessary steps to introduce comprehensively managed plans that align drug use with clinical guidelines. Working with a company to empower employees to make more informed decisions, lever- age clinical expertise and data analytics and guide them by pro- viding solutions to achieve better health outcomes will help. It can reduce costs and mini- mize spending for employees and will contribute to cost savings for employers. "is approach allows employ- ers to save money on the drug benefit, while attracting the talent that will allow them to grow and be successful," says Herbert. Informed plan members avoid using costly medications, and ask for more affordable alternatives. Anthea Gomez is director of HR and corporate services at Express Scripts Canada in Mississauga, Ont., pro- vider of health benefits management services. For more information, visit www.express-scripts.ca. Leverage analytics BENEFITS < pg. 25 Informed members avoid using costly medications and ask for alternatives.

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