NORA LANG: PAY EQUITY AT FTS
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
In August 2018, recent graduate Nora Lang was excited about starting her dream job at global financial
consulting firm Financial Technology Services (FTS),2 headquartered in the United Kingdom. However,
on her first day, she learned from discussions with co-workers that newly hired women (including herself)
were offered lower salaries than men who were newly hired for the same positions. She later learned, in an
n
onboarding session, that the company had a strict policy prohibiting pay discussions among employees.
Lang faced a difficult decision in considering what to do next: What were her responsibilities and options?
tio
How could she expect the human resources (HR) department to respond? Could her choices possibly put
lu
So
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
e
1. What does the pay differential suggest about the general environment at Financial Technology Services
(FTS)? Do you think that the pay differential is the only inequality in FTS? Do you think women are
pl
the only disadvantaged group in this organization?
2. What are the human resources (HR) department’s responsibilities in this situation? Whose interests
m
does HR have a duty to protect?
3. What should Lang do? What are her responsibilities? How will HR respond to her choice?
Sa
4. Does FTS’s status as a global firm affect how Lang should approach the situation?
n
tio
lu
So
The Case Solution Starts From page 5
,ANALYSIS
1. What does the pay differential suggest about the general environment at Financial Technology
Services (FTS)? Do you think that the pay differential is the only inequality in FTS? Do you think
women are the only disadvantaged group in this organization?
Organizations that do not actively monitor and protect equality are likely to experience widespread
inequities. In responding to this question, students are likely to focus particularly on gender inequality,
which is emphasized in the case and almost certainly exists beyond starting pay differences at FTS. It may
be helpful to acknowledge some other likely gender inequities. For instance, if the company tolerates pay
differences for people in identical roles, how will it make decisions regarding promotions or important
client assignments, which become the basis for later promotions? Toleration of inequality that affects any
group can easily lead to discrimination against others.
The case highlights an inequality that existed prior to the first day of work between male and female co-workers
e
in identical roles. Aside from concerns that women are likely to be overlooked or systematically disadvantaged
in other ways (e.g., with regard to assignments and promotions), the pervasiveness of the pay gap among the
pl
present cohort of new hires suggests that FTS encourages inequality. There are several problematic
consequences of this, including most obviously the likelihood that inequalities affect other groups.
m
One of the illuminating aspects of the case is that it deals with inequities that exist as of the first day of
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT TN-1: LANG’S RESPONSIBILITIES
Perceived Responsibilities How to Observe Responsibility
To Herself
• to maintain her values and integrity • Inform HR and her colleagues.
X% • to earn a paycheque/keep a job - This is complex: How receptive is FTS?
• to protect her reputation Have others been fired? How do others
feel?
To Her Friends
• to protect their identities (because • This is complex: How receptive is FTS?
X%
they were complicit in the
discussion about salaries)
X%
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
In August 2018, recent graduate Nora Lang was excited about starting her dream job at global financial
consulting firm Financial Technology Services (FTS),2 headquartered in the United Kingdom. However,
on her first day, she learned from discussions with co-workers that newly hired women (including herself)
were offered lower salaries than men who were newly hired for the same positions. She later learned, in an
n
onboarding session, that the company had a strict policy prohibiting pay discussions among employees.
Lang faced a difficult decision in considering what to do next: What were her responsibilities and options?
tio
How could she expect the human resources (HR) department to respond? Could her choices possibly put
lu
So
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
e
1. What does the pay differential suggest about the general environment at Financial Technology Services
(FTS)? Do you think that the pay differential is the only inequality in FTS? Do you think women are
pl
the only disadvantaged group in this organization?
2. What are the human resources (HR) department’s responsibilities in this situation? Whose interests
m
does HR have a duty to protect?
3. What should Lang do? What are her responsibilities? How will HR respond to her choice?
Sa
4. Does FTS’s status as a global firm affect how Lang should approach the situation?
n
tio
lu
So
The Case Solution Starts From page 5
,ANALYSIS
1. What does the pay differential suggest about the general environment at Financial Technology
Services (FTS)? Do you think that the pay differential is the only inequality in FTS? Do you think
women are the only disadvantaged group in this organization?
Organizations that do not actively monitor and protect equality are likely to experience widespread
inequities. In responding to this question, students are likely to focus particularly on gender inequality,
which is emphasized in the case and almost certainly exists beyond starting pay differences at FTS. It may
be helpful to acknowledge some other likely gender inequities. For instance, if the company tolerates pay
differences for people in identical roles, how will it make decisions regarding promotions or important
client assignments, which become the basis for later promotions? Toleration of inequality that affects any
group can easily lead to discrimination against others.
The case highlights an inequality that existed prior to the first day of work between male and female co-workers
e
in identical roles. Aside from concerns that women are likely to be overlooked or systematically disadvantaged
in other ways (e.g., with regard to assignments and promotions), the pervasiveness of the pay gap among the
pl
present cohort of new hires suggests that FTS encourages inequality. There are several problematic
consequences of this, including most obviously the likelihood that inequalities affect other groups.
m
One of the illuminating aspects of the case is that it deals with inequities that exist as of the first day of
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT TN-1: LANG’S RESPONSIBILITIES
Perceived Responsibilities How to Observe Responsibility
To Herself
• to maintain her values and integrity • Inform HR and her colleagues.
X% • to earn a paycheque/keep a job - This is complex: How receptive is FTS?
• to protect her reputation Have others been fired? How do others
feel?
To Her Friends
• to protect their identities (because • This is complex: How receptive is FTS?
X%
they were complicit in the
discussion about salaries)
X%
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
