Investigating Pay Gap Impact on Employee Performance at L'Oreal

This research project investigates the perceptions of employees regarding the pay gap and its impact on employee performance within L'Oreal. The project utilizes a questionnaire to gather data on employee awareness of the pay gap, satisfaction with company policies, and the perceived impact of pay disparities on productivity, communication, and employee engagement. The findings indicate a general awareness of the pay gap concept among the respondents, with a majority agreeing that pay gap and discrimination affect employee performance. The research further explores the strategies employed by L'Oreal to address the pay gap, including transparency, communication, and employee engagement initiatives. The analysis includes statistical representations of the survey data, interpretations of the findings, and references to supporting literature. The research reveals insights into the effectiveness of L'Oreal's policies and strategies in mitigating the effects of pay gap and fostering a positive work environment. The project concludes by analyzing the need for improved communication strategies, employee engagement and more effective policies regarding pay gap.

Research Project

Questionnaire
Name:
Age:
Gender:
1. Are you aware with the concept of pay gap ?
 Strongly agreed
 Agree
 Neutral
 Disagreed
 Strongly disagree
2. Do you think that pay gap and discrimination affect the employee performance?
 Strongly agreed
 Agree
 Neutral
 Disagreed
 Strongly disagree
3. Which of the following is consider the biggest impact upon employee performance due to pay
gap?
 Low productivity
 Clashes between employees
 Barriers in the communication
 All of these
4. Has the company published gender- segregated pay information?
 Strongly agreed
 Agree
 Neutral
 Disagreed

 Strongly disagree
5. Are you completely satisfied with the company’s policies rrelated to discrimination?
 Strongly agreed
 Agree
 Neutral
 Disagreed
 Strongly disagree
6. Which of the following strategy company uses in order to motivate the employee?
 Effective training and development session
 Conduct weekly one-to one meeting
 Provide bonus
 All of these
7. Do you think that company develop policies and strategies for employee engagement?
 Strongly agreed
 Agree
 Neutral
 Disagreed
 Strongly disagree
8. Which of the following strategy did company use to reduce pay gap on employees?
 Maintaining transparency
 Develop best communication strategy
 Eliminate negotiation
 All of these
9. Recommend the best way through which the company may develop policies with regards to ay
gap.

Theme 1: Majority of manager know the meaning of Pay gap
Particulars Respondents
Strongly agreed 11
Agree 5
Neutral 2
Disagreed 1
Strongly disagree 1
Strongly
agreed Agree Neutral Disagreed Strongly
disagree
0
1
2
3
4
5
6
7
8
9
2
6
9
1 1
Respondents
Respondents
Interpretation: In accordance with the above graph, it is analyzed that majority of the
respondents are completely agree that they know the concept of pay gap such that out of 20,
employees 11, are strongly agree with this, while, 5 are agree. Only 2 of them are did not know
about this, therefore, it is stated by…that it is a difference amount between pay to the employees
who are working at the same level.
Theme 2: Majority of the sample state that pay gap and discrimination affect employee
performance.
Particulars Respondents
Strongly agreed 10
Agree 6

Neutral 2
Disagreed 1
Strongly disagree 1
Strongly
agreed Agree Neutral Disagreed Strongly
disagree
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2 6 9 1 1
Respondents
Respondents
Interpretation: Through primary research, it is interpreted that majority of manager of L’Oreal
are strongly agree that pay gap and discrimination the performance of employee. Such that out
of 20, 11 stated that they are completely agree, while 5 of them are agree and 1 of them are
strongly disagree. Therefore, it is also examine by Lytton (2020) that if the company did not
have positive working environment then it affect the overall performance of employees which in
turn affect the overall productivity as well as financial performance of company.
Theme 3: Respondents state that company affect the employee performance due to gender
pay gap
Particulars Respondent
s
Low productivity 2
Clashes between employees 3
Barriers in the communication 4

All of these 11
Low productivity
Clashes between employees
Barriers in the communication
All of these
0
4
8
12
2 3 4
11
Respondents
Respondents
Interpretation: Through the above graph and table, it is interpreted that if company did not pay
equal amount to employees, then it creates adverse impact upon firm performance. Such that
majority of respondents are highly agree that there are many negative responses which company
faces like, state that low productivity is biggest cause, while 3 state that it leads to clashes
between employees and 4 of them state that barrier in communication is biggest cause. Among
all, respondents are state that these all are the negative impact that affect the company and its
financial performance as well.
Theme 4: Respondents are highly agree that company published gender- segregated pay
information
Particulars Respondents
Strongly agreed 11
Agree 5
Neutral 2
Disagreed 1
Strongly disagree 1

2
6
9
1 1
Respondents
Strongly agreed
Agree
Neutral
Disagreed
Strongly disagree
Interpretation: From the above research, it can be stated that range of samples are highly agreed
that company published gender- segregated pay information to employees such that 11 of them
are highly satisfied, while 5 of them are agree. Only 2 of them did not say anything, this is
further supported by Chan and et.al., (2020) company keep trying to develop those policies
which in turn help to make employee aware with new pay information so that they can take
action accordingly.
Theme 5: Majority of employees are satisfied with the company’s policies related to
discrimination
Particulars Respondents
Strongly agreed 10
Agree 6
Neutral 2
Disagreed 1
Strongly disagree 1

2
6
9
1 1
Respondents
Strongly agreed
Agree
Neutral
Disagreed
Strongly disagree
Interpretation: In accordance with the above table, it can be stated that most of the employees
are highly satisfied with the company’s policies related to discrimination. Such that 10 of them
are highly satisfied, while, 6 of them are agree and 2 of them are did not know anything . In
order to support the same, it is also examine by McElhaney and Smith (2017) that company
comply with Anti- discrimination law in which it cannot discriminate the people on any basis
such that caste, religion and gender. Thus, manager of L’Oreal are completely agree that
company keep working on these in order to manage the work.
Theme 6: L’Oreal uses range of strategy to motivate their employees.
Particulars Respondent
s
Effective training and development session 2
Conduct weekly one-to one meeting 3
Provide bonus 4
All of these 11

0
4
8
12
2 3 4
11
Respondents
Respondents
Interpretation: In accordance with the graph, it is interpreted that majority of employees are
agree that company have many strategies in order to support their employees. Such that 2 of
them, state that it have effective training and development session, while 3 of them state that
company’s keep conduct weekly meetings, 4 of them state that it provide incentive and bonus
schemes. But around 11 state that company keep working on these strategies in order to support
their employees and increases their overall working performance too.
Theme 7: Managers did not have any information related to employee engagement strategy
Particulars
Respondents
Strongly agreed 2
Agree 6
Neutral 9
Disagreed 1
Strongly disagree 1

Strongly
agreed Agree Neutral Disagreed Strongly
disagree
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2 6 9 1 1
Respondents
Respondents
Interpretation: Through the primary research, it is stated that most of the employees do not
know the employee engagement strategy of L’Oreal because out of 20, 9 state that they did not
know, while 2 of them are strongly agreed, and 6 of them are agree with the statement. On the
other hand, 1 of them are strongly disagree and 1 are disagree. Thus, it clearly analyzed that
company did not let their employees know about the overall employee engagement strategies,
but it actually working on this (Bussin and Christos, 2019).
Theme 8: Company uses many strategy to reduce the pay gap on employees
Particulars Respondents
Maintaining transparency 3
Develop best communication strategy 4
Eliminate negotiation 2
All of these 11

3
4
2
11
Respondents
Maintaining transparency
Develop best
communication strategy
Eliminate negotiation
All of these
Interpretation: It is also analyzed that

REFERENCES
Books and Journals
Lytton, S.T., 2020. Gender pay gap in general practice: be careful what you wish for. BMJ, 368.
Chan, H. L. and et.al., 2020. CEO-employee pay gap and firm R&D efficiency. Review of
Accounting and Finance.
McElhaney, K. and Smith, G., 2017. Eliminating the Pay Gap: An Exploration of Gender
Equality, Equal Pay, and A Company that Is Leading the Way.
Bussin, M. and Christos, D., 2019. Structured management practices: a curse or a cure for the
pay gap?. HR Future, 2019(Jun 2019), pp.38-39.