Equal Employment Opportunity Regulation and Change in Compensation Practices

The effects of Equal Employment Opportunity (EEO) regulation on the compensation practices of one organization were examined over 3 years. EEO regulation and top management policy directives had little impact in reducing salary inequities of female and minority employees who were employed at the time of the policy change; newcomers experienced moderate benefit. The response of the organization suggests concerns about the effectiveness of regulatory intervention designed to alter intra-organizational processes.