Gender Pay Gap Reporting: All you need to know
The gender pay gap has been a hot topic for years, dominating discussion in the media and in boardrooms. Seemingly refusing to close, the gap stood at 9.4% in 2016, down from 17.4% in 1997. While the UK is getting nearer and nearer to gender parity in pay, figures suggest it still has a long way to go…
A report from Deloitte claims that, at the rate the pay gap is moving, it won’t close fully until 2069.
In a bid to close this gap, the government now requires companies with over 250 employees to collect and publish data on the gender pay gap, gender bonus gap and a breakdown of how many women and men get a bonus. The aim is to publish the names of companies which are failing to achieve gender parity.
Our latest webinar discussed this topic in-depth, playing host to Chris Charman, Principal at human resources specialists Mercer and an expert on how the gender pay gap operates. Part 2 of our webinar, in conjunction with Mercer, took place on 22nd June at and looked at the solutions avilable to help with the reporting and analysis of gender pay gap.
During one hour of discussion, Chris explained a number of interesting facts about how the gender pay gap works, what kind of companies will have to comply with the latest government legislation, and how your company can do its bit to improve its payroll for men and women.
Here are three points to help you understand the gender pay gap that little bit more:
1. Don’t confuse gender pay gap and equal pay
Most people conflate the terms ‘gender pay gap’ and ‘equal pay’ – but the two are very different.
While the gender pay gap is calculated by figuring out the total hourly pay for men versus women for a whole organisation during one pay period (a month, for example), equal pay concerns how much men are paid compared to women on a like for like basis.
So, while the gender pay gap can give you a better look at your workforce’s profile, female career progression and occupational segregation, equal pay will tell you if you’re paying your male and female employees the same amount for the same work.
2. When and how to report
If your company has more than 250 employees, you’ll have to publish a report within 12 months of the ‘snapshot’ date of the 5th April each year.
This report must be readily available on your website for at least three years after the date of publication, in English, and must be accessible to all your employees and the public. The report itself will also require a statement from you, the employer, confirming its accuracy, and will have to be published on a ‘website designated by the Secretary of State’.
3. Better deals needed for women in senior positions
More women than men are hired at a senior level, but statistically more are leaving companies. Your business has to figure out why. Are you offering fair deals for childcare? Are you family friendly? Is the culture of your business putting women off working for you?
These are just a few questions you’ll have to ask yourself if you want to make sure you’re catering to your male and female workforce equally.
Gener Pay Gap Reporting: Solution
- Read part 2 of our blog on: 3 ways effective HR solutions could help
To find out how we can help you with gender pay gap legislation, get in touch with us >>