Gender pay gap reporting
The gender pay gap is the average difference between men and women's aggregate hourly pay.
Subject to the approval of Parliament, the regulations are likely to commence from April 2017, from which point employers will have up to 12 months to publish this information.
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- The gender pay gap is not the same as equal pay or pay discrimination.
- The regulations will apply to employers who employ 250 or more employees.
- Employers are required to publish the figures on the organisation's website and submit evidence of compliance annually to the Government.
- Employers will also need to calculate and publish three other types of figures:
- gender bonus gap
- proportion of men and women receiving a bonus
- proportion of men and women working at each quartile of the organisation's pay distribution.
What gets measured gets managed and what gets published gets managed even better. Employer transparency on the gender pay gap is about being in possession of the facts necessary to drive progress and get the most out of the whole workforce, including female talent. This can also help with a company's reputation with both existing and potential employees.
The gender pay gap differs from equal pay as it is concerned with the differences in the average pay between men and women over a period of time no matter what their role is. Equal pay deals with the pay differences between men and women who carry out the same or similar jobs. Organisations who have a higher level of men in senior jobs and women in junior roles are more likely to have a gender pay gap.
Publishing the gender pay report
Although there is no requirement for employers to support the figures with a narrative report, they would usually benefit from doing so. On an annual basis the employer will need to publish the report on their own website as well as submit evidence of compliance to the Government. Subject to the commencement of the legislation, organisations must publish their first report within 12 months from April 2017.
Employers will be required to keep their gender pay figures online for three years in order to show the progress made.
Addressing the gender pay gap
Organisations may wish to review and update policies to help address any gender pay gap, these policies include:
- equality and inclusion
- enhanced paternity leave and equalised shared parental leave entitlement
- bullying and harassment
- flexible working
- people development.
Employers should seek to understand and probe the drivers behind their organisation's gender pay gap where one exists to ensure any action taken will have the desired impact. It would also be good practice for employers to review how they pay people to ensure it is fair and non-discriminatory.
Employers may involve employees or their representatives in carrying out any review of policies.