Since 2017, if you are an employer who has a headcount of 250 or more, you must comply with gender pay gap regulations.
- Public authority employers must publish their gender pay gap information by 30 March 2022, with calculations being based on employer payroll data drawn from 31 March 2021.
- Private, voluntary and all other public authority employees must publish their gender pay gap information by 4 April 2022, calculations are based on employer payroll data drawn from 5 April 2021. These employers must also include a written statement.
Failure to report or reporting inaccurate data is unlawful and the Equality and Human Rights Commission has the power to enforce court orders and fines and also organisations are likely to experience reputational damage.
Employers can choose to, but do not have to, provide an explanatory narrative accompanying their gender pay gap report. This can help to explain the reasons why there is a gap.
Given that a 2018 Glassdoor survey found that 63% of respondents would not apply to a company where there is a pay gap between men and women for similar work, employers are realising that not taking substantive steps to reduce their pay gaps, will affect their ability to recruit and retain best staff.
According to the Government Equalities Office, the most common and effective steps to reduce gender pay gap are:
- including multiple (not just one) women in shortlists for recruitment and promotions. Where only one woman is included in shortlists, the chance of a woman being selected does not increase
- skills-based assessments in recruitment and structured interviews, each of which works to combat unconscious bias
- encourage salary negotiation by showing salary ranges and not asking for salary information as part of the process
- increasing transparency of promotion, pay and reward processes
- appointing diversity managers.
Centric HR can advise and support you on reporting your gender pay gap and producing an appropriate accurate written statement. We can also help employers to diagnose their gender pay gap and develop action plans that highlight how you intend to tackle differentials in pay across genders. Please contact us here for more details on Gender Pay Gap Reporting and any other