Following research from the government’s Women and Equalities committee, gender pay gap reporting will begin in October 2016.
The Equal Pay Act became law in 1970, but visibility of salaries based on gender will only be published following data capture starting this October. During a review of The Equal Pay Act, the Women and Equalities committee found that there was a ‘lack of effective policy to reduce the gender pay gap’, which resulted in an average 10% disparity between salaries for men and women in the same role with the same experience.
What does this mean for your business?
There is still some time before the legislation comes into effect, but The Equality Act (Gender Pay Gap Information) Regulations 2016 could result in additional work for finance and accounting teams, and internal reviews of employee pay structures.
The legislation comes into force in October, with salary data tracked for a year before the results are published in April 2018. Currently, the legislation only requires businesses with over 250 employees to report on their salaries, but this could change to include all businesses in the future.
As this will be the first time salary data based on gender will be published, it is likely it will garner large amounts of media attention. League tables of the worst performers could be published either by the government or watchdogs, which of course could be damaging to your brand and your competitiveness in the jobs market.
Key dates to remember
There is still over a year until the first results will be published, but businesses will have to start tracking salaries well before that date. Here are some key dates regarding the new legislation:
1st May 2016: Begin collecting data. As bonus pay data includes payments from the year up to 30 April 2017, you may need to collect figures on bonus payments from as early as 1 May 2016.
1st October 2016: Regulations to come into force. Businesses must start to track salaries from this date.
30th April 2018: First full gender pay gap statistics to be published by qualifying businesses with 250+ employees on this date.
Annually: Employers must publish gender pay gap statistics every 12 months.
Steps to protect your business’s reputation
Whilst the reporting is put into place, it might be time to look into how the data could potentially affect your reputation.
- Work with teams (HR, finance etc) to gather information regarding salaries and bonuses.
- Brief leadership on the legislation and their personal responsibility, as they will sign off the report.
- Run a draft report before the due date, to prepare yourself and your business.
- Review any gender pay gaps, and where they arise.
- Be proactive in publishing your report.
- Address issues causing gender pay gaps, and implement change.
- Ensure all staff have access to management and leadership training.
- Review your ‘return to work’ scheme to encourage more new mothers back into work.
- Review organisational culture so that one gender isn’t concentrated in certain roles, or management levels.
Read more on this, here.
Salary Survey 2016
Each year Anne Corder Recruitment, in association with Paydata, review salaries of businesses across Greater Peterborough. The survey, now in its 20th year, reviews salaries of participating businesses and can be a useful tool for HR departments across the city.
The results of the salary survey help businesses to gain real insight into salaries across the region, making it easier to offer competitive remuneration packages to job seekers, as well as increase retention of current staff.