Why is this important?
In the current cost-of-living crisis, pay transparency and equity are at the forefront of public and regulatory interest; employers are also increasingly in the public eye to evidence commitment to reducing their respective Gender Pay Gaps. If relevant employers fail to report their Gender Pay Gap information on time or report inaccurate data, the Equality and Human Rights Commission (EHRC) can take enforcement actions, which can lead to court orders and heavy fines.
Gender Pay Gap reporting is far more than a regulatory obligation. It can be a catalyst for positive change within organisations, regardless of the requirement to publish their Gender Pay Gap information. It’s seen as a testament to employers’ commitment to fostering workplace equality and creating a work culture with equity at its core. Having a robust action plan in place to reduce the Gender Pay Gap also positively influences the employer brand, enhances employee engagement, and makes employers more attractive for prospective candidates.
Many employers are also focusing on longer term goals to ensure their Gender Pay Gap is continuously reduced. Gender Pay Gap data and analysis can and should be the foundation on which measures to decrease the Gender Pay Gap are developed. By overlaying additional information on the organisational structure and reward data with pay data, a detailed Gender Pay Gap report can help to uncover the causes of the gender pay disparities, such as unveiling departmental contributions and understanding the impact of unequal distribution of family responsibilities. It can illuminate factors which help maintain a ‘glass ceiling’, i.e., preventing women from progressing into the most senior roles of organisations and help to identify structural drivers of occupational segregation.