Policy hub
and infrastructure. The 2018 review found that just 11% of employees reported that their organisation collects data on the ethnicity pay gap ratio. In particular, those in small organisations are much less likely to report that their organisation collects data on the ethnicity pay gap ratio – just 8% do. Of those who work in an organisation that collects data on the ethnicity pay gap, 50% reported that their organisation publishes the data collected. As only a small number of employers had chosen to publish ethnicity pay data voluntarily, in October 2018 the government published – alongside a Race in the Workplace Charter – a consultation (http://bit.ly/2EJHjvF) on ethnicity pay asking how a new mandatory reporting requirement should operate. The government invited views on mirroring some or all elements of the gender pay gap regulations such as proposing the same threshold of 250 employees or above, not fifty or above as recommended in the 2017 review. The CIPP surveyed members to help inform our response. From an administrative burden perspective comparability with the methodology applied for gender pay gap would be preferred by our members. However, our members are pragmatic and recognise that this will not achieve the same results because of the different challenges presented by ethnicity classifications. Our key conclusions and recommendations in our response (http://bit.ly/2WeT87M) are as follows: ● ● There must be value achieved through the efforts of the software developers, payroll and HR (human resources) professionals and so we recognise different methodology will be required. ● ● If government consider that the time is right to deliver another reporting obligation on employers, in the name of transparency, then significant time and structured planning will be needed. Rushed delivery will not achieve accurate outcomes. ● ● Lessons need to be learned from the roll-out of gender pay gap reporting with government engaging in greater detail
with all affected stakeholders as they continue to consult. ● ● Employers’ pay processes vary enormously in size and complexity. The added challenges for gathering accurate ethnicity data as identified within the consultation paper will add further layers of complexity. In advance of any mandatory obligation we asked payroll professionals, businesses and employers through a website poll earlier this year, if their business is planning to report its ethnicity pay gap voluntarily and gave the options for large and small employers as the consultation suggests government may follow the 250+ rule. We received 347 responses: ● ● 13% of respondents with 250 or more employees said they would be reporting voluntarily within the next twelve months, with 2% in this category saying they would report in the next two years ● ● 21% of large employers said they would not be reporting voluntarily in the next twelve months or two years. Unsurprisingly, no one from the ‘less- than-250-employees’ bracket went for the option to say they would be reporting voluntarily; and when directly asked if they would not be reporting, 37% said they would not. The remaining 37% of respondents were unsure or didn’t know what their company is planning. Next steps At the time of writing, the jury is still out on what mandatory reporting may come into force as the government is still considering the responses to its consultation. We said at the time of submitting our response that we see this consultation as the start of a conversation and not the end of it – let us hope this observation is taken on board. How you can become involved in consultation ● ● Surveys – We know it must feel like we bombard you with surveys sometimes, but there really is strength in numbers. When we submit a
consultation response, we don’t say what we in the policy team think, we say what our members and the wider payroll profession tell us. The more respondents tell us, the more credible our argument is, and the bigger the impact it may have. So please do spare time if you can to complete as many of our surveys as applicable – it is your opportunity to help influence and shape the polices that effect what you do every day in your profession. ● ● Policy Think Tanks – These roundtable events are a benefit for full, fellow and Chartered members. They are meetings limited to around twenty people and are usually attended by policy leaders from the relevant government department who are interested in exploring issues with those who actually have to put the policies into practice. The Think Tanks are a chance for HMRC, the Department for Work and Pensions, the Department for Business, Energy and Industrial Strategy, HM Treasury, the Low Pay Commission and others to explore issues and understand the impact various policies or proposed policy changes can and may have on those who work in the industry. Members can and do influence government thinking, and there is a real opportunity to affect change going forward through these meetings. ● ● Consultation forums – A consultation forum is a meeting held usually every three months or so which allows the attendees to discuss issues arising in a specific arena. For example, HMRC holds quarterly forums for statutory payments, student loans, issues affecting agents, IR35 and all things off-payroll, and another covering all payroll topics: the Employment and Payroll Group. The forums are attended by key stakeholders such as the CIPP policy team and we bring issues to the table to be discussed, just as much as HMRC bring issues they want to explore. Are there any issues you would like us to take up on your behalf? We welcome your discussion points, but just a health warning: individual cases aren't discussed; but issues that could have a wider impact on the payroll profession as a whole, or on particular sections or segments are discussed. Questions, comments, issues – please email us at policy@cipp.org.uk . n
...influence government thinking, and there is a real opportunity to affect change going forward...
7
| Professional in Payroll, Pensions and Reward |
Issue 52 | July/August 2019
Made with FlippingBook - Online magazine maker