REWARD INSIGHT
Samantha Mann MAAT, MCIPPDip, CIPP senior policy and research officer, brings us up to date and questions whether the glass ceiling will be broken Gender pay gap reporting
I f you are a private or voluntary sector employer with 250 employees or more in Great Britain (GB), you must publish your gender pay gap data every year. This obligation – previously voluntary – became mandatory for private and voluntary sector employers from April 2017. In 2009, research was carried out by the Equal Pay Commission in response to a request from government to report annually on the progress made towards gender pay transparency and to advise on what the trigger might be to activate clause 78 of the Equality Bill which aimed to simplify and strengthen equality legislation. This clause was inserted to enable a future government to require mandatory reporting of gender pay gaps in the event that too few employers in the private and voluntary sector did so voluntarily. Research findings highlighted that a main reason for employers not feeling it necessary for further public reporting of their gender pay gap was because the majority already had (or planned to have) processes in place to conduct some sort of internal pay gap analysis. Of the employers who had no such plans, the most common reason for not measuring their gender pay gap formally was that it was unnecessary because they considered that they already provided equal pay. Such confidence wasn’t the sole reason provided, as 26% of employers responded that their reason for not
carrying out such a review was down to a lack of time and/or resources. What became clear back in 2009 was that achieving widespread voluntary reporting amongst this cohort of employers would be a challenge and in all likelihood would only happen as a result of employee pressure or – more likely – making it a mandatory requirement. Interestingly, research made clear that “The majority of employers considered that they would also require guidance on how to report gender pay gap clearly”. ...achieving widespread voluntary reporting amongst this cohort of employers would be a challenge... approach that was launched to encourage businesses to think about gender equality and to not only take steps to promote equality in their workplace but also to share their progress publicly. Though open to any organisation it is aimed in particular at medium to large private and voluntary sector organisations. It is supported by a cohort of approximately 300 large businesses that have committed to think ‘Think, Act, Report’ (http://bit. ly/2owjJIH) is a flexible voluntary
about and act to achieve a reduction in gender pay gap (if needed) within their organisations. In November 2014, the Office for National Statistics (ONS) announced report results showing that the pay gap had reduced by 0.7 percentage points over a year to 19.1% and, for those aged under forty and in full-time work, the gender pay gap had reduced to almost zero. This news was welcomed by government but it also demonstrated that, whilst on a downward trend, the gender pay gap reduction was stagnating and so further action would be needed if the glass ceiling could be consistently breached by working women in the UK. Shortly after the 2015 Budget, a consultation – Closing the gender pay gap (http://bit.ly/1HsCZZN) – was launched. The consultation was the first of several that sought to deliver the proposals put forward by the Government Equalities Office (GEO) and to gather views and evidence that would work towards developing accurate guidance on calculating and reporting employer’s gender pay gap statistics. The measures, if successful, would, as the Prime Minister of the day had pledged, “end the gender pay gap in a generation”. What we knew when consultation began back in 2015, and as research had shown in 2009, was that critical to the delivery would be the provision of clear, concise and accurate guidance delivered
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 28
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