Is the gender pay gap about to close?
Are we finally going to see equal pay between men and women?
The Government is starting to take action on gender pay inequalities in the workplace by making it mandatory for larger companies to provide information regarding wages.
New regulations, that will affect around 8,000 employers throughout the UK, aim to eliminate the differences in pay by recognising where unequal pay exists. Despite the Equality Pay Act being introduced in 1970, recent statistics suggest that women are still receiving less pay than their male counterparts, with women in the UK earning an average of 20% less than men. TUC state that the divide increases amongst Britain’s top earners, which has a gap of 55%!
With the Prime Minister pledging to end the gender pay gap within a generation, mandatory reporting could be the first step towards equal pay.
Mandatory reporting
Reporting on pay will become mandatory for some businesses under the Equality Act (Gender Pay Gap Information) Regulations 2016, which will come into effect in October 2016.
Businesses with over 250 relevant employees, i.e. those who regularly work in Great Britain and whose employment contract is governed by UK legislation, will have to publish the following data on their websites for public viewing:
- The difference in mean pay of male and female employees
- The difference in median pay of male and female employees
- Difference in average bonus split by gender
- Number of bonus-receiving employees split into genders
- Number of men and women employed in each quarter of pay
Information must be kept on an employer’s website for a minimum of three years to show what progress has been made. It must also be added to a Government sponsored website, so figures can be published in a league table.
Official reporting will begin on 30th April 2017. However, employees will have 12 months to compile a report, with the first report being published by 30th April 2018.
While there are currently no enforcement measures in place, a review will happen after the scheme has been running for two years.
How equal pay benefits a business
There are numerous benefits of paying men and women equally. Complying with the law can lead to a happier, more productive workplace, as every member of the team understands they are valued and paid based on their role rather than their gender.
Providing equal pay can also reduce the potential of tribunals and grievance procedures, and means a business won’t face financial penalties because of wage discrepancies in a workplace. Currently, those who lose equal pay claims can end up having to conduct an equal pay audit and publish the results.
Equal pay also minimises the risk of a PR disaster! Failing to pay an equal wage to all employees could mean you receive some bad press that loses you customers and clients.
How your business can prepare for mandatory reporting
Though not yet legislation, there are ways your business can prepare for mandatory reporting and ensure that they are paying a gender equal wage throughout their company. A review of all current wages, salary, and bonus schemes could highlight any roles where people aren’t being paid equally and areas that require improvement.
Want to talk about equal pay and your business? Get in touch with a member of our team on 01454 808 658 or email us at hello@wearepes.co.uk.
