The Gender Pay Information Act mandates that both private and public sector employers follow new requirements for reporting on their gender pay gap. If your organisation employs more than 250 people, you should have already selected a ‘snapshot’ date in June to report on your employees’ remuneration for the 12-month period preceding that date. You now have six months from that date to calculate your organisation’s gender pay gap and publish the gender pay gap report to your website.
Because the gender pay gap is the difference in the average hourly wage between men and women across the workforce, it does not indicate discrimination or unequal pay; rather, it is an assessment of a gender representation gap within an organisation.
While currently any employer with more than 250 employees must report on its gender pay gap, next year the regulation will extend to those employers with 150 or more employees.
What to Include in the Gender Pay Gap Report?
The Gender Pay Information Act requires that companies report a variety of remuneration data. These reporting requirements include:
- Mean hourly remuneration gap
- Median hourly remuneration gap
- Mean bonus remuneration gap
- Median bonus remuneration gap
- Mean hourly remuneration gap of part-time employees
- Median hourly remuneration gap of part-time employees
- Mean hourly remuneration gap of temporary contract employees
- Median hourly remuneration gap of temporary contract employees
- The percentage of male employees who were paid bonus remuneration
- The percentage of female employees who were paid bonus remuneration
- The percentage of male employees who received benefits-in-kind
- The percentage of female employees who received benefits-in-kind
Organisations must also divide remuneration into four quartiles—lower remuneration quartile pay band, lower-middle remuneration quartile pay band, upper-middle remuneration quartile pay band and upper remuneration quartile pay band—and report on the percentage of males and females that fall into each band.
Tips for Successful Gender Pay Gap Reporting
Employers should ask themselves the following questions in preparation of the gender pay gap report within their organisation:
The first step in collecting the correct data for the report is to understand the reporting requirements.
Data collection can be challenging, and employers need to make sure that the data collected for the reporting period is accurate and up to date. Data required includes payroll data for all employees with details about their gender, role and remuneration. Employers also need to be aware of the proper procedures for reporting on transgender, cisgender and non-binary employees. The Government’s FAQ provides answers to commonly asked questions about the type of data that needs to be collected for reporting.
Gender pay gap reporting requires multi-departmental support; therefore, it is vital that all key stakeholders are involved from the beginning. Human resources, IT and the communications team should be working together from the get-go to address any issues that may arise when collecting and reporting data or from publishing these figures.
After employers have collected the appropriate data, analysis commences, resulting in the production of authentic and transparent report documenting any gender pay gap that may exist. These calculations are the first step in identifying a gender pay gap and any associated systemic issues that may be driving its existence.
Employers must follow the regulations closely to ensure that the organisation maintains compliance and fulfils all of the reporting requirements and key metrics. They can refer the Government’s guidance on calculating the gender pay gap metrics for assistance.
Once the figures have been calculated, organisations need to analyse the results to determine where the most prevalent gaps are in the organisation. Employers should search for the causes of these gaps to determine what underlying factors are driving these disparities. Once the causes have been identified, they should use this analysis to create an action plan for addressing the gaps, proving an organisational commitment to reduce any pay disparity present.
Transparent and honest communication regarding the gender pay gap report is key for preserving organisational reputation, maintaining stakeholder buy-in and driving meaningful change. We advise that organisations prepare a communications plan whilst publishing their report, taking into consideration the benefit of sharing the results internally ahead of publishing the report to their website. Organisations must be are prepared to publicly explain any gap that exists.
Providing context in the report that can help employers explain the existence of any pay gap; however, these explanations must be valid and reasonable. Having a cohesive and consistent narrative is especially important to prevent external stakeholders from mistaking a gender pay gap from an equal pay issue, the latter of which is illegal and discriminatory.
The final step of the process is to analyse l internal practices, such as recruitment policies, training pathways, compensation packages, DE&I policies, and family benefits, to understand how changing these policies could help reduce any present pay gap. Once the report has been issued to staff, organisations should issue a statement highlighting their commitment to taking concrete, realistic and actionable steps to reduce any reported pay gap over a period of 12 months. Remember, organisations will be required to report on the gender pay gap annually; therefore, they will have to assess and analyse the previous action plan to determine the level of progress that has been made since the last report.
How Can Grant Thornton Help?
When it comes to gender pay gap reporting, we understand the law and the data – how to get it, investigate it, report it and how to use it to drive meaningful change.
We take an interdisciplinary approach to gender pay gap reporting, integrating our people and change capabilities with our digital transformation expertise and our best-in-class data analysis. With this approach, we not only help your organisation determine its true gender pay gap, but we also act as a collaborative partner helping you to build a strategy to deliver meaningful change across your organisation.
Grant Thornton’s innovative technology solution revolutionises the way organisations tackle diversity, inclusion, and pay equity to close the gender pay gap. It goes beyond helping organisations to meet legislative requirements and offers an unparalleled deep-dive into an organisations employment data, empowering them to make strategic decisions for closing the gap while safeguarding against costly legal and reputational consequences. The user-friendly dashboard serves up a snapshot of the organisational gender pay gap, pinpointing areas in need of attention. By unleashing the power of anonymous employee data, our platform uncovers actionable insights for igniting a culture of fairness and inclusivity.
With a clear and concise strategy for gender pay gap reporting, our clients know that they will meet regulatory requirements while enhancing their employer value proposition and improving employee engagement and loyalty.
Organisations that prioritise DE&I are more likely to attract and retain talent because they show their dedication to creating a workplace committed to equality and fairness. Gender pay gap reporting is only one step in this journey. Once complete, the data gathered can help employers to address other diversity and inclusion inequalities, for example, ethnic diversity. Promoting transparent and inclusive workplaces is an important part of providing opportunities for everyone—regardless of their gender or ethnicity—to advance their careers.
Grant Thornton’s team of organisational psychologists and digital experts will work with you to help your organisation to assess and improve your gender pay gap. With our innovative technology solution, we will provide an unparalleled market leading approach to deliver actionable insights into your workforce needs. If you need help with your gender pay gap reporting, reach out to our team today.
Book a consultation with us today