Top tips for gender pay reporting
May 2017: Now that the Equality Act 2010 (Gender Pay Gap information) regulations are in force, ICAEW has issued guidance to help you and your clients get started.
It is now a legal requirement for organisations with over 250 employees to publish a report on their gender pay gap based on six different metrics. As a result it is likely that they will be expected to explain and act on the results.
“Organisations should be fully prepared not just to gather the data but to provide meaningful explanations and manage any possible backlash from employees, clients or other interested parties,” says Dr Jane Berney, ICAEW technical manager for business law.
Top tips include:
- Who will prepare the data, produce the report and sign it off? For some this may be a responsibility for HR, for some it may be the financial department. In either case, make sure everyone knows ahead of time who will be preparing the data, producing the report and signing it off to avoid any confusion or cross-over.
- Decide how you will discuss the data with your employees. Prepare ahead of time to tackle potentially difficult questions and situations. If the pay gap is wide, companies must consider why this is so and how to tackle it. Discuss the best route for your company, whether this is handled on an individual basis or addressed in a company-wide briefing.
- Who/what is included? Employees to consider include part-time workers, job share, those on maternity/paternity leave, overseas workers, agency workers and contractors. Similarly, consider what is counted in terms of allowances, bonuses and benefits.
- Gender identity. If an employee identifies as another gender than assigned at birth, they can be included in their preferred gender figures. Consider how to sensitively approach this in terms of discussion with the employee, whether the employer has the right to know, or what to do if the employee identifies with neither gender.
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