Mind the gap

New gender pay gap reporting requirements have come into force, with public sector bodies with 250 or more employees required to publish their gender pay gap data. How does your gender pay gap report shape up? 

In my Feb 2017 news, I published an update on the new reporting requirements, where I covered:

• what you need to publish
• how you need to publish
• the difference between gender pay gap and equal pay
• the link with the gender pay gap reporting requirement and legal requirements under the Public Sector Equality Duty
• the causes of the gender pay gap in Britain
• actions to consider to actively reduce your gender pay gap
• consequences if you fail to publish

If you missed this update, you can access it here

Below, I have adapted a guide published by personneltoday, which complements the information given in my February update and provides you with a series of steps to consider when drafting your gender pay gap report.

1. Explain what the gender pay gap report is and why you must publish it

You should introduce your gender pay gap report with a brief explanation of the legislation that requires you to publish details annually of their gender pay gap.

2. Highlight the six metrics required by the legislation

You should set out the six key metrics that are necessary under the rules on gender pay gap reports. These are:

• the difference in the mean pay of full-pay men and women, expressed as a percentage;
• the difference in the median pay of full-pay men and women, expressed as a percentage;
• the difference in mean bonus pay of men and women, expressed as a percentage;
• the difference in median bonus pay of men and women, expressed as a percentage;
• the proportion of men and women who received bonus pay; and
• the proportion of full-pay men and women in each of four quartile pay bands

3. Focus on the underlying causes of a gender pay gap

Consider adding some commentary to the report, to avoid potential reputational damage by failing to put the figures in context. Supporting information helps someone reading the statement to understand the organisation’s view of why the gender pay gap is present and what the organisation intends to do narrow the gap. The narrative might explain key challenges, for example a senior and middle management that is predominantly men (or women). 

4. Explain how the employer’s gender pay gap looks against the wider picture

You could use your supporting commentary to explain how your figures compare with the gender pay gap of other organisations within the same sector, and with the wider economy.

5. Say what the employer is doing to address its gender pay gap 

You could use your supporting statement to set out what actions you are taking, or plans to take, to address your gender pay gap. You could also explain what other steps you are taking to improve gender diversity. This could involve running initiatives to improve support for women returning from maternity leave, to increase their chances of career progression further down the line. Alongside the required reporting, organisations are encouraged to provide an action plan outlining steps they will take to close the gender pay gap. 

6. Have a senior figure sign off on the gender pay gap report

For private- and voluntary-sector employers, the report should conclude with a written statement confirming that the information is accurate. The statement of accuracy must be signed by a senior figure within the organisation. This requirement does not apply to public-sector organisations. However, it might be helpful for a senior leader in the organisation to be seen to take the lead in meeting the legal requirements as this helps to confirm that the organisation is taking the duties seriously and tackling gaps at a senior level.