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Gender pay gap reporting - 6 things you need to know

Posted: 13 Feb 2018

Companies with 250+ employees have until 4th April to publish the results of their mandatory gender pay gap analysis. As Personnel Today reports, the findings will need to be posted in a publicly accessible manner on the company website.

Commentary isn't required, but it can help the public, employees and even the companies themselves to understand the results.

With the deadline creeping ever closer, HR Magazine recommends businesses do the following to better comprehend their pay gap:

 

Look at full-time and part-time separately

Part-time workers are nearly always paid less than their full-time counterparts, and more women tend to work part-time than men.

In 2016, national statistics suggested the gender pay gap for full-time employees was 9.4% but this rose to 18.1% when full and part-time were taken into account. By looking at FTE and non-FTE separately, businesses can investigate hourly rates and why part-time pay is lower.

 

Take account of bonuses

When examining bonuses separately, the pay gap will be bigger. Employees with bonuses which are pro-rated for part-time or maternity leave will be disproportionately female and could have a significant impact on the bonus gap, and businesses will need to take account of this.

 

Provide pre and post-salary sacrifice figures

Employee salary sacrifice arrangements are excluded from pay gap reporting. Generally, more women make use of salary sacrifice benefits, such as childcare vouchers and additional leave. An artificially lower rate of pay could then show up, so consider separate figures showing pre-salary sacrifice and and post-salary sacrifice.

 

Analyse seniority and tenure

Women are under-represented in more senior levels for various reasons. However, HR Magazine argues that tenure and seniority should be included in the analysis as both of these usually equate to higher pay rates.

 

Tackle the maternity penalty

Follow the Office for National Statistics and produce figures on the gender pay gap by age for FTE and non-FTE. The majority of companies will find a 'maternity penalty' - where pay gaps increase for women aged 30 and above when they have children. When addressing your company's gender pay gap, focus on tackling this penalty.

Look at your pay practice as a whole

Gender pay gap reporting provides companies with the perfect opportunity to examine their general pay practice. Pay policies, eligibility, bonus schemes, pay increases, promotions, newly hired staff - these could all hide potentially problematic areas and directly cause gender pay inequality - even if you weren't aware of it.

While it may be difficult to achieve, especially for large organisations with a lot of data, gender pay gap reporting should bring about the transparency needed to create a level playing field. Having deeper insights to better handle gender and pay could have a hugely positive impact on businesses.

A diverse workforce can bring significant benefits to companies. If you'd like help attracting the top talent, get in contact with us at Stopgap today.

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