The gender pay gap has made headlines recently, with female presenters at the BBC calling on the broadcaster to address pay inequality. Journalists at the Financial Times have also voted for industrial action if the newspaper does not close its 13 percent pay gap. With the new gender pay gap reporting rules now in force, employers should be prepared for the potential repercussions of greater transparency around pay.
UK employers with 250 or more employees are now required to publish figures annually to show the gender pay gap in their workforce, with the first reports due by 4 April 2018. Increased transparency around pay may lead to increased queries, grievances and claims but explaining the figures will be key to mitigating this. A gender pay gap does not necessarily mean pay inequality. Employers should therefore consider carefully how they will communicate the figures, the reasons behind any pay gap and what is being done to address it.
We are working with a number of our clients on such projects, including:
- analysing gender pay gap reporting figures and the reasons for any pay gaps
- considering measures to help reduce pay gaps over time
- reflecting on what narrative might accompany the figures, to help explain any gaps identified and measures taken to address them, and
- identifying where pay discrepancies might exist and where the organisation might be vulnerable to equal pay claims or grievances.
Employers can see what other organisations have published so far on the Government's Gender Pay Gap Viewing Service.