You may be congratulating yourself on your early Christmas shopping and smugly admiring your perfectly wrapped presents but are you ready for that other important deadline?…Gender pay gap reporting!
If you haven’t already started your preparations, now is the time to get ready for the reporting deadline of 4 April 2018. Currently, only 5% of employers(300 out of 7,000) who are obliged to report have published their gender pay gap so there is still lots of work to do!
The reporting requirement
Employers with over 250 employees are required to calculate their gender pay gap and publish the details on their website by 4 April 2018.
This will involve calculating the median and mean gender pay gap based on an hourly rate of pay. Employers must also calculate the pay distribution divided over 4 quartiles and the number (as a percentage) of males and females in each quartile.
In addition, employers must publish the difference between their mean and median bonus payments to men and women and the proportion of males and females who receive a bonus.
Why is it important to publish gender pay gap statistics?
Once collated, gender pay gap information must be published on the employer’s website and the Government will also publish a “league table” of organisations’ gender pay gaps.
This information will be seen by clients, competitors, employees and prospective candidates. Talent attraction, retention and reputational damage are potentially at stake if employers take a reticent approach to publishing their pay data.
Explaining your data
It is also important for employers to understand any gender pay gap that is revealed so that steps can be taken to close it for the future.
There is an option under the legislation to provide a narrative to contextualise the data. Providing a narrative will be a useful tool in minimising reputational damage, managing any other challenges that arise out of poor statistics and ultimately will be a key opportunity to “manage the message”.
What should employers be doing now?
Bear in mind that undertaking the calculations is an onerous task and will on average take a company 68 hours. The method of carrying out and deciding what to include in the calculations is also complex – the government guidance on this runs to 40 pages!
We can help!
Let Boyes Turner’s Employment Group take the stress away by preparing your gender pay gap report for you!