Gender pay reporting is set to become compulsory for large businesses this year. Human resources business partner Sheetal Gill tells you what information you need to publish and by when
On 6 April 2017, the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 are likely to come into force (subject to parliamentary approval).
They will require employers with 250 or more employees in the private and voluntary sectors to publish their gender pay information on the company website on 5 April 2018 and annually thereafter. This information must also be submitted to government.
So what are the key steps and information that employers need to know for gender pay reporting?
Employers must identify and report on the pay and bonuses paid to employees and others (such as consultants) undertaking work for the organisation in a personal capacity. This means collating information from a number of sources, not just from payroll.
- the difference in mean pay between male and female employees
- the difference in median pay between male and female employees
- the difference in mean bonus pay between male and female employees
- the difference in median bonus pay between male and female employees
- the proportions of male and female employees who were paid bonus pay
- the proportions of male and female employees in each quartile of their pay distribution
The pay information must be based on data from a snapshot date of 5 April every year, beginning with 5 April 2017. The bonus information must be based on the preceding 12-month period, beginning with the 12 months leading up to 5 April 2017.
The government regulations have guidance on how to calculate hourly pay, irregular hours and bonus payments.
Gender pay reporting timeline
Early 2017: Begin to collect data for the first reporting period. As bonus pay data includes payments from the year preceding 5 April 2017, you may need to collect figures on bonus payments from as early as 5 April 2016. Pay data covers payments for the April 2017 pay period.
6 April 2017: The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 are expected to come into force. Begin to carry out calculations to determine your gender pay gap results. Consider creating an action plan to address gender pay gaps.
By 4 April 2018: Publish the results of the gender pay gap analysis on your organisation’s website and report to government. Organisations should consider adding a narrative to help employees and the public understand their results, particularly in cases where gender pay gaps seem significant.
Alternatively, commentary can help highlight an organisation’s strong performance relative to its competitors. Employers will be required to keep their gender pay figures online for three years in order to show the progress made.
It is disappointing that we need further legislation to tackle the gender inequality issue. What businesses do need to bear in mind is the impact the public findings will have on their business branding and being an employer of choice.
It would also be good practice for all employers regardless of size to review how they pay people to ensure it is fair and non-discriminatory.
It’s time to take action now.
Sheetal Gill is a member of the IoD