So, what is the gender pay gap? Put simply, it is the difference in average pay between women and men in your business. The data is a “snapshot” of the difference on 5 April and the gap is provided as a percentage.
In addition to the mandatory information, which must be supplied within the gender pay gap report, employers often include a voluntary narrative contextualising and explaining any gaps. This is an opportunity to set out any actions which the company will take to improve the gap and to address any identified disparity or inequality. Across the UK there is a gender pay gap (placed at 8.3% in April 2022 [1]), but what’s important to stakeholders and current or future employees who may see this report is what is being done to address this and to improve equality. We can assist in analysing your gender pay gap figures and providing this narrative or in reviewing the narrative which you propose to include, along with preparing a strategy for your report. Out of all companies that report on their GPG, 83% produce a narrative. Narrative reporting has facilitated a 34% increase in the number of people to hold a strong understanding of the GPG [2].
Your gender pay gap report must be published on your public company website by 4 April 2023 and uploaded to the government website.
Reporting on your gender pay gap is important for many reasons, not just because there is a legal requirement to do so. The initial step of promoting gender equality in your business is to understand how your company is performing, and gender pay gap reporting is the perfect time to analyse those figures. It is only once this has been done and any areas of concern identified, that a business can truly strive to drive action and make plans to increase equality and diversity. Reporting on these figures also ensures that businesses are not simply paying lip-service to equality and it introduces a measurable, quantifiable derivative from which a business can assess how gender quality is improving year on year.
Did you know that:
- The UK gender pay gap means that women worked for free from the start of the year until 23 February 2023 [3].
- It is currently predicted that it will take over 50 years to close the gender pay gap [4].
- Across the OECD the UK dropped five places, down to 14th, in the most recent index demonstrating progress towards gender equality [5].
- As at January 2023, there were only 38 female chairs, 18 CEOs and 75 executive directors in the FTSE 350 [6].
Those facts alone serve to demonstrate why it is important to not just report, but also to analyse the data gathered and to use this as a catalyst for positive change.
Please be aware that the rules and requirements for reporting are different for public sector employers and if you need any advise in relation to those differing requirements, please get in touch.
Should you require any advice in relation to the reporting requirements, assistance with finalising your report or advice in implementing a strategy to drive improved gender equality within your business, please get in touch.
