Gender pay reporting is coming, and Deloitte explains how organisations can prepare for their new disclosures.
7 December 2017
What is gender pay reporting?
Employers with 250 or more employees are required to take a snapshot of their pay data at 5 April 2017, which should be analysed and published at a date of their choice, but no later than 4 April 2018.
The gender pay gap information should be reported on the company's website and on the Government sponsored website, and should be signed off by a director to confirm the accuracy of the numbers.
The regulations require companies to set out the differences between their male and female staff, according to:
- difference in mean and median hourly pay
- difference in mean and median bonus pay
- proportion of male and female employees who received a bonus in the year
- proportion of male and female employees in each quartile of the overall pay range.
In addition to this information, employers should provide contextual narrative, explaining any pay gaps and setting out what remedial action they intend to take.
The current position
Currently, fewer than 300 out of an anticipated 9,000 companies have publicly reported their gender pay gaps, only a handful of which are in the housing sector.
It is clear that organisations are either struggling to calculate their numbers, struggling to understand what their data is telling them, or unsure how to communicate their findings and effectively deal with their issues.
Understanding the underlying causes
As more organisations report within the sector, it will become clearer how associations compare with each other, but also with other sectors. However, it is vitally important that organisations understand what lies behind their numbers to allow them to develop a cohesive and effective diversity strategy, as well as to assist them in answering any questions raised.
Alongside the key reporting metrics required by the regulations, a company may also want to consider undertaking additional analysis on differences in pay and the composition and structure of their workforce. This would enable them to better understand the story behind their numbers and identify actions to target any gender pay gaps.