The gender pay reporting regulations were approved by parliament yesterday. Companies with 250 or more employees need to calculate their gender pay gap figures in April 2017, and have twelve months to publish them.
Why is reducing, not just publishing, your gender pay gap such an important area of focus?
- There are clear business benefits – gender parity improves talent attraction, alignment with customers, employee engagement, and innovation. The UK could add £0.6 trillion to GDP by 2025 by fully bridging the gender gap (McKinsey Global Institute).
- It affects your brand – reputation and brand affect consumer choices, particularly in competitive markets. The government is planning sector league tables so you don’t want to be at the bottom.
- It makes you attractive to talent – a workplace where women flourish is part of your overall employee deal. How long before sites such as Glassdoor publish gender pay gaps to help those looking for the best companies to work for?
- It engages employees – fair pay is a key driver of engagement and a strong gender pay message is a great way to improve morale and pride.
- There’s an equal pay risk – failure to publish your gender pay gap is an unlawful act and actually having a pay gap could be used as supporting evidence of poor practice in an equal pay claim.
- It demonstrates good governance – the best Remuneration Committees will include gender pay in their remuneration reports. Some will task executives with improving the gap and linking progress with their own pay.
- It will help procurement – there’s no doubt that gender pay gap figures will soon become a requirement for many tender processes.
- It prepares you for acquisition – gender parity can be used as evidence of a well-run, and well-balanced, business to potential buyers.
- It's good for men too – a positive knock-on effect of closing the gender pay gap and championing female leaders is less pressure on men (see this blog from Nick Court).
- It’s simply the right thing to do - when we empower women, society benefits, grows and thrives (UN Foundation)
What are you waiting for?
Image courtesy of JD Hancock.