From the 5th April 2017 organisations with 250+ employees will be required to calculate their pay gap annually.
Yet only one in four firms have got ahead of the game and analysed their gender pay data (CIPD). This is worrying.
It may seem a long way off. But action is needed now.
1. The bonus data starts now
The bonus calculations include all payments from profit shares, bonuses, piecework, commission and LTIPs received in the 12 months prior to 5 April.
This therefore makes 6 April 2016 the very first day of your 2017 Gender Pay Gap Report.
2. You don’t have much time to protect your reputation
A gender pay gap is likely to send negative messages to current employees and potential hires. Particularly if your pay gap is bigger than your competitors.
Knowing your figures mean you can plan action where necessary. But you are cutting it fine.
Getting your commentary right takes time. Implementing new pay and bonus structures take months. Interventions to increase the proportion of women in senior roles need years.
3. It will bring competitive advantage
Drilling into your gender pay data will highlight areas where action is required. Action to improve gender parity.
This isn’t about regulations and reporting dates.
It’s about improved organisational performance from a wider talent pool, mirroring customer profiles, a more loyal and collaborative workforce and increased creativity and innovation (Government Equalities Office).
Gender diverse companies outperform their peers (McKinsey)
So what are you waiting for?
Our Gender Pay Reporting Service helps you establish, and address, your pay gap: "I like the accessible and informative way the report was presented. It clearly set out the legislation and our requirements, but the real value add was in the breakdown of data and the recommendations. The report gives a thoughtful long term view, not just a response to legislation." Victoria May, Reward Manager, Belron UK (Autoglass).
Photo by JD Hancock