Navigating UK requirements and workplace equity – Gender Pay Gap reporting in the spotlight

What is the Gender Pay Gap? 

The Gender Pay Gap refers to the difference in average pay between men and women in the workforce. Even though it is closely related to pay equality, the Gender Pay Gap and equal pay should not be folded into one. Equal pay refers to the remuneration employees receive when holding the same position irrespective of gender. 

Figures from the Office for National Statistics (ONS), state the median hourly pay for full time employees was 7.7% less for women than for men in April 2023, compared to 7.6% in 2022. This suggests that there is still significant work to be done to decrease the Gender Pay Gap. 

Why is this important?  

In the current cost-of-living crisis, pay transparency and equity are at the forefront of public and regulatory interest; employers are also increasingly in the public eye to evidence commitment to reducing their respective Gender Pay Gaps. If relevant employers fail to report their Gender Pay Gap information on time or report inaccurate data, the Equality and Human Rights Commission (EHRC) can take enforcement actions, which can lead to court orders and heavy fines. 

Gender Pay Gap reporting is far more than a regulatory obligation. It can be a catalyst for positive change within organisations, regardless of the requirement to publish their Gender Pay Gap information. It’s seen as a testament to employers’ commitment to fostering workplace equality and creating a work culture with equity at its core. Having a robust action plan in place to reduce the Gender Pay Gap also positively influences the employer brand, enhances employee engagement, and makes employers more attractive for prospective candidates. 

Many employers are also focusing on longer term goals to ensure their Gender Pay Gap is continuously reduced. Gender Pay Gap data and analysis can and should be the foundation on which measures to decrease the Gender Pay Gap are developed. By overlaying additional information on the organisational structure and reward data with pay data, a detailed Gender Pay Gap report can help to uncover the causes of the gender pay disparities, such as unveiling departmental contributions and understanding the impact of unequal distribution of family responsibilities. It can illuminate factors which help maintain a ‘glass ceiling’, i.e., preventing women from progressing into the most senior roles of organisations and help to identify structural drivers of occupational segregation.

Buzzacott HR Consultancy are here to support and guide you 

In an ideal world, every organisation would have a dedicated person, or a team of people, who are not just responsible for producing their gender pay gap information, but who are then taking steps to act upon this critical information. We recognise however, that is likely an unrealistic expectation for many, which is where we can help.  

Not only can we produce your calculations for you, but we can help you to go beyond the numbers by offering strategic support to tackle the unique challenges your organisation is facing when addressing the gender pay disparities. By analysing your data through a comprehensive lens, our HR experts provide you a nuanced understanding of the underlying dynamics shaping gender pay disparities within your organisation.  

Let our team, be your team. Get in touch with our HR experts today. 

If your organisation needs HR support or advice and could benefit from the expertise of our outsourced HR experts, simply complete the form below and a member of the team will be in touch with you.