Targets to eliminate the gender pay gap must be set by all companies, Britain’s equality watchdog has suggested. The Equality and Human Rights Commission called for a new law obliging employers to publish plans for tackling wage disparities, after finding only one in five had drawn any up. Currently, legislation requires organisations with more than 250 employees to report details of its gender pay gap once a year - but not the action being taken to address it. It is feared without additional legal clout the reporting laws will not help narrow the gulf between men and women. A study of 440 employers was carried out by the EHRC, including 40 FTSE 350 organisations and others from sectors such as finance, manufacturing and the arts. Just 11% had set pay gap targets for themselves each year, which would allow them to measure progress over time, it was found. Goals for one company included increasing the number of female staff earning more than £40,000 a year to at least 25% by … [Read more...] about Gender pay gap targets must be set by all companies, Equality and Human Rights Commission says
Mandatory gender pay gap reporting
Transparency of data has been an important first step in addressing and tackling the gender pay gap. Currently the publication of action plans is not mandatory, however the Equality and Human Rights Commission (EHRC) has said it is essential that these plans are published if a business wants to demonstrate a real commitment to reducing the gap. The EHRC has carried out an analysis of employers’ gender pay gap action plans to understand what they are doing to drive meaningful change and tackle inequalities facing women in the workplace. Key findings include: Only one in five employers sampled have produced an action plan to close the gender pay gap. Only 11% had set themselves targets that would enable them to measure progress of their plans year on year. Larger employers were more likely than smaller ones to set themselves targets, as employers with fewer than 499 staff were less likely to publish an action plan as part of their gender pay gap figures than larger ones. The … [Read more...] about Moving from numbers to action: Equality body reviews the impact of gender pay gap reporting
Employers could be forced to publish their race pay gap under plans set out by Theresa May to uncover the extent of discrimination against ethnic minorities in the workplace. In the wake of gender pay gap reporting laws, the government will consult over forcing thousands of businesses to disclose disparities between the pay packets of black, Asian and ethnic minority (Bame) employees and their white counterparts. Only 3 per cent of employers measure their ethnicity and disability pay gap, according to the Equality and Human Rights Commission (EHRC), which warned that lack of meaningful data on diversity in the workplace could be holding people back. The prime minister said black and ethnic minority workers too often “feel they’re hitting a brick wall” in their careers, as she also unveiled a new charter that would commit businesses to improve diversity in hiring practices and in senior positions. It comes as Jeremy … [Read more...] about Businesses could be forced to publish race pay gap to banish inequalities
Subscribe to the Pay Check on Apple PodcastsSubscribe to the Pay Check on Pocket CastsFor years, the U.K. encouraged companies to voluntarily make public their gender pay gap—the difference between what they pay men and women, on average. And for years, companies ignored the prodding, so the government made it mandatory. The new law requires companies with more than 250 U.K. employees to file pay disclosures with the government. More than 10,000 companies reported by the April deadline, revealing differences in median pay of as much as 60 percent in some extreme cases. Now it’s up to companies to decide what, if anything, to do about that. This week on the Pay Check, Suzi Ring talks to one company that reported a wide gap and assesses how that's changing the way it hires and pays women. Iceland also has a new pay-gap law. The country is requiring every company with more than 25 employees to submit to the government official salaries for every job. If … [Read more...] about Can Companies Be Shamed Into Closing the Pay Gap?
The findings are contained in a new report by HR and employee benefits consultants Mercer, ahead of draft legislation aimed at promoting equal pay. In April, the UK introduced mandatory reporting of gender pay gaps for organisations that employ at least 250 staff. Similar legislation may be ushered in here by the end of this year. The data revealed that in 74pc of firms men are paid more than women and dominate the highest-paid ranks while the lowest salary bands are primarily populated by women. Mercer's report reveals 67pc of polled firms are concerned about the potential reputational impact of gender pay gap reporting, and half worry about the cost that addressing pay differentials might impose on their business. The findings also highlight the high levels of inertia at tackling inequality. They show 70pc of large organisations have yet to assess whether a pay bias exists, prompting Helen McCarthy, senior HR strategy consultant at Mercer, to claim "much work remains to be … [Read more...] about Firms fear fallout from pay gap audits