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Law for Business

Knowhow - guidance - precedents

Loch Employment Law , 06 APR 2017

Salary Data Reporting

Salary Data Reporting
Julie Nicholds, Director of HR Advise Me

On 6th April 2017, The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 come into force, meaning that all private and voluntary-sector employers with 250 or more employees must publish information about their gender pay gaps. By April 2018, these employers must publish the results of the gender pay gap analysis on their websites, ensuring it is easily accessible to the public. A signed accuracy statement must accompany this, and the results must remain on the website for at least three years. Employers also need to upload their gender pay gap analysis results onto the Government’s reporting website.

This seems like an awful lot of reporting to partake in, but it is important to note that Gender Pay Gap reporting is different from an Equal Pay Audit, which compares individuals in the same role to ensure both genders are paid equally and fairly. Gender Pay reporting is for more general; employers must publish six calculations which focus on averages across the organisation rather than specific individuals in similar roles.

Although this is new for many employers, some have been publishing their whole organisation’s salaries for the world to see for some time. Tech start-ups, advertising agencies, and organic food shops are amongst those who encourage complete transparency and openness of salary, for everyone from the CEO to the checkout staff. Advocates of this approach claim that employees actually discuss salaries less as it is clearly defined why and how each individual is paid. On top of this, they say workplace politics become a thing of the past, and overall camaraderie prevails. The companies argue that it helps to attract and retain the best talent, and once they are on board they spend less time gossiping about pay rises and being underpaid, and more time focussing on how to improve the business and over perform in their job roles. Article continues below...
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But what happens if a member of staff is not happy with having their salary published? Employers should take time to listen to these concerns, but should remain aware that there may be an underlying confidence issue to address where the individual concerned does not agree with their salary, or is worried that others may not be aware of what they earn. However, Gender Pay Reporting does not single out individuals or assign each listed employee to a salary on the website.

If you as an employer are worried that the figures will be less than complimentary to your business, don’t panic. Be open with your employees, and start pulling together a strategic action plan to address any concerns or shortcomings. Part of the Government reporting includes the opportunity to provide a narrative to explain your results and your plans to address any gaps, although this should not be seen as an excuse for non-compliance.

McKinsey has estimated that bridging the UK gender gap has the potential to create an extra £150 billion on top of 2025 business-as-usual GDP forecasts, so you’d be missing out if you think that there is no benefit to your business to close the gap.

Julie Nicholds is a Director of HR Advise Me, part of the Loch Associates Group incorporating Loch Employment Law, HR Advise Me, Loch Health and Loch Mediation.

For more information on the Loch Associates Group please call us on 01892 773970, email info@lochassociatesgroup.co.uk or visit www.thelochassociatesgroup.co.uk 
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