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Mind the gap – act now to address any gender pay issues

The gender pay gap is in the headlines again after research from the Institute of Fiscal Studies (IFS) showed the average difference in pay between men and women is 18%.

The research comes as the Government prepares to introduce gender pay and gender bonus gap reporting.

What does the research say?

The IFS found that women earn 18% less per hour than men on average.

The IFS also found that the gap balloons after women have children, raising the prospect that mothers are missing out on pay rises and promotions.

That is echoed by a separate report suggesting that male managers are 40% more likely than female managers to be promoted.

Responding to the IFS study, a Government spokeswoman said: “We want to make our country a place where there is no limit on anyone’s ambition or what they can achieve… That’s why we are pushing ahead with plans to force businesses to publish their gender pay and gender bonus gap.”

How does this affect me?

Gender pay and gender bonus reporting comes into force very soon.

In April 2017 – only eight months away – a snapshot will be taken of what you pay to your employees that month.

You will then have until April 2018 to publish these figures online, both on your own website and on a Government website.

The public, and your employees, will be able to access these figures and judge for themselves whether they believe there are discrepancies in terms of what you pay to your male and your female employees. Are you prepared for this?

Who does this affect?

All employers with 250 or more employees will be required to publish this information.

What action should I take?

We are advising all clients to carry out an analysis of pay structures now so that any potential discrimination can be rectified before you are required to publish your potentially discriminatory April 2017 pay structures in April 2018.

How can Ward Hadaway help?

We can help in two ways:

Firstly, we can carry out an analysis of your company’s pay information and produce a report in a format suitable for publication.

Secondly, we can analyse your pay structures to provide a confidential report on any concerns or potential areas of equal pay discrimination.

If you haven’t already taken any steps to get ready for gender pay gap reporting, now is the time to act, while you still have time to rectify any issues before April 2017.

If you require any further information, please do not hesitate to get in touch with Rachael McCartney or Lynn Scope.