The current overall gender pay gap for full-time workers is 13.9 per cent, according to the Fawcett Society. In an effort to address this, from 6th April, new legislation will require employers with over 250 employees to report annual figures for the following:
• Gender pay gap (mean and median averages)
• Gender bonus gap (mean and median averages)
• Proportion of men and women receiving bonuses
• Proportion of men and women in each quartile of the organisation’s pay structure.
This will be published on their own, and on a government websites. Many hope that this will improve equality in pay, by highlighting companies in a negative way that have pay disparities. Sarah Henchoz, employment partner at law firm Allen & Ovary says “The gender pay gap reporting provisions are likely to do more for pay parity in five years than equal pay legislation has done in 45 years”.
Businesses reporting a high gender pay gap may be seen as less committed to women’s careers and therefore less attractive as employers, affecting their ability to recruit. It may even affect how their brand is perceived in the wider market.
This maybe an opportunity for businesses to revisit their policies, recruitment practices and employee relations.
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