It's not just about the headline figures...
we like to really understand your business
to explain what the numbers actually mean.
Knowing the detail of the pay gaps in your organisation makes sound business sense - and working to remove any inequalities is the moral and legal thing to do. We can analyse the data for you, explain our findings and provide you with support and advice on any risk areas we find.
Why conduct a pay audit?
New regulations on the reporting of Gender Pay Gap Information come into force soon.
While this is a positive step that will place greater focus on fair pay, the publication of adverse results or the failure to comply with the legislation may lead to negative publicity and damaged reputations. In extreme cases, any resulting equal pay claims could be costly.
Employers with at least 250 employees will need to publish information annually about their gender pay gap. Care should be taken as many self-employed workers who are engaged directly by employers may count towards this threshold, bringing more employers in scope.
The first set of data will be based on a snapshot of the position on 5 April 2017, with the results having to be published by 4 April 2018.
What needs to be reported?
The Regulations detail exactly what is required and further guidance is expected from ACAS and the Government in due course. In summary, the following will need to be reported:
There are specific definitions that need to be followed, for example about what should be included within 'pay' and 'bonus'.
How must companies comply?
The data must be published on the employer’s website by April 2018, remaining there for three years. There will also be a website to which all gender pay reports must be uploaded. It may be that the Government will use this to create sector-by-sector league tables.
Employers should consider whether to include additional context to the figures in supporting commentary. This could be to explain any actions being taken to address pay gaps or to explain how they compare with peer organisations.
View our 4 minute video summary to find out more...
When do you need to act?
Although companies don't need to publish their statistics until the start of April 2018, it makes sense to at least analyse the position as it stands at the first snapshot date of 5 April 2017 as soon as possible.
This will give you more time to start addressing any issues well in advance of the second snapshot date of 5 April 2018.
Reporting on your gender pay gap is a systematic task, but you will need to think carefully about how to make improvements to the statistics year on year - and how to use the process to help improve your business.
As well as considering adjustments to your pay practices, you may need to look more deeply at processes to mitigate against gender bias, to encourage career progression and perhaps examine how managers are trained.
How EBRS can help you
The reporting process can be time-consuming and daunting, so we regularly conduct equal pay audits for clients, either to check the current position or as part of the process of developing and implementing new reward practices. We offer two audit options:
1. The Standard Audit Service
This option provides organisations with a broad overview of their gender pay gap and will enable you to meet your obligations under the new legislation.
We will provide guidance notes that explain the information that you need to include in the exercise, along with a spreadsheet template so you can send us the required data.
We will calculate your overall gender pay gap and produce the other figures that are needed. We will then summarise this in a report format for you ready to be signed off and published.
We’ll also go through your reward systems with you, so we can suggest where any risks and issues might lie. You can then decide whether to undertake additional analysis to help present your published report in the best context.
2. The Full Audit Service
This goes much deeper than the legislation requires, but it will give you the necessary detail to understand and get to grips with any equal pay issues. It is tailored to your exact needs.
We will conduct a more detailed analysis of your gender pay data, such as by job level, full time/part time roles and by function, business unit and region.
The review can also be extended to cover other comparisons, such as by ethnicity and disability, depending on your structure and the data you collect.
We can also consider the wider elements of your total reward package, such as allowances, bonuses and benefits to provide a full picture.
Our findings will be set out in a report that clearly explains the issues. We will identify any pay gaps and bring these to your attention, helping you to focus on any high risk areas.
We can also conduct a broader assessment of your reward practices, highlighting the strengths and weaknesses of your pay and grading structures, as well as the potential for any unintended equal pay risks.
Finally, we can also work with you to devise an action plan to reduce any risks that we identify.
Find out more
Contact us today for a quotation.