Gender Pay Gap Reporting - Are you prepared?
31st August 2016
The government has already taken steps to try and
combat the issues surrounding gender pay gap, when in February of this year the
Gender Pay Gap Information Regulations were published.
The regulations now mean that as of April 2017,
businesses with more than 250 employees will be required to collect data on and
then report how they pay men and women, which will affect around 8,000
businesses across the UK. Businesses will be required to publish the
data no later than April 2018 (employers will have up to 12 months to choose
when to publish the information).
Although April 2017 seems a long way away, you
need to ensure you're as prepared as possible, so what needs to be done to
ensure your business complies with regulations?
There
are three different sets of data which businesses must measure:
The
difference in pay between male and female employees: Employers
will have to calculate and report the difference between the median and mean
pay for men and women (expressed as a percentage of men’s median and mean pay).
The
difference in bonus payments between male and female employees: As
well as the pay gap, employers will also have to report on the proportion of men
and women who receive bonus payments, based on headcount, in the 12 months before
the day you’re collecting the data. This includes:
- Profit sharing
- Productivity payments
- Performance payments
- Commission
The
number of men and women in each pay quartile: Employers will also
be required to publish the proportion of men and women working in each pay
quartile. This will involve dividing the workforce’s overall pay range into
four notional pay bands, to be labelled A-D, and reporting the gender split in
those bands.
For full guidance on implementing the gender pay gap
reporting regulations, please see: http://www.acas.org.uk/index.aspx?articleid=5768
If
your business is going to be affected by the new Gender Pay Gap Regulations,
what impact is this likely to have?
Drop
us an email at Services@JVPGroup.co.uk or give us a call on 0844 967 4467.