Pay Transparency and Pay Gap Reporting

There are an increasing number of regulations being created around the world that are focussed on addressing some of the social injustices in work today and while few would argue with their intent, they do create additional workload for an employer.

Our team are able to provide support and advice to clients on:

1. UK Gender Pay Gap Reporting

A regulatory requirement since 2017 for all employers with 250+ employees, the UK Gender Pay Gap regulations require an employer to calculate and publish their gender pay gap annually. Many organisations with less than 250 employees also complete the exercise for a number of reasons including the fact that they simply think it is the right thing for their business to do.

We are able to support you by:

• Calculating your Gender Pay Gap
• Reviewing your existing calculations
• Drafting the accompanying narrative (including an action plan) for your website
• Looking at the underlying causes of your pay gap and advising on corrective actions

2. UK Ethnicity Pay Gap Reporting

This is not yet a regulatory requirement but an increasing number of employers are applying the UK Gender Pay Gap methodology to Ethnicity Pay Gap Reporting and are choosing to conduct the calculations and publish the results on their website alongside their Gender Pay Gap annually.

We are able to support you by:

• Calculating your Ethnicity Pay Gap
• Reviewing your existing calculations
• Drafting the accompanying narrative (including an action plan) for your website
• Looking at the underlying causes of your pay gap and advising on corrective actions

3. Pay Transparency and the EU Pay Transparency Directive

The EU has developed a new suite of regulations that is in the process of being written into the national laws of the EU member states. These regulations are going to have a significant impact on reward practices and on the fundamental nature of employee/ employer relationships across the EU and the UK will not escape the impact of the new rules either.

There is still a little time before they come into effect, but time is only an advantage if it is used so, as a result we are advising UK and EU employers to begin preparing now.

The support we can offer will vary based on an employers specific context but there are three common activities that we can help to kick-start the planning process:

• An education and awareness session for Leadership Teams and HR teams across an organisation
• A readiness review which conducts a deep dive analysis of current reward practices against the regulatory requirements, identifying areas which are compliant and those which are going to need further evolution. All assessments and conclusions are fully documented and include suggestions and options for activities to help address the risk of non-compliance
• Developing a transparency strategy and journey plan to deliver compliance in alignment with any existing DEI activities and in a way which benefits the business and employees