The UK Government are considering implementing legislation in 2016 whereby companies with over 250 employees must report the inequalities in their pay between men and women. Although we are not yet sure what form this legislation will take or what exactly will be required, this article looks at the likely impact any new gender pay laws with have and make some recommendations for businesses who wish to prepare in advance.
Mike McClelland, Managing Director at recruitment software company, Advorto advises, “It is not yet clear what level of information would be required from companies. If only a single figure is required, the impact on a business could be relatively small, especially if they find that there is a negligible pay gap,”
“If companies are required to give more details, for example, figures for men and women in comparable jobs it will of course give much more meaningful statistics, but will require much more analysis”, Mike continues.
If more detailed information is required, the impact will be different on companies depending on whether their HR data is managed by robust HR software. Where hiring, employment and salary information is stored in a meaningful and easily analysed fashion, dividing employees into comparable roles and by gender will be a much simpler process than those without.
“Smaller companies are less likely to have all of their information stored in a searchable and reportable format”, explains Mike. “It is possible that the government will demand less information for smaller companies. Without knowing this for sure, companies much be prepared to provide full gender pay gap information – which may provide an impetus to invest in software in advance of the 2016 legislation”.
Companies who do not want to be taken by surprise by this legislation need to begin their preparations as soon as possible. Investing in robust HR is essential, as is taking this new legislation in mind at every point of the HR process.
“Those companies who pay men and women differently will obviously have a harder time under the new legislation to redress the wage difference”, Mike concludes. “The pay gap will need to be closed, not only to keep the existing staff from leaving (and maybe taking legal action) but also to attract women to their company in the future”.
Equality should rule HR’s processes at every point including recruitment. Having a set of required skills and qualifications in place before the interview process, and running a “data driven” hiring process will help to ensure that employment and remuneration is based purely on a candidate’s ability to do the job and not on their gender.
Advorto have created a whitepaper, Hiring Solutions: Leaders in the Spotlight. In part, it discusses how to secure the best candidates for leadership roles, and is available for download here.
For more information, Advorto can be contacted
– by phone on 020 7101 0330
– by visiting their website