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Consultation on gender pay gap

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Consultation on gender pay gap

The government-commissioned Kingsmill review aims to reduce the gender pay gap by as much as 50% within five years. The final report is due to be published in autumn 2001. Visit the review's new web site to submit your comments to the Kingsmill team before the report is compiled.

Government ministers commissioned the Kingsmill review on women's pay and employment in April.

It will provide ministers with:

  • a review of the UK’ s human capital management credentials

  • a range of recommendations to enhance performance
  • specific ideas to promote best practice in both the private and public sector.

The report will also draw international comparisons and include background information on the gender pay gap, current legislation and the role of human capital in corporate governance.

Aims of the Kingsmill report

The principal aims of the report are that:

1. Effective use is made of the skills and experience of both men and women to their benefit and to the benefit of businesses and the economy in terms of productivity and competitiveness.

2. The pay gap between men and women is significantly reduced within five years.

3. Practical guidelines on best practice are developed and promoted.

4. Understanding and awareness of existing equality legislation is increased amongst employers and individuals.

 

Document extract

Health check

To check whether your pay systems are gender-proofed carry out a simple health check:

1. Look at the share of your total pay bill going to men and women.

2. Compare it to the proportion of men and women you employ.

3. If there is a clear imbalance you will need to investigate why.

A headline pay gap may not indicate a substantial equal pay problem (though averages may conceal individual problems). An organisation will have to explore why there are differences, particularly between men and women of the same grade, and what action they should take. Basic pay scales may be equal but the dispersal of bonuses and other benefits unequal. There may be clustering of women in lower grades and levels to the detriment of the whole business.

Now ask yourself some key questions:

  • Are your pay packages, including access to bonuses, the same for men and women?

  • Is your pay reviewed centrally or bargained individually?
  • Are women clustered in lower paid jobs or grades?
  • Is there informal job segregation between men and women in different sectors or areas of work?
  • Is the take up of job share, part time of work life balance options distributed equally between men and women, and does exercising these options affect pay or promotion prospects?
  • Are part timers paid pro rata to full timers?
  • And most importantly what effect does this have on your business performance?


Source: www.kingsmillreview.gov.uk

Want to know more?

For more details about the Kingsmill review jump to . . .

www.kingsmillreview.gov.uk

Posted 5 September 2001