EQUAL PAY AUDITS
Employers shy away from equal pay audits
A quarter of private sector organisations believe equal pay audits are "unnecessary", according to research by IRS. Of 103 private sector employers polled, 24% said salary structures that rewarded workers fairly regardless of their gender were attainable without formal audits.
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But, of those that have conducted a formal equal pay audit, two in three found that men were being paid more than women for equal work of equal value within their organisation. Report author Noelle Murphy said: “However, our research offers evidence that even when aware of pay inequalities, some employers do little - and in some cases nothing - to redress the balance.”
Key survey results
Two in three respondents feel that equal pay audits should not be mandatory for private sector employers.
Even so, three-quarters of respondents had made some effort on the equal pay front, albeit mostly on an informal basis.
The research indicates that employers recognise there are issues relating to equal pay within their organisation. While just 5% of all respondents agree with the statement: "There is a significant gender pay gap in my organisation", a further 29% are unable to disagree with the statement - suggesting employers have concerns about the equality of pay within their organisation.
Reluctance to carry out equal pay reviews is widespread, the survey says, with six in ten firms insisting they should not be mandatory for private sector employers.
A final word
"The right to equal pay for equal work for men and women is enshrined in law through the Equal Pay Act. However, our research indicates that not all employees are enjoying equal pay for work of equal value. Worryingly, employers do not seem motivated to proactively address pay inequality within their organisations." – IRS report author Noelle Murphy.
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Title: “Equal pay audits in the private sector”, IRS Employment Review 907, 10 October 2008.
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