PAY DISCRIMINATION
Employers urged to carry out equal pay reviews
If businesses want to avoid the introduction of new laws requiring them to check their pay systems are fair, they should act now and prove they are serious about equal pay, warns the Equal Opportunities Commission.
Julie Mellor, chair of the EOC said: "Employers can't afford to wait any longer before they act on equal pay. The only way to be sure they are not short-changing the women they employ is to carry out a pay review."
Why are equal pay reviews important?
One of the key challenges facing reward practitioners in the year ahead is to deal with potential sex bias in pay processes. Ignoring the issue is bad for business. Pay systems that short-change women employees risk costly equal pay claims.
As Mellor explains: "Doing a pay review will uncover any hidden discrimination in your pay systems. It will demonstrate commitment to equality and help prevent expensive and time-consuming equal pay claims that can tarnish your reputation. And this will help you attract and retain the best people for your business and cut your recruitment costs.
Compulsory pay reviews looming?
The momentum behind this issue is likely to keep equal pay reviews in the foreground for some time to come. There is, after all, a legal obligation to provide equal pay. Says Mellor: "Unless employers take voluntary action to stamp out pay discrimination regulation will be the only way forwards."
Want to know more?
A new leaflet for employers Are you providing equal pay? is now available on the EOC's web site along with other guidance on equal pay issues. Visit www.eoc.org.uk
New equal pay review software
e-reward.co.uk has launched a new software toolkit to help you through the first stage of data analysis required by the equal pay review process. Download a brochure and a brief user guide from our web site www.e-reward-data.co.uk/content/E-reviewToolKit.asp