How to conduct equal pay reviews

PAY DISCRIMINATION

How to conduct equal pay reviews

Only an equal pay review can ensure that your organisation's reward systems are free of sex bias and are legally compliant. E-reward.co.uk has published detailed guidelines on how to conduct equal pay reviews, complete with checklists to help you pinpoint the causes of inequality.

Ignoring pay discrimination in reward systems is bad for business. Pay systems that short-change women employees risk costly equal pay claims. In 2001, there were nearly 9,000 employment tribunal claims relating to equal pay and the average award was over £19,000.

A new report by e-reward.co.uk helps you understand equal pay law and looks at two legal developments that could mean an employers' failure to carry out an equal pay review will increase the risk of successful equal pay complaints. It outlines a systematic process by which you can analyse your employees' pay and take remedial action to remove pay gaps between men and women.

Lack of awareness amongst employers

Sadly, organisations that have carried out an equal pay review are few and far between. All too many are uneasy - some deeply so - about what might emerge from a detailed investigation of their pay policies and practices, while others do not believe they have a pay problem.

As Gary Bowker, a senior employment law consultant at Mercer Human Resource Consulting, has said: "If you ask a group of employers if they have an equal pay problem, the chances are that the vast majority will say that they do not. Ask them whether they have carried out an equal pay review and most will say no. So how do they know they are legally compliant? They don’t."

What you will find in this e-reward.co.uk report

Spread across 58 pages (17,000 words) this in-depth report contains the following chapters:

Chapter 1: Introduction

The context
What is an equal pay review?
EOC guidelines for equal pay reviews
Benefits of conducting an equal pay review
Lack of awareness amongst employers

Chapter 2: Pressures for change

Revised code of practice
Equal pay questionnaire
Pressures for tackling pay inequality

Chapter 3: Equal pay - the legal framework

By Gary Bowker, Mercer Human Resource Consulting
European legislation
British legislation
Equal pay for equal work
Ten equal pay myths

Chapter 4: e-reward.co.uk guidelines on how to conduct equal pay reviews

Focus of the review
Methodology - the three-stage review process
Stage 1 - Analysis
Focusing the Stage 1 analysis
Stage 2 - Diagnosis
Stage 3 - Action
Factors influencing pay gaps, data analyses and remedial actions

Chapter 5: e-reward.co.uk checklists for reviewing pay systems

Diagnostic review
Pay, grading and progression checklist
Job evaluation checklist
Merit pay checklist
Additional payments, allowances and benefits checklist
Guidance from the Equal Opportunities Commission

Appendices

How the e-review toolkit supports the equal pay review process
An example of an equal pay policy

Resources

Official guidance - what's available?
Reports, articles and other sources of information


Want to know more?

Title: "How to conduct equal pay reviews", E-research, issue no. 8, February 2003, published by e-reward.co.uk.

Price: The report is available from e-reward.co.uk at £50 + VAT. Or you can receive it as part of an annual subscription to E-research and we will send you 11 issues of our monthly report for £200 + VAT.

Availability: Click on "Research Reports" on the right-hand navigation panel of the e-reward.co.uk web site and complete the simple online subscription form.

For more details, email: paul@e-reward.co.uk