GENDER PAY GAP
Survey shows government “faces uphill struggle” to promote effective action on closing gender pay gap
Fewer than one in five (18%) private sector employers measure their gender pay gap, with the vast majority, and especially smaller employers, considering this unnecessary for their business. That’s one the main findings to emerge from the autumn 2009 CIPD/KPMG Labour Market Outlook survey, conducted by IPSOS Mori.
In the public sector, where equal pay monitoring is a statutory requirement, two in five (43%) employers only complete audits to "tick the necessary bureaucratic box rather than as part of an underlying effort to advance gender equality".
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The survey findings are likely to disappoint the government which has included provisions in its Equality Bill to require private and third sector organisations with more than 250 employees to report on gender pay gaps if too few are doing so voluntarily by 2013.
The minority of employers that do measure their pay gap report that it provides useful insights and benchmarking data (60%) and helps inform pay reviews before they take place (43%). However, the survey finds that the average cost of conducting a gender pay audit is more than £5,000 – 50 times higher than government estimates.
A final word
“Judging by these survey findings the government faces an uphill struggle in its efforts to change employer attitudes to closing the gender pay gap, which the latest ONS figures will undoubtedly show still remains far too wide. The bulk of private sector employers appear complacent about the gap – especially smaller employers who won’t in any case be affected by the reporting provisions of the Equality Bill – while many public sector employers seem more concerned about complying with their statutory reporting duty than driving genuine gender equality in the workplace. The findings overall suggest that compulsory pay audits are at best a blunt instrument for promoting effective action on closing the gender pay gap and highlight the need for government to instead focus on helping employers in all sectors understand the business benefits of tackling unfair treatment on pay.” - Dianah Worman, CIPD Diversity Adviser.
“We would encourage all employers to investigate their pay structures from the perspective of fairness and equality whether or not legislation is introduced to this effect. Equal pay audits can help to tangibly measure the achievement of fairness, and we believe that a fair approach to reward and recognition has a positive impact on employee engagement. Leading businesses examine their pay gaps not because of government, but because they understand the reputational and legal damage in not getting it right.” - Ingrid Waterfield, KPMG Head of Reward.
--> The Equality Bill, which is currently making its way through Parliament, will introduce provisions to enforce gender pay reporting on private and third sector organisations of more than 250 employees. The government says it will not make reporting compulsory until 2013 if voluntary progress is deemed to be insufficient.
--> The cost of reporting on the gender pay gap was estimated to be £5,105 in the CIPD/KPMG Labour Market Outlook. This is higher than the government’s estimation. You can view the Impact Assessment at: www.equalities.gov.uk/pdf/Equality Bill Impact As.pdf.
Want to know more?
Title: CIPD/KPMG Labour Market Outlook survey Autumn 2009, conducted by IPSOS Mori.
Availability: You can download the survey from the CIPD web site at www.cipd.co.uk/subjects/hrpract/hrtrends/_qtrends.htm?IsSrchRes=1.
The Chartered Institute of Personnel and Development (CIPD) is “Europe’s largest HR and development professional body with over 135,000 members, supporting and developing those responsible for the management and development of people within organisations”. To find out more visit www.cipd.co.uk.
KPMG is a “global network of professional firms providing audit, tax, and advisory services”. It operates in 144 countries and has more than 104,000 professionals working in member firms around the world. More details are available at www.kpmg.co.uk.