FEATURE: TAX & ACCOUNTING
Mind the gender pay gap - what you need to know
From April 2017, Gender Pay Gap Reporting (GPG) will become mandatory for all employers with 250 employees or more. Organisations will have to reveal:
1. The percentage difference in male and female pay on a mean and median basis;
2. The percentage difference in bonus paid to men and women on a mean and median basis, and what proportion of the male and female workforce are paid a bonus; and
3. Exactly how many men and women sit in each pay quartile within the organisation.
Some employers will be tempted to view the new obligation as just another compliance procedure for the Human Resources Director. But gender pay gap reporting has much wider implications, with consequences for recruitment practices, remuneration polices, employee relations, talent retention and public reputation. Organisations reporting a high gender pay gap, for example, could be seen as less than fully committed to fair pay, promotion and development opportunities for women. This will make them less attractive as employers, undermine their ability to recruit and could also have a negative impact on how their brands are seen in the wider market place.
So the stakes are high and, for some organisations, the process of ‘The process
of preparing a gender pay gap report could reveal some sobering truths’
preparing a gender pay gap report could reveal some sobering truths. Time is of the essence. Organisations that start preparing for their first gender pay gap reports early will have the opportunity to address any issues raised before publically disclosing their gender pay gap. Those leaving preparations too late will find themselves addressing these issues in the public domain, under the watchful eye of the media, trade unions, their employees and their customers. In short, if your organisation wants to use mandatory gender pay gap reporting to understand, improve and even showcase your success in providing fair development and promotion opportunities for men and women, the time to start planning your strategy is now. Our view is that it will take up to twelve months to become familiar with the proposed reporting requirements.
When is the deadline?
April 2018 is the deadline for publishing your first gender pay gap report, but you can publish much earlier if you want. When to publish will be a strategic decision for your
organisation and will depend on factors such as brand reputation management, media influence, and your remuneration and reporting cycles.
Who to involve? Gender pay gap reporting presents a wide range of challenges and many fall well beyond the typical remit of the human resources manager or director. These challenges will need input and support from across an organisation, so it’s vital to get stakeholders on board early and make sure they are fully aware of the challenges.
Find out more Visit
www.kpmg.co.uk Contact: KPMG in Plymouth -
Andrew.Gordon@KPMG.co.uk
24 Chamber Profile March/April 2017
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