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Nearly one fifth of large employers don’t carry out gender pay gap reporting, despite legal requirement

The latest findings from the CIPD’s Pay, performance and transparency 2024 report, supported by ADP, a global technology company providing human capital management (HCM) solutions, show that an alarming number of employers are not conducting their gender pay gap reporting in line with government requirements.

Almost a fifth (17 per cent) of large employers (250+ employees) said they haven’t carried out gender pay gap reporting and 18 per cent said they didn’t even know whether their organisations had conducted reporting.

The organisations most likely to admit to not carrying out gender pay reporting in the 12 months to October 2023 are those employing between 250 and 499 people (29 per cent), despite it being a legal requirement for all businesses with 250 or more employees in England, Scotland, and Wales.

As a result, the CIPD is calling on employers to help tackle discrimination and inequalities at work by reporting on their gender pay gap data and analysing that data to create a narrative and action plan.

With pay gaps remaining a major challenge across the UK, the CIPD says it’s important that employers understand the causes of their gender pay gap, including looking at how people are recruited, managed, developed, and rewarded, to ensure a fair approach. With this insight, a narrative can be created to explain the numbers and an action plan can be developed to address inequalities.

Charles Cotton, Senior Reward Adviser at the CIPD, the professional body for HR and people development, said:  “What gets measured, gets managed, and with just over a month until the end of the gender pay gap reporting year, employers need to get ready to report. We encourage employers to not only calculate their gender pay gap data, but to really understand the reasons for it, and act on them wherever possible.”

While gender pay gap reporting is legally required for large employers, and is vital for gender equality and progression, there are other areas of inequality where reporting on pay disparities can bring much needed transparency, for example disability and ethnicity pay reporting.

The report also found that, in the year to October 2023, 40 per cent of large employers had already carried out an analysis of their ethnicity pay data, 35 per cent had not, while a quarter didn’t know.  Over a quarter (27 per cent) of large employers had conducted a disability pay report, 46 per cent had not and 28 per cent didn’t know.

To read the report click here.

Eptura 2023 Workplace Index 

Over the past year, Eptura has used proprietary data and commissioned research to explore how business leaders can balance opposing demands.

In this final summary report on the state of the workplace in 2023, the global worktech leader looks at the key insights that will shape the world of work in 2024 and beyond.

For the Q4 edition of the 2023 Workplace Index, Eptura updated its proprietary data across four demands:

  • Freedom and Connection
  • Value creation and Cost Control
  • Flexibility and Certainty
  • CO2 Targets and Costs

To download the report click here.

About Sarah OBeirne

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