Companies have the required tools but there are still gaps in the process.
The new gender pay gap regulations are expected to come in 2017 and 91% of companies feel prepared. According to a survey by Willis Towers Watson, 81% of companies also feel they have the correct tools to calculate the pay gap.
Approximately two thirds (63%) of firms have taken action to prepare for the new legislation, with only 16% having needed to change their reward programmes. The research also finds that a large number of companies have well documented policies on setting base pay (77%), performance management (94%) and work life balance (68%).
On the other hand, the research suggests that despite a large percentage of companies having the required tools, only a third (35%) currently have all the data they need. Additionally, less than a third (29%) have recently run an equal-pay audit, although 77% are planning to within the next year.
Tom Hellier, GB Practice Lead, Rewards at Willis Towers Watson, says: “The survey shows the first challenge for most employers will be accessing the data they need to run the required reports. For most companies, base pay figures are easy to access and analyse, but to comply with the legislation the same will need to be true of total pay data, the various components of which are often scattered across multiple systems.
“The reporting requirement helps nudge companies in a direction that many were already moving towards. However, it is important to acknowledge that gender pay gaps are not just the result of pay decisions and design. They are just as likely to be indicative of culture, talent management and diversity issues.
“Elements such as recruitment and succession planning need consideration to understand any unconscious bias in high potential candidate selection or a gender imbalance for recruitment. This type of potential issue needs addressing in all organisations before we will see a more significant closure of the gender pay gap.”
To find out more about gender pay and the new legislation, come along to Reward Live to hear Fiona Hathorn, managing director at Women on Boards, discuss the pay picture. Her session will be at 12.35pm on the second day of the event.
Reward Live will be on 11-12 May at Edgbaston Cricket Ground, Birmingham. For more details, CLICK HERE