With new gender pay reporting regulations being put in place in April 2017, Kimberley Dondo finds that over half are not prepared to monitor this
Even though proposals to introduce mandatory gender pay reporting regulations were announced in October 2015, XpertHR found that only 6.2% of employers had any formal mechanisms in place to monitor their gender pay gap before the legislation was announced.
There seems to be confusion as employers have admitted they don’t know how or when they will publish the results of the exercise. The regulations state that information must appear on a public website and remain there for three years. Only four out of 10 organisations said that they had conducted a trial run of the calculations that will be required to comply with the law and 35.5% expect to do so before April 2017.
Employers in the public sector seem to have a better handle on how to monitor the gender pay gap with 27.3% of organisations having already undertaken formal monitoring and 45.5% applying a more informal method of monitoring.
There was also disparity amongst employers about who would be responsible for data collection and reporting.
A third of organisations plan to give this task to their chief executive (34.1%) and almost a third said it would fall to their HR director (30.4%). Smaller numbers intend the finance director to do this (9.4%), while around one in four (23.2%) don’t yet know who will take on the responsibility.
XpertHR’s Content Director Mark Crail said: “This survey shines a light on the challenges involved in gender pay gap reporting. It highlights that most organisations aren’t yet ready to tackle the practical implications of the reporting and the requirements of the Regulations. Most don’t yet know how or when they will publish their metrics and around a quarter plan to delay the publication for as long as possible.”
In any case employers must publish their first gender pay gap metrics by April 2018. One in four organisations intend to delay this as close to the deadline as possible. Whilst this is a highly complex area for organisations to get right and there are potential legal penalties for those who fail to comply, help and guidance is available.
Regardless of the uncertainty about what is intended to happen, XpertHR found that two thirds of employers are willing rectify any pay gap that is identified. Despite this a small contingent (5%) said their organisation would not commit to closing the gender pay gap.