Gender Pay Gap Reporting Changes: Are You Prepared?

As we approach June 2024, ROI businesses must turn their attention to an increasingly relevant issue – the gender pay gap. The need for accurate and timely submissions of gender pay gap data is not just a statutory requirement; it’s a testament to a company’s commitment to proactively taking measures to consider and improve diversity, inclusion and fairness in the workplace.

Gender pay gap reporting plays a crucial role in promoting accountability, fostering equality, and driving positive change towards more inclusive and equitable workplaces. Through reporting on the gender pay gap employers help to bring transparency to pay disparities between organisaions and industries, address inequality and pave the way to promoting diversity and inclusion. Closing the gender pay gap can have positive economic effects at both the individual and societal levels. When women are paid fairly, they have more financial resources to invest in themselves, their families, and their communities, which can contribute to overall economic growth and stability.

Gender Pay Gap Requirements for Employers

The Gender Pay Gap Information Act 2021 (the “Act”) was signed into law on 13 July 2021. The Act amends the Employment Equality Acts 1998 to 2015 in the form of the Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 (the “Regulations”). The mandatory gender pay gap reporting obligations apply from 2022 to all employers with 250+ employees.  Employers with 150 or more employees must complete the report in 2024 and employers with 50 or more employees in 2025.

Employers must choose a ‘snapshot’ date in June of the relevant reporting year. They then have up to six months to prepare their calculations before the reporting deadline which is set at six months following the snapshot date. The remuneration data on which the calculations for reporting are based will reflect employees’ remuneration for the 12-month period that precedes the chosen snapshot date.

Gender Pay Gap Reporting Guidance

The process requires detailed data analysis, which can be overwhelming without the right tools and expertise. Reporting isn’t just about presenting numbers; it’s about understanding and communicating what these figures signify. This involves looking beyond mere pay and benefits, considering broader people management practices, and exploring external factors influencing gender representation in certain professions​​​​.

Employers must calculate the below:

• Mean hourly remuneration gap
• Median hourly remuneration gap
• Mean bonus remuneration gap
• Median bonus remuneration gap
• Mean hourly remuneration gap of part-time employees
• Median hourly remuneration gap of part-time employees
• Mean hourly remuneration gap of temporary contract employees
• Median hourly remuneration gap of temporary contract employees
• % of male employees who were paid bonus remuneration & % of female employees who were paid bonus remuneration
• % of male employees who received benefits in kind & % of female employees who received benefits in kind
• Percentage of males and females when divided into four quartiles ordered from lowest to highest pay
• Lower remuneration quartile pay band
• Lower middle remuneration quartile pay band
• Upper middle remuneration quartile pay band
• Upper remuneration quartile pay band

In addition, where any pay gaps are identified, employers must set out the reasons for this and the measures (if any) being taken, or proposed to be taken, to eliminate or reduce any such pay gaps.

Your Gender Pay Gap data should be used for more than just compliance. It can be used to scrutinise and improve workplace practices, policies, and culture. This strategic approach requires a deep dive into the people and pay data, focusing on specific groups like older women workers, those in male-dominated occupations, and higher-earning women​​.

Gender Pay Gap Service

Think People understand the complexities and challenges of the gender pay gap submission. We have the expertise and resources to help you navigate this process seamlessly. We can assist with getting your data into the right place, complete the analysis, and also help you craft a compelling narrative to comply with regulations and set you on track to focus your future strategic aims.

The gender pay gap submission due in June 2024 is not just about meeting a legal requirement, it’s an opportunity to reflect on and improve your company’s diversity and inclusion practices. It’s about taking a step towards a more equal and inclusive future and we would be happy to work with your organisation on this together.

Employers should also be aware of the potential risks of non-compliance, which can severely impact an organisation and the view of potential new employees. These repercussions include brand and reputational damage and the ability to attract new talent and also negatively impact current employees by ignoring legal requirements.

If you would like to discuss any aspect of the Gender Pay Gap reporting process, please contact Justyna Kowalska or your usual Think People contact here.