Pay gap reporting goes beyond meeting legal requirements. It’s a chance to gain insights and drive change within your organization. Many HR teams are preparing to submit their reports as the deadlines for both public and private sector employers approaches – 30th March for the former, 4th April for the latter. Pay gap reporting is not just about compliance. It can also reveal more than you think.
Gender pay reporting is different from equal pay which guarantees men and women are paid equally for equal work in accordance with the Equality Act 2010
Pay gap reporting, unlike an equal pay audit, examines broader disparities between genders in terms of average pay. This is influenced by organizational structures, career advancement barriers and occupational choices.
Pay gaps are often observed in organisations where men tend to dominate the higher-paid senior positions and women tend to concentrate on lower- or mid-level roles. Pay gap reporting requires that companies with more than 250 employees report their median and mean gender pay gaps. This creates transparency and encourages action to close the gaps.
Organisations can analyse pay gaps and:
- Understanding the representation of women and men at different levels.
- Find out if there are any imbalances between hiring, career advancement, and promotion opportunities
- Show commitment to fair payment practices and foster trust among employees
Transparency, fairness and honesty are not optional anymore – these are the essentials for attracting top talent and keeping them.
Why stop at meeting your reporting deadlines? The use of advanced tools can improve your reporting by providing faster and more in-depth analysis. These tools, powered by AI regression models go beyond surface data to identify the key drivers and quantify the unexplained portion of your pay gap.
Understanding the “why” behind your pay gap will allow you to model ‘what-if’ scenarios that can be used to test the impact of salary adjustments or recruitment strategies. You can then make more informed decisions to reduce the pay gap and improve employee morale.
In the growing focus on pay transparency, organizations may be required to report gaps in pay based on ethnicity or disability. By leveraging analytics, you can position your organization to meet future requirements.
Transparency, fairness and honesty are not optional anymore – they’re essential to attracting and keeping top talent. Demonstrating the commitment of your organisation to equity will enhance your employer brand, and build trust among your employees. Advanced analytics tools automate the process and save you time. They also reduce costs. This allows you to focus your efforts on strategic goals.
Do not wait for the deadlines to arrive. Transform your pay gap reporting today using tools that will help you move beyond compliance and towards meaningful change.
Brightmine Pay Equity Analytics simplifies your reporting and provides actionable insights. Download “Gender Pay Gap: An Expert’s Guide” for more information on this topic.
