International Women’s Week launches today (March 8 2021) and here at IDR we are reflecting on the topic of pay gap reporting.
Firms with 250+ employees are required to calculate and publish statistics on their gender pay gap after a campaign led by the Fawcett Society. IDR’s 2020 research ‘Pay Planning for 2021: The New Normal?’ found that 90% of respondents had reported their gender pay gap figures, despite the suspension of reporting in 2020 and the impacts of the pandemic.
Listed firms must also report on their executive pay ratios. A smaller number of respondents (39%) had calculated the executive pay ratio for the same period.
While there are no specific regulations requiring firms to publish their ethnicity pay gaps, just under a fifth of respondents (17%) with more than 250 employees had calculated their gaps in this area so far. A third of these have shared results internally with staff, though just two companies have published the findings publicly. A Government consultation on the matter closed at the end of 2019, the results of which were expected at the end of 2020 but are yet to materialise. Since then, the BBC has learned that most employers that responded to the original consultation wanted regulations enacted.
IDR are keen to understand what your organisation has been doing with regards to pay gap reporting, particularly in light of 2021's extension. This survey aims to collect data on if, and how, pay gap figures are being calculated and reported; what provisions/action plans are in place to reduce large pay gaps; and success stories for any employers that have managed to identify and reduce pay gaps.
This can be a sensitive subject area for some employers and so the results of this research will not be directly attributed to any individual employer. We will however share the summary results of this research with all participants, which should provide a valuable resource for anyone who has pay gap reporting on the 2021 and 2022 HR agenda.
Please complete the survey as fully as possible by 9 April 2021.