A significant number of employers fail to meet legal obligations for gender pay gap reporting.
- Approximately 17% of large employers have not conducted required gender pay gap reports.
- Some employers remain unaware of whether they fulfill these reporting obligations.
- CIPD emphasizes the necessity for analyzing and addressing gender pay inequalities.
- Beyond gender, pay disparity issues extend to ethnicity and disability reporting.
Nearly one-fifth of large employers, specifically those with 250 or more employees, are not fulfilling the legal requirement to report on gender pay gaps. This finding is alarming in light of the existing legislative frameworks aimed at promoting gender equality within the workplace. With 17% of these employers admitting to not conducting any gender pay gap reporting, and 18% unsure of their status, it demonstrates a significant oversight in corporate compliance with government mandates.
The report highlights that smaller large employers, those with employee numbers ranging from 250 to 499, exhibit the highest lapse in reporting. This is particularly concerning as transparency in pay is crucial for tackling discrimination and fostering equality. The CIPD urges employers to not only report the data but also analyze it to create actionable plans to address any disparities.
‘What gets measured, gets managed,’ said Charles Cotton, Senior Reward Adviser at the CIPD. He stressed the importance for companies to understand the underlying factors contributing to their pay gaps and to take remedial actions. Gender pay gap reporting is not only a tool for compliance but is integral to cultivating fair workplace practices, attracting talent, and demonstrating a commitment to equality.
Sirsha Haldar of ADP reinforces the need for credible and accurate payroll data to correctly identify and address pay inconsistencies. She points out that failure to do so can harm employee morale, loyalty, and a company’s reputation, especially among younger, more equality-conscious demographics. The balance between transparency and confidentiality in sharing salary information is also stressed as vital for trust within teams.
While the focus is on the legal necessity of gender pay gap reporting, the report also brings attention to other types of pay disparity analyses, such as those based on ethnicity and disability, even though they are not mandated by law. These reports reveal that a significant portion of employers fail to address potential discrimination within these areas, which is essential not only for compliance but also for supporting inclusive and equitable workplace environments.
Addressing gender, ethnicity, and disability pay disparities is vital for a fair and inclusive workforce.
