A substantial decline in UK companies failing to report their gender pay gap statistics indicates growing compliance and commitment towards gender equality.
- The number of non-compliant firms fell from 28 in 2022 to just eight in 2023, demonstrating a 71% decrease.
- The Equality and Human Rights Commission (EHRC) employed a diplomatic approach, achieving compliance without imposing fines.
- Approximately 7,900 private sector employers were required to disclose gender pay data in 2023.
- The EHRC’s strategy included employing alternative measures such as reminder letters and public disclosure of non-compliant companies.
The number of UK companies not reporting their gender pay gap significantly dropped from 28 in 2022 to just eight in 2023. This remarkable decrease, signaling a 71% reduction, reflects the enhanced commitment towards gender equality and transparency in pay among employers.
The EHRC, responsible for enforcing gender pay gap reporting rules, managed to achieve this high level of compliance through a strategic approach that did not involve punitive fines. Instead, they focused on raising awareness about the importance of equal pay and transparency, thereby encouraging companies to comply voluntarily.
In 2023, around 7,900 private sector employers with 250 or more employees were obliged to report their gender pay statistics. This requirement is part of a broader push by the EHRC to enhance transparency and address pay disparities in the workplace.
Notably, there were no repeat offenders among companies in the last two years, a development the EHRC attributes to its policy of publicly naming non-compliant companies. This tactic has proven effective in maintaining compliance as firms strive to avoid public scrutiny.
The EHRC’s method involved sending reminder letters and using social media to communicate the importance of compliance. Additionally, they maintained a public list of non-reporters to further pressure companies into compliance.
While no fines have been issued, the EHRC has utilized ‘Section 23’ agreements with some employers. These agreements require businesses to comply with the legislation under EHRC supervision, serving as an alternative to formal investigations.
The EHRC’s strategic approach has led to a promising increase in compliance with gender pay gap reporting, reflecting a shift towards greater pay transparency.
