Gender Pay Gap Reporting - What Does My Company Need To Do?

In the UK, gender pay gap reporting requires organisations with 250 employees or more to submit their pay data on a specific 'snapshot' date via the UK government website. The deadline for public sector organisations is the 30^th of March, while private and voluntary companies have until the 4^th of April.

Gender Pay Gap report: What you need to know

What is it?

Introduced back in 2017, this new set of regulations is aimed at improving (and eventually eliminating) the difference in pay experienced between women and men. 

Are you legally required to publish a GPG report?

If your organisation is in the private or voluntary sector and has a headcount of 250 by the 5^th of April of the current tax year, you're required to submit a report. This also applies to most public sector companies with a 250+ headcount by the 31^st of March.

If your organisation doesn’t currently meet these criteria, then you don’t need to submit a report this year.

When is the deadline for Gender Pay Gap reporting in the UK?

There are two deadlines for this that come up right before the start of the new tax year, as follows:

• Most public sector organisations - the 30^th of March

• All private and voluntary organisations - the 4^th of April

What are the Gender Pay Gap reporting requirements?

Organisations need to include a few different comparative data figures, including:

✅ Their mean and median gender hourly pay gap

✅ The mean and median gender bonus pay gap

✅ The proportion of men and women in each quartile pay band 

✅ The proportion of men who received a bonus payment vs the proportion of women who received one

Where do I submit my company’s report?

Your organisation should submit its data via the government website. 

Can I exclude any employees from my company’s report?

The rules around who can and who can’t be excluded from your GPG report can be tricky and complex. Employees who are part-time, on maternity leave, non-binary or international are subject to different rules. This includes contractors, too. If a large swath of your workforce is made up of contract workers or international, then you may want to reach out for specialist advice on how to put your report together. 

What happens if you don’t report your gender pay gap?

If you don’t comply, then your company will be in breach of the Equality Act 2010, leaving your organisation open to action by the Equality and Human Rights Commission (EHCR). There are several options this organisation can take to impose penalties on your business, depending on what kind of business it is and the nature of the breach. 

It’s also worth noting that, at a minimum, your organisation’s name could land on the Government Equalities office ‘name and shame’ list, affecting your brand reputation. 

Why is Gender pay gap reporting so important? Three key reasons  

Gender pay gaps can happen for a number of different reasons ranging from differences in role scope, seniority and education all the way to bias, discrimination and unequal opportunities. 

That’s why data plays a key role in closing gender pay gaps - it can help in identifying the root causes to be adressed. Still any one of these factors could be having a significant impact on employees morale, retention and productivity at your company. 

Of course, there is the morale case for granting better access to work and better opportunities. But it’s important not to glaze over the economic reasons for reporting your gender pay gap too: when women and men are paid equal, your business and the economy as a whole stand to benefit. Here are three key reasons why it pays to address your GPG.

You can attract (and keep) the best talent 

Now more than ever, inclusion and fair pay are front of mind for job candidates. There is a strong appetite and desire to understand employer gender pay gaps. And when we consider that women make up 50% of the talent pool, organisations can no longer afford to ignore what their own data says.

You can avoid costly tribunals and reputational damage 

Eliminating bias from pay can, in fact help drive down costs. Defending equal pay claims comes with a high legal price tag. Furthermore, it can lead to reputational damage in the form of bad press and and a negative employer brand image. Publishing your gender pay gap results, as well as a detailed narrative about how you plan to address these can help boost confidence in your brand.

You’ll help boost the economy

And isn’t that something that’s good for all businesses? Greater pay transparency promotes more open discussion among companies about gender equality, which in turn leads to more action. The economic benefits unlocked from this have the potential to be huge, lifting up women, men and businesses in the process. 

Bringing it to a close 

We’ve talked through what Gender Pay Gap reporting is and what your company needs to do before each deadline. We’ve also covered the reporting requirements and what happens if you fail to submit your report. Finally, we explored three key reasons why it's important to take your report findings seriously, reasons that can have a significant impact on the success of your business and the economy at large.

Remember, closing your GPG doesn’t happen in a day. It takes time to address the factors that led to pay inequality in the first place. It’s the actions that your business takes on a daily basis that will lead to better pay transparency and equity over the long run.