Spotlight on the gender pay gap: the need to demonstrate change

With the second deadline approaching, we provide an update on the gender pay gap and what progress has been made in the first year. We also examine how the initiative has impacted the wider make-up of the workforce. Billed as being the biggest change in the legislative framework to buoy the progress of women, since the Equal Pay Act in 1970 made it illegal to pay different sexes different wages for the same job, employers approach the second deadline requiring them to publish their gender pay gap data. The reporting deadline requiring all companies employing more than 250 people to disclose information about their gender pay gap is 30 March for public companies and 4 April for private companies.

How has the initiative impacted the wider workforce?

The legal requirement for companies to publish this insight into pay practices is part of a wider movement to promote transparency and fairness within all companies when it comes to their pay practices and approach to diversity.

Other initiatives such as the CEO pay ratio and the ethnicity pay gap reporting are a part of the wider push for equality. 2018 was a strong year in terms of diverse representation at leadership level, with The Telegraph and more recently, The Financial Times appointing dedicated Heads of Diversity within their organisations.

We are also increasingly discussing the importance of staff being reflective of the local area’s demographic make-up in order for the labour pool to most effectively understand and serve local areas. This is especially important in relation to sectors such as Housing Associations. Organisations with this social mission and focus on local communities are increasingly seeking to ensure that they draw resources from diverse local areas, seeking people with local understanding and insight.

More than a tick box exercise, diversity can enable employers to tap into broader talent pools. Diversity itself is a factor in recruitment, attracting talented individuals who are looking for these figures in order to find companies with inclusive cultures.

Future-proofing your business

Increasingly job seekers are holding prospective employers to account. Indeed, diversity and inclusion initiatives are being asked for as part of pitches and tenders. Diversity being used to attract and retain more internationally and culturally diverse voices goes beyond surface-level engagement and creates a cultural shift in authentically implementing inclusiveness within business. A diverse and accepting environment can support retention by offering security and ensuring all voices are heard, whilst signaling an impetus on innovation, by widening the skill set available and future-proofing organisations.

Develop equitable strategies to promote diversity and equality in your workplace by calling us today.