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As new regulations have come into force regarding Gender Pay Gaps, this month, we have been advising our clients about how to recognise and tackle gender pay gaps within their organisations. Purple HR is a company with not one but two female MD’s and so we are passionately behind efforts to properly confront this national issue. We are keen for all businesses to understand the impact of the legislation.

We were shocked to see that despite previous government attempts at tackling the issue, the latest figures show that female staff are paid on average 33% less than their male counterparts, on top of this there exists a bonus gap of 66%!

To narrow this discrepancy, companies with 250 or more employees are now legally required to measure, and then report, how much they pay men and women. This includes over 9000 companies and nearly half the workforce in the UK. Part of an ongoing campaign, employers will now also need to provide an explanation for their gender pay gap.

Unfortunately, most organisations will have to some degree, a gender pay gap. With the arrival of new legislation, I think businesses have excellent opportunity to look deeper into this issue and address their gender pay gaps.

Firstly, we recommend undertaking a detailed review of your numbers to identify any gaps. You must then take voluntary steps towards explaining your number, before finding either justification or making adjustments to tackle apparent disparities. With all gender pay gap reports now available to the public, willingly addressing them will help you to protect your business.

Businesses with unequal pay, are at greater risk of internal disaffection, feelings of inequality and ultimately demotivated employees. It may also open your company to potential legal issues such as equal pay and discrimination claims. On the other hand, we want you to know that equal pay can increase business productivity, attract female talent, and improve the overall performance of your organisation.  So, it is vital to introduce change and keep your teams up to speed on all your efforts.

If you are concerned or unsure about how to proceed, we are available to help employers analyse their reports and make necessary changes through our fully outsourced HR department. We also offering help on how to best approach employees and discuss pay issues in the appropriate way.

To discuss Gender Pay Gaps further, please give us a call and we can guide you through what needs to be done.

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