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Government publishes practical guides on Gender Pay Gap (GPG) reporting

Government publishes practical guides on GPG reporting

Key takeaways from the guidance published by the Government.

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Director and Solicitor, Employment Legal Services

KPMG in the UK

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The Government recently published two practical guides to aid organisations in taking GPG reporting beyond simply reporting the required figures:

The guidance is vocal in supporting the Government’s aim to use GPG reporting as a tool to close the gap between men’s and women’s earnings.

What does the guidance cover?

The ‘eight ways’ guidance poses eight questions which employers can use to gain an insight into their GPG.

These cover topics ranging from promotions, leaving rates and performance scores to support for caring responsibilities.

Each question, such as ‘Is there gender imbalance in your promotions?’ and ‘Do men and women leave your organisation at different rates?’ is followed by a brief explanation outlining how the particular imbalance manifests itself in organisations and how it can be identified.

Most importantly, the guidance suggests concrete actions employers can take to address the individual issue.

The eight key areas and questions the guidance focuses on are:

  • Getting ‘stuck’ at certain levels;
  • Promotions;
  • Recruitment;
  • Leaving rates;
  • Pay;
  • Performance scores;
  • Part-time working; and
  • Caring responsibilities.

Although a narrative or action plan to tackle gender pay gap is not currently a requirement, this guidance pushes employers to seriously consider their GPG, and address its root causes.

The ‘four steps’ guidance makes clear the Government’s intention for GPG reporting to be a tool to bring about change. Whereas the ‘eight ways’ guidance focuses on understanding the gap and exemplifying ways to address it, this guidance directly addresses how an action plan can be developed.

The four steps cover:

  1. Analysing data and identifying actions;
  2. Consulting and engaging relevant stakeholders;
  3. Revising, assessing and embedding the action plan; and
  4. Timing.

Under step 2, particular emphasis is placed on the ‘pivotal’ role of human resources directors and early employee engagement alongside senior stakeholders.

The ‘four steps’ guidance links to a further publication: Evidence-based actions for employers, which outlines concrete actions employers can take to close the GPG, ranging from using structured interviews for recruitment and promotions, to encouraging salary negotiation by showing salary ranges.

What should employers take from the guidance?

If an organisation wishes to address its GPG then the guidance should assist, as it is both succinct and informative.

Employers can put action plans in place to tackle the GPG using the ‘four steps’ guidance, and analyse their GPG data.

We are in agreement with the Government that reporting the GPG should only be the start of employers closing any GPG.

How KPMG can help

Employment Legal Services can assist organisations in complying with their obligation to report GPG, understand what is causing it and the steps that can be taken to address it.

Please contact a member of the Employment Legal Services Team for further information at employersclub@kpmg.co.uk.

Additional insights – recommended reading

Lessons learnt from GPG reporting: Government reacts to BEIS Committee report

The Government responds to the Business Energy and Industrial Strategy (BEIS) Committee’s Gender Pay Gap (GPG) reporting recommendations.

Ethnicity pay reporting – KPMG’s consultation response

KPMG publishes its response to the Government’s consultation on ethnicity pay reporting.

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