Do you pay men more than women, or do you employ more men?
In February, the government released for consultation proposed rules that will require all companies with more than 250 UK employees to publish:
1. The difference in mean and median ‘pay’ between all male and female employees (part time, full time, all grades and levels)
2. The proportion of men and women in each ‘pay quartile’ (total pay including bonus, calculated as an hourly equivalent rate on the relevant date of 30 April 2017)
3. The difference in mean ‘bonus’ paid to male and female employees during the year
4. The proportion of men and women receiving bonuses (‘bonus’ refers to short and long term incentive payments paid in the 12 months prior to 30 April 2017).
The consultation …show more content…
In our view there are four key categories of risks for UK companies. We expect there will be significant press coverage of this issue in 2017 and 2018 as companies submit data and the government’s league tables are published. The first batch of stories is likely to focus on the overall pay gap. The danger is that a pay gap is perceived or reported to imply an equal pay problem (i.e. that men are paid more than women in comparable roles) when in fact it may reflect more male employees or more men in senior, more highly paid roles.
The second batch of press articles is likely to focus on the broader, longer-term issue of diversity in more senior roles. The pay quartile statistic will reveal many fewer women in senior roles at many companies. The challenge will be to address this, placing greater pressure on succession and talent planning processes. Remember too that a government review currently underway led by Sir Philip Hampton will result in targets for women in senior roles later this year.
What to …show more content…
• Do you have well-documented practices in terms of performance management, job evaluation, promotion criteria, job moves and pay?
Willis Towers Watson’s view
We fully support the intention of the proposed legislation and the government’s objective of eliminating the gender pay gap. The format of the reporting, and the use of league tables will provide a number of short-term challenges for many companies, particularly those with male-dominated workforces.
We see these challenges as being immediately pay related, but followed by much broader, further reaching issues around ensuring a pipeline of women that is attracted to and able to obtain more senior roles in the organisation.
The time to start preparing for these challenges is now. We recommend you:
• Inform leadership of the nature and risks of this legislation
• Put together a team to start generating preliminary numbers and understanding their implications
• Review equal pay – make sure you can demonstrate that pay for men and women in comparable roles (those graded or sized the same) is not skewed by gender
• Start preparing your defence – for many companies there will be good reasons for the current position. These will need to be communicated to investors and the press and public in ways that help tell an accurate
In February, the government released for consultation proposed rules that will require all companies with more than 250 UK employees to publish:
1. The difference in mean and median ‘pay’ between all male and female employees (part time, full time, all grades and levels)
2. The proportion of men and women in each ‘pay quartile’ (total pay including bonus, calculated as an hourly equivalent rate on the relevant date of 30 April 2017)
3. The difference in mean ‘bonus’ paid to male and female employees during the year
4. The proportion of men and women receiving bonuses (‘bonus’ refers to short and long term incentive payments paid in the 12 months prior to 30 April 2017).
The consultation …show more content…
In our view there are four key categories of risks for UK companies. We expect there will be significant press coverage of this issue in 2017 and 2018 as companies submit data and the government’s league tables are published. The first batch of stories is likely to focus on the overall pay gap. The danger is that a pay gap is perceived or reported to imply an equal pay problem (i.e. that men are paid more than women in comparable roles) when in fact it may reflect more male employees or more men in senior, more highly paid roles.
The second batch of press articles is likely to focus on the broader, longer-term issue of diversity in more senior roles. The pay quartile statistic will reveal many fewer women in senior roles at many companies. The challenge will be to address this, placing greater pressure on succession and talent planning processes. Remember too that a government review currently underway led by Sir Philip Hampton will result in targets for women in senior roles later this year.
What to …show more content…
• Do you have well-documented practices in terms of performance management, job evaluation, promotion criteria, job moves and pay?
Willis Towers Watson’s view
We fully support the intention of the proposed legislation and the government’s objective of eliminating the gender pay gap. The format of the reporting, and the use of league tables will provide a number of short-term challenges for many companies, particularly those with male-dominated workforces.
We see these challenges as being immediately pay related, but followed by much broader, further reaching issues around ensuring a pipeline of women that is attracted to and able to obtain more senior roles in the organisation.
The time to start preparing for these challenges is now. We recommend you:
• Inform leadership of the nature and risks of this legislation
• Put together a team to start generating preliminary numbers and understanding their implications
• Review equal pay – make sure you can demonstrate that pay for men and women in comparable roles (those graded or sized the same) is not skewed by gender
• Start preparing your defence – for many companies there will be good reasons for the current position. These will need to be communicated to investors and the press and public in ways that help tell an accurate