What is the Gender Pay Gap?
The gender pay gap is the difference between the pay men typically receive in an organisation compared to women. It should not be confused with equal pay. Equal pay is about the pay differences between men and women for “like work”, “work of equal value” or where “work performed is of a similar nature.”
So, while an employer may not have an equal pay issue, a gender pay gap may still exist. Gender pay looks at the overall view irrespective of roles and level of seniority, whereas equal pay looks at role definition, equal level of responsibility and accountability, and ensures there is fairness, consistency and equality in the way all individuals are treated throughout the organisation.
What do the new regulations mean?
In Ireland, it is estimated that the gender pay gap is currently around 14%.
Later this year, organisations with over 250 employees will be legally required to publicise their gender pay gaps, making them accessible on their own website and a Government portal.
The draft legislation requires employers to disclose statistics on the hourly pay and bonus differences between males and females, and the differences in male and female working patterns such as part-time and temporary. Employers will also need to report the proportion of male and female employees in receipt of benefits in kind and bonuses. The legislation proposes that employers will either have to report on the gender pay gap between male and female employees across four defined pay bands or by their job classification (senior managers, other managers, professionals, technicians etc.).
Are you prepared?
Relevant businesses must comply with the regulations to avoid penalties. It is prudent to act now, be prepared, and start thinking about:
- collating the required elements of pay
- calculating the gender pay gap statistics early to identify and understand the risks
- a plan to present and communicate the findings
- being equipped to address and manage the risks
- ensuring you have a suitable job classification system in place
How can Graphite HRM help?
2019 saw companies in the UK complete the second year of mandatory gender pay reporting. As one of Ireland’s leading HR and employment law support services, Graphite HRM has partnered with the UK-based firm Croner to provide a one-stop gender pay reporting service.
As the UK’s most experienced Reward, HR and employment law specialists with over 45 years in the pay arena, Croner provides a tried and tested, impartial gender pay reporting service that includes:
- Analysis of the required elements of pay to meet regulations
- Generating gender pay statistics
- A report that illustrates:
- The mean and median hourly pay and bonus gaps that exist between male and female employees
- The distribution of males and females across four pay bands
- The proportion of males and females in receipt of benefits in kind and bonuses
- Additional analysis to give more context to the results. For example, by job grade, department, division, directorate
- Access to the employment team to discuss the risks to your business and remedial action to avoid potential equal pay claims
Need help with gender pay gap reporting?
Speak with a gender pay gap specialist on the Graphite HRM advice line today: +353 1 886 0350Back to the blog
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