With just under two months to go until the second gender pay gap reporting deadline on 4 April 2019, only 1,000 or around 10.5% of the total number of organisations expected to submit their data have done so. Analysis by paygaps.com has shown that while some organisations have provided narrative on the progress they are making, others have chosen to meet the minimum reporting requirements.
The overall median gender pay gap currently stands at 10.4%, less than last year’s final outcome of 11.8%. The median gender bonus gap is -6.4% which compares to -21.8% for 2018. However many of the organisations with large pay and bonus gaps are still to report.
The highest number of organisations to have reported so far has been in the public sector, with 176 submissions. The sector with the highest median gender pay gap is construction at 25.5%. Financial services follows with 21.1%. Agriculture, forestry and fishing has the highest median bonus gap at 63%.
The organisation with the highest median gender pay gap is Nexus Education Schools Trust in Bristol at 58%, even although it employs 94% women. The organisation does not include a gender pay gap report on its website.
Further analysis by paygaps.com has shown that issues remain with the quality of the data being submitted to the government, with around a third of all organisations having made one or two administrative errors during the reporting process.
With less than two months to go until the second reporting deadline, there will be greater scrutiny on the quality of gender pay gap reports submitted. While the deadline is close to the UK’s EU withdrawal date of 29 March, employers can expect significant interest in their reports, with employees and other stakeholders keen to understand what’s changed.
Innes Miller, chief commercial officer of paygaps.com says that it will be important for organisations to clearly articulate what they are doing to close their gender pay gaps.
According to Miller, “Last year we saw the majority of reports explaining what the gender pay gap reporting legislation was and how if differed to equal pay. While an important part of the education and awareness process, employers this year must define what steps they are taking to close their gaps. Most reports still lack detail on the steps being taken and how the outcomes of these steps are measured.”
With the government consultation on ethnicity pay gap reporting having come to end on 11 January this year, employers should expect additional reporting requirements as the government seeks to encourage employers to think about what steps they can take to create fairer workplaces. However, many employers do not currently have the data to meet the requirements of the proposed legislation.
Fiona Hathorn, managing director Women on Boards UK said, “Greater transparency will have significant implications for employers who in time may find it increasingly difficult to attract the best talent, win new business and appeal to investors who are focusing ever more on the social impact credentials of the companies they invest in. Now is the time for management to communicate the quantifiable steps they are taking to make a positive and sustainable change.”