THE GENDER PAY GAP - WHAT IS IT & WHO CARESJulian Ford | Business Development Manager

• What is it & Who cares?• Detail & Worked

Example• Group Discussion &

Playback

Gender Pay Gap

Women in the boardroom

I Care!

Background

• Men ARE paid more than women – 17.2%• Men paid more for the same role – 6.6%• Within the same company – 2.2%• Women represent < 25% or executive / senior

manager positions

• Equal pay legislation – equal pay for equal work• Gadhia report into Fin Services – 2016

HR Directors will find the Gender Pay Gap subject:

InterestingTopical

Systems and BI related

Concerns significant

business risk and potential costs

Gender Pay Gap Reporting

• New legislation applies to all British employers with 250+ UK employees• Specific reporting requirements (pay, bonuses, salary quartiles) to show % Gap in

hourly pay rate between men and women• Legislative requirement to display this on public website. Many organisations will

provide additional contextual information• ‘Name and shame’ approach to compliance• First data collection 30 April 2017, first reports 30 April 2018• Initial assessments / pay audits now being prepared • Communications strategies being developed

“It all begins with data clarity - the faster we can clarify the data, the more opportunity there is for meaningful insight and change”

• Gender Pay has no sanction, Equal Pay does! “Equal Pay for work of equal value”- Equality Act 2010 (1970)

• Gender Pay at summary level only, Equal Pay at the individual• Comparable assessment by role / grade• Parallels in the US: Equal Employment Opportunities Commission • Hot topic in UK Financial Services: 2016 - Gadhia review

established to tackle the diversity challenge • Potential for exposing equal pay and/or unconscious bias

• Risk of returners / pay competition• Impact of targets / commissions• Flexible / part time working

• Impacts across Audit and Legal• Huge potential costs for legal issues and remediation

The Big Issue, Gender Pay v Equal Pay

Definition: Pay Gap

1. Overall difference in pay of male / female employees on 30 April each year (snapshot)

• % difference in mean (average) hourly pay during the relevant pay period• % difference in median hourly pay during the relevant pay period

2. Bonus pay

• % difference in mean bonus pay of male / female employees in the 12 months to 30 April each year• % of male and female employees who received bonus pay in the 12 months to 30 April each year

3. Distribution of men and women in each pay quartile

• Numbers of male and female employees in each pay quartile (A, B, C and D, with D being the highest)

Claremont – UK Oracle Payroll specialists

• The Oracle product provides the rigorous Payroll data that allows interrogation.

• Claremont’s proactive, Managed Services already provide well above the new statutory minimum requirements.

• Makes a great conversation piece for the HR Director, and showcase for your BI tool – Can you interrogate this data, in real-time, on your tablet over a coffee?

Group Discussion

• How easy will it be to gather this data?• What reporting tools do you use now - are you

confident they can be used to create this analysis?

• What will be the challenges to obtaining and reporting this data? and how will you look to mitigate them?

• Is your gender pay gap going to be low, medium or high gap when compared to national average?

• What about compared to other orgs in your industry?

• What approaches or ideas do you have to close the gap?

Group Discussion Playback

• Jules’ Top Tips• Women’s work is a real thing, job

titles and job benchmarking are crucial overlaps with gender pay

• Make sure you can split all analysis easily between part and full time, and within age bands

• What questions are you asking of your data? Is this to identify issues, anomalies, trends, or held you close the gap? Do you even want to close the gap?

More & more legislation expected – get your HR reporting sorted now!

Julian Fordjulian.ford@claremont.co.ukhttps://uk.linkedin.com/in/julesford

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