Response to EHRC’s recommendations on pay gap reporting

The Equality and Human Rights Commission (EHRC) today announced its recommendations around pay reporting and the Equality Bill.  The Bill contains a reserve power which could lead to mandatory reporting of organisational pay gaps by 2013.  The recommendations from the EHRC encourage organisations to voluntarily report on their pay gap before this date. The recommendations include a series of measures which organisations could use to publicly report on any pay gap. Claire Reynolds, policy advisor at Opportunity Now comments on the EHRC’s recommendations:

“There is a persistent pay gap between men and women which is not good for business, the economy nor society.  The latest figures from the ONS show that men in the private sector earn 28.8% more per hour than women in the private sector. Men start to earn more than women almost as soon as they enter the labour market and the gap keeps on rising with age. Three years after graduating, women already earn 15 per cent less than their male counterparts. This kind of inequality is unacceptable in 2010 and it certainly isn’t good for women.  Unequal pay doesn’t just affect women it has a significant knock on effect to children and men through reduced family incomes.”

“Ask any employer whether they have equal pay and you will be met with an emphatic yes! But if they haven't carried out a pay audit, or examined their data then how do they know? What gets measured gets done and this is certainly true of equal pay. It is only when employers really mine their data and get to grips with the real picture, that they can set about solving it. Opportunity Now’s data reveals that within our membership of employers, 61% of private sector employers have already put an infrastructure in place to audit pay on a regular basis.”

“The recommendations from the EHRC present employers with a way of reporting which will hopefully drive change and help create more pay parity.  Whether in the corporate world or in political life, the public have been demanding greater transparency. By asking employers to publish their pay data we can achieve that transparency for women at work. Opportunity Now hopes this will allow employees, customers and suppliers to see which organisations are monitoring and working to eliminate their gender pay gaps.”
“However, if these recommendations are to be successfully taken up by employers, it is vital that clear guidance and practical and pragmatic assistance is provided. Collecting and publishing pay data requires business commitment, time and resources, and we would urge the government to ensure that employers are adequately supported.”

“Opportunity Now believes that addressing issues of disparity in pay is part of being a responsible employer. When an organisation demonstrates that it values a fair and diverse workforce, it maximises the innovation, productivity and loyalty a wider talent pool can bring. Equal pay claims now account for a third of all employment tribunal cases.  These cases are not only financially costly they can also severely damage organisational reputation.”

About Opportunity Now

Opportunity Now empowers employers to accelerate change for women in the workplace because it makes good business sense. We work with our membership of 350 employers, from the UK’s largest to some of the smallest in the private, public and education sectors to offer tailored, practical and pragmatic advice on workplace issues.

Opportunity Now is part of Business in the Community, a registered charity. 

Business in the Community

Business in the Community mobilises business for good. Our members commit to take action on the key issues of today, be they people or planet, and create a unique platform for collaborative action. 

Business in the Community’s approach to responsible business provides a clear framework to address new challenges, improve business performance and benefit society. Our members recognise the relationship between responsible business practice, addressing social and environmental need, and the role this plays in building confidence and creating wealth.
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