A recent CIPD report reveals significant non-compliance in gender pay gap reporting among UK employers, posing challenges to workplace equality.
- Nearly 20% of large UK employers fail to carry out mandatory gender pay gap reporting, according to the CIPD’s latest findings.
- Many organisations remain unaware of their reporting obligations, with 18% uncertain if their gender pay gap data has been reported.
- The CIPD urges employers to analyse and understand their gender pay gaps to foster equality and fairness within the workplace.
- There is an increasing need for organisations to address broader pay disparity issues, including those related to disability and ethnicity.
The recent report by the CIPD indicates that almost a fifth (17%) of large employers in the UK are not conducting gender pay gap reporting as legally required. This failing is a significant setback in the efforts to achieve workplace equality and transparency.
Alarmingly, 18% of these organisations are unaware of whether they have completed the necessary reporting, emphasising a lack of understanding or attention towards gender disparity obligations.
Employers, particularly those with 250 to 499 employees, have been identified as the most likely to neglect their reporting duties despite the legal requirements set for businesses with 250 or more employees across England, Scotland, and Wales.
The CIPD is advocating for employers to take a proactive stance in addressing workplace inequalities by calculating their gender pay gap data, understanding its causes, and implementing action plans to rectify disparities. As Charles Cotton from the CIPD noted, measurement and management of pay gaps are crucial to fostering a fair workplace environment.
Highlighting the repercussions of non-compliance, Sirsha Haldar of ADP stresses the importance of leveraging accurate payroll data to identify and address pay gaps. The potential negative impacts include diminished employee morale and a tarnished company reputation, particularly among younger, equality-conscious workers.
While gender pay gap reporting is crucial for promoting gender equality, the report also draws attention to other areas where pay disparity transparency is necessary, such as ethnicity and disability. It shows that 40% of large employers have analysed their ethnicity pay data, yet many remain negligent or unaware of the need to report on these disparities too.
Conducting thorough pay disparity reports helps employers identify and act on discrimination and inequality at multiple levels within the workplace, not just by gender but also by ethnicity and disability. This comprehensive approach is essential despite the absence of legal mandates for these areas.
Non-compliance with gender pay gap reporting highlights an urgent need for greater organisational accountability and transparency.
