The UK Government has introduced two new tools to help companies identify if they have a gender pay gap and the steps that they can take to close this gap.
The new guidance published by the Government Equalities Office (GEO) has been introduced against a background of much greater awareness by employers and improvements in the gender pay gap since legislation was introduced in 2017.
Guidance provided under eight ways to understand your gender pay gap challenges companies to review the practices and identify potential areas for improvement such as entry level terms and conditions, part-time workers and performance and evaluation schemes that are in place.
The GPG action plan is a four step guide to help employers develop and action plan to address the reasons they have a gap and how can they can act over time to ensure that all staff are treated fairly and equally.
Minister for Women and MP for Louth and Horncastle, Victoria Atkins, said;
The gender pay gap is at its lowest level on record, but that is still not good enough if we want to achieve real gender equality in the work place.
Last year 100% of companies in scope reported their pay gap data, but they now need to take steps to put an end to this inequality. These steps includes better engagement from senior leadership, more open conversation about why organisations have a gender pay gap and improving recruitment practices.
We want employers to understand the causes of their gender pay gap and create action plans that will close those gaps for good.
The GEO is committed to further improvements in the coming years and is constantly working on measures such as the Workplace and Gender Equality Research Programme (WAGE) and the Gender and Behavioural Insights Programme to make progress.
From a risk management perspective employers and business owners should be aware that it is certain that these issues will have a significant impact on both commercial legal expenses insurance and management liability insurance in the future.