Are you Ready for Gender Pay Gap Reporting?

Mandatory gender pay gap reporting is now in force for private and voluntary-sector employers, thanks to the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 which came into effect in April 2017.

Now specific figures about an organisation’s gender pay gap (i.e. the difference between the average earnings of men and women, expressed relative to men’s earnings e.g. ‘women earn 15% less than men per hour’) is readily available on the company website.   This article explores what this means for organisations.

Does gender pay gap reporting apply to your organisation?

It applies to organisations with 250 or more employees.  Note that the 250 figure is a total headcount and employers must count all employees, regardless of how few hours they work. For more info see https://www.gov.uk/guidance/gender-pay-gap-reporting-overview

For those with less than 250 employees, don’t be too complacent it is likely a matter of time before this type of reporting becomes compulsory for most employers.

If it does apply to your organisation, what does it mean?

  • It means that by the 4 April 2018 organisations will need to publish their gender pay gap analysis on their website along with a signed statement saying that the information is accurate (and leave these results there for at least three years). Plus, this information will need to be uploaded onto the Government’s reporting website.
  • It means that those responsible will need to be familiar with the definitions in the regulations so that the metrics are calculated correctly. For example, ensuring required elements of pay are included when doing the necessary calculations (“ordinary pay” includes basic pay and holiday pay, but excludes overtime pay and pay in lieu of leave).
  • It means that organisations need to have strong reporting and analytical capabilities so they can collate this report. Access to the right data and an effective HR system such as SagePeople is integral to this.
  • Lastly, it means organisations will need to address the gender pay issue in a meaningful way before this information becomes available in the public domain. They also need to consider the impact from making this information available and how it portrays the organisation to prospective candidates, existing staff, prospective customers and other 3rd parties such as potential investora. A plan of action to address gender pay gaps is eminently sensible to avoid a potential  backlash as evidenced recently over the BBC’s gender pay gap.

Conclusion

So, will you be compliant next April? And will you be able to address the challenges of a gender pay gap. If you would like to discuss any of the issues raised in this article please contact us on 01327 317 701 or via our website.

How to Unlock Your HR data?

Recently I read an article on the HR Zone website titled “Unlock Data in HR“. Towards the end of the article I came across what I think is some excellent, succinct advice on “how do you unlock the value of your HR data?”:

  1. Don’t wait for the perfect system or perfect time – it will never come. Messy data is often used as an excuse, don’t let it be! After all, you have to start somewhere.
  2. Visualise the data as quickly as possible. Visualising data is much more engaging than a row of tables, surfacing anomalies more quickly and facilitating an active, valuable conversation around the data and what it represents.
  3. Collaborate with your finance team. HR and finance share a lot of the same data so by sitting down together you can cross check and benchmark across the business.
  4. Put data back into the hand of the business. Engage those who hold the data. Give them ownership and responsibility for their data, and regular feedback so they can see their progress.
  5. Connect HR inputs to business outputs. HR owns lots of inputs (recruitment, training, engagement, reward) and it has to connect them to business outcomes. Demonstrate the value your data, and more importantly your actions can add.

I hope you agree it’s worth sharing and helps you to make more of the HR data at your disposal.

If you want advice on how to implement HR analytics within your organisation or want to improve your current reporting, talk to one of our associates at Tugela People, on 44(0)208 144 5213

10 Tips for Procuring Company Benefits Successfully

As benefits specialists we are often asked for advice on creating Benefit packages that work. Here is 10 elements to consider at the outset to ensure

  1. Know what you’re looking for and why. Start early on with the process too to ensure you’re not pressured into a deal that isn’t right for your organisation.
  2. Decide if you have the necessary expertise in-house to procure benefits ; if not outsource it to a broker. Outsource advisors have specialist knowledge, understand the providers and market. Outsource providers can save you time and money. But make them work for the money that you’ll pay them (New RDR Rules)
  3. Consider doing less complex benefits in-house e.g. dental plan, medical cash plan, cycle-to-work or Employee Assistance Program (EAP) to save costs, but only if you have the knowledge.
  4. Consider a benefits platform to communicate the company’s package and to enhance the benefits on offer. Benefit platforms also make the administration easier, less complex and reduces administration costs.
  5. Try to bundle as many benefits as possible from a single supplier to make use of bulk discounts and additional services e.g. some providers offer EAP services as part of their package or communication support &/or helpdesks
  6. Take out only the cover that you need for risk benefits. For a low risk workforce, consider increasing excess to reduce premiums.
  7. Consider tax relief options (salary sacrifice, salary exchange) that exist for many benefits including cars, bicycle, pension, etc.
  8. Ensure you review your suppliers (good procurement practice) financial stability and service deliver (references). Negotiate good SLA terms as part of the deal to protect poor delivery and none compliance.
  9. Compare multiple suppliers and negotiate on price to get best value for money.
  10. Seriously consider flexible benefits for your workforce, because one size doesn’t fit all. And also consider financial education as part of the package, especially with pensions provisions. Ultimately you should understand what benefits your employees value most to get a good return on investment.

If you would like further advice on creating an appropriate benefits package for your organisation call Tugela People.