Despite legal obligations, nearly one-fifth of large employers in the UK are failing to conduct gender pay gap reporting, according to the latest findings from the Chartered Institute of Personnel and Development (CIPD) in collaboration with ADP, a leading global technology company specialising in human capital management (HCM) solutions.
The CIPD’s “Pay, Performance, and Transparency 2024” report, supported by ADP, highlights the concerning state of pay disparities across the UK.
The study reveals that 17 percent of large employers (with 250 or more employees) have not carried out gender pay gap reporting, and an additional 18 percent are unaware of whether their organisations have conducted such reporting.
A particularly disconcerting trend is observed among businesses employing between 250 and 499 people, where 29 percent admitted to neglecting gender pay reporting, despite its legal mandate for all businesses with 250 or more employees in England, Scotland, and Wales.
Proactive measures need to be taken
In response to these findings, the CIPD are calling on employers to take proactive measures to address workplace inequality. The organisations emphasise the significance of reporting and analysing gender pay gap data to create comprehensive narratives and action plans.
Charles Cotton, Senior Reward Adviser at the CIPD, emphasises the importance of understanding the root causes of gender pay gaps in areas such as recruitment, management, development, and rewards. He states, “Pay gap reporting is an important part of ensuring a fair workplace, as well as having clear business benefits, such as attracting and retaining talent by showing a commitment to good practice.”
Pay disparities
Sirsha Haldar, General Manager of the UK, Ireland & South Africa at ADP, underscores the need for accurate data to move beyond assumptions and address pay disparities. She emphasises that pay disparities can negatively impact employee morale and loyalty and calls for a balanced approach between transparency and confidentiality in salary information sharing.
While gender pay gap reporting is legally mandated for large employers, the report also highlights the need for transparency in other areas of inequality, such as disability and ethnicity pay reporting. In the year to October 2023, the report found that 40 percent of large employers had analysed their ethnicity pay data, while 27 percent had conducted a disability pay report.
The CIPD urge employers to focus on these areas as well, despite the lack of legal requirements, to foster greater equality and inclusivity in the workplace.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
