As the deadline for the UK’s gender pay gap reporting looms just over a month away, the Chartered Institute of Personnel and Development (CIPD) is calling on employers to not only meet their reporting obligations but also to embrace a broader responsibility for fostering fairer and more inclusive workplaces.
This plea comes in the wake of a recent CIPD report, revealing that nearly one-fifth (17%) of large organisations in the UK failed to comply with legal reporting requirements in the preceding year.
While it is crucial to clarify that pay gaps do not necessarily equate to women being paid less than men for the same role, they do serve as an indicator of potential areas for improvement in terms of equality and inclusion in various aspects of workforce management.
Charles Cotton, Senior Reward Adviser at CIPD, emphasised the significance of analysing pay data as a means to understand the root causes of pay gaps and subsequently formulate action plans to address any existing inequalities.
Persistent pay gaps
The CIPD report, produced in collaboration with payroll systems provider ADP, sheds light on the persistent challenge of pay gaps across the United Kingdom. Notably, British organisations with more than 250 employees are legally mandated to report their gender pay gaps annually.
The report identified that organisations with employee counts ranging from 250 to 499 are the most likely to acknowledge non-compliance with reporting requirements in the 12 months leading up to October 2023.
While acknowledging that reporting alone will not entirely close the gender pay gap, the CIPD underscores the crucial role of data analysis in empowering HR professionals to identify and understand disparities within their organisations. The report encourages organisations to use this information as a foundation for developing comprehensive action plans that contribute to narrowing pay gaps.
Proactive steps to be encouraged
In support of these efforts, the CIPD has recently updated its guides to assist HR professionals in comprehending the nuances of the gender pay gap and navigating the reporting process effectively. By providing these resources, the CIPD aims to empower organisations to take proactive steps toward creating workplaces characterised by fairness and inclusivity, ultimately contributing to a more equitable professional landscape. As the deadline approaches, the CIPD’s call to action remains clear: prioritising transparency, fostering equality, and working collectively to bridge the gender pay gap in the UK.
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.
