Gender pay gap in the workplace is an issue that has been high profile and has had extensive media coverage. It’s a problem that has been plagued and needs to be addressed. Although many big companies have been forced to make changes to their unequal and unfair pay policies, small businesses also need to take notice.
Sage has created an infographic to highlight the gender pay gap statistics for companies of all sizes. Examples of how to compare median hourly rates for men and women, and what the underlying issues are that affect gender diversity in companies, are covered in the infographic. You may think that this is only of importance to companies with over 250 employees; however, even the smallest of organisations can benefit from understanding and addressing their wage gap.
Gender pay gap reporting for small businesses
Although not legally bound, it’s important that companies with fewer than 250 employees are aware of a gender pay gap in their own business. By highlighting patterns of exclusion or disparities in pay, an organisation can recognise signs of unconscious bias and put a plan in place towards providing equal pay, opportunities and recognition for all employees.
By offering a level of transparency, it will not only assure existing employees that the relevant steps are being taken to promote an equal pay structure, but also improve company culture; helping to retain employees and attract new talent.
What challenges come with gender pay gap reporting?
While a smaller company will not face the same level of scrutiny or litigation, there will definitely be challenges to overcome. For example, a smaller company may not have the same level of available resource to put towards identifying a pay gap and, without a dedicated HR department, a knowledge gap may also burden it. However, simple steps can be taken to ease this, such as regular pay audits, routine appraisals and open communication.
Also, a smaller company may not be in the same position to offer employees benefits such as childcare or be able to supply the equipment required for flexible working. However, there are options to help businesses overcome these challenges – for example, schemes such as childcare vouchers are free to join and help support those returning to work after maternity or paternity leave.
Below is a guide on how to calculate the gender pay gap within your business.