What is the gender pay gap?
The gender pay gap is the difference in average earnings between men and women. In the United States, the gender pay gap reporting shows women earn about 79 cents for every dollar earned by men, according to data from the U.S. Census Bureau. The gender pay gap varies by race and ethnicity, with white women earning about 73 cents for every dollar earned by white men and Hispanic women earning about 54 cents for every dollar earned by Hispanic men.
The gender pay gap exists for a variety of reasons: gender-based discrimination, the prevalence of women in lower-paying jobs, and the fact that women are more likely to take time out of the workforce to care for children or elderly family members. Despite progress in recent years, the gender pay gap continues to be a major issue in the United States and around the world.
Why is the gender pay gap reporting important?
The gender pay gap is an important metric for measuring equality in the workplace. By analyzing the pay gap, we can better understand the disparities between men and women in terms of compensation. This information can then be used to inform policies and practices that aim to close the gap.
There are a number of reasons why the gender pay gap exists. Some of these reasons are structural, such as the prevalence of women in lower-paying occupations or the fact that women are more likely to take on part time work. Other reasons for the pay gap are more insidious, such as discrimination or the “Motherhood Penalty”.
Regardless of the reasons for the gender pay gap, it’s important that we continue to measure and track this metric. Only by doing so can we hope to close the gap and achieve equality in the workplace.
Who needs to run the gender pay gap reporting?
Under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, private and voluntary sector organisations with 250 or more employees must publish certain figures about their gender pay gap. These include the difference between the mean and median hourly rates of pay for male and female employees, the difference between the mean and median bonus paid to male and female employees, and the proportion of male and female employees who receive a bonus.
Organisations must also publish the proportion of male and female employees in each quartile of the organisation’s pay structure. This is intended to show how the distribution of pay differs between men and women within the organisation.
The gender pay gap information must be published on the employer’s website and must be accompanied by a written statement from a senior person within the organisation. The statement must confirm that the published gender pay gap information is accurate and explain what actions they took to generate the gender pay gap figures.
How to run the gender pay gap reporting
The gender pay gap still exists in many workplaces around the world. In order to close
the gap, employers need to do a gender pay gap analysis. This analysis involves looking
at the differences in pay between men and women in the same organization.
There are a few things you need to do in order to run the gender pay gap analysis. First,
you will need to compile data on the hourly wages of all employees within your company. This data can be gathered from payroll records or surveys. Once you have this data, you will need to calculate the median wage for both men and women. To do this, you will need to first find the median wage for all employees, and then find the median wage for just the men or just the women.
Once you have the median wage for both men and women, you can then calculate the gender pay gap. This is done by subtracting the median wage for women from the median wage for men. The resulting number will be the gender pay gap in your company. You can use this information to help improve workplace conditions for women and to help close the gender pay gap.
You can find out more about running the gender pay gap analysis on the UK gov website: https://www.gov.uk/government/collections/gender-pay-gap-reporting
If you are having problems with and/or need to outsource your gender pay gap reporting, please email me with your company details and I will be happy to provide you with a quote.
