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best practice diversity reporting

Equal Pay Audits and Gender Pay Gap reporting

Equal Pay Audits and Gender Pay Gap reporting should, by now, be an established part of an organization’s annual Reward work plan. Diversity reporting is becoming best practice for many organisations.  

Our full Equal Pay Audit service incorporates the Human Rights Commission’s ‘Five Step Process for Conducting an Equal Pay Review, but takes the process further, including a  comprehensive report and feedback workshop, and an additional service producing Gender Pay Gap figures for those organisations struggling to meet submission deadlines for gender pay reporting. 

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How does it work?

Using our Equal Pay Reviewer software, we take a snapshot of the data and create equal work groups to enable detailed analysis and pay comparisons by Gender, Ethnicity, Religion and other protected characteristics.

Our consultants have significant experience in this area having undertaking Audits for: 

  • Universities 
  • Local Authorities 
  • Retailers 
  • Manufacturing 
  • Professional Services 

Our overall approach follows the Equalities and Human Rights Commission Five Step process for conducting an Equal Pay review.  

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Five step process

Our overall approach follows the Equalities and Human Rights Commission Five Step process for conducting an Equal Pay review.

  • Step 1 – Decide the scope of the audit
  • Step 2 – Identify where protected groups are doing equal work; like work/work rated equivalent
  • Step 3 – Collect pay data to identify pay gaps 
  • Step 4 – Establish the cause of pay gaps
  • Step 5 – Develop an Equal Pay Action Plan

See how we apply this process below.

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Data requirements & initial analysis

In our experience we have found it is beneficial to include Workshops throughout the audit process. This enables feedback and outcomes to be discussed following the initial analysis and to determine priorities for further detailed analysis. The process concludes with a final workshop that focusses on the overall outcomes and discussion about the Action Planning stage.

Following an initial Scoping Workshop at which the data requirements will be agreed we will undertake an initial pay analysis. This will include focus on the following but not be limited to:

  • Grading Profile
  • Composition of the Workforce
  • Gender Pay Gap by Grade
  • Pay Gap analysis based on different ‘Protected Characteristics’.
  • Starting Pay Analysis

We will provide a range of detailed reports based on each ‘Protected Characteristic’ as defined by the Equality Act 2010.

The composition of the workforce can have a significant effect on the pay gap, but it is also important to understand the workforce based on a range of criteria. We therefore typically include more detailed reports based on the following but not limited to;

  • Grade
  • Employment groups 
  • Job Title
  • Employment type e.g., Full Time and Part Time and Permanent and Casual
  • Length of Service
  • Age Range

We will also undertake an initial policy review at this stage of the audit.

This workshop will focus on the initial findings and our view of the key areas for further analysis and other areas that should be reviewed. At this stage we will have investigated differences in pay where the pay gap exceeds the 3.00% and 5.00% thresholds advised by the Equalities and Human Rights Commission.

As part of this workshop, we will be able to look at the data in our Equal Pay Reviewer system. This will enable us to identify and discuss those factors that may be contributing to the pay gap and equal value issues.

We will also identify potential areas for further investigation and analysis so that we can identify potential contributors to the gender pay gap and potential Equal Pay issues.

Detailed analysis and further investigation

Having identified the causes of differences in pay we will consider in more detail other contributors. There is a range of additional analysis that we will undertake which will include.

  • Detailed policy review
  • Analysis based on age
  • Analysis based on starting pay
  • Analysis based on length of service
  • Access to allowances and additional pay

Whilst some of these issues will be considered prior to the Interim Workshop the purpose of that session is to prioritise a more detailed review either of specific parts of the University or policies and procedures.

Final workshop and action planning

We will present our findings and recommendations at a final workshop. The purpose of this workshop is to enable the process of detailed Action planning to be undertaken. As part of this Workshop, we will also be able to model the financial implications and effects on the workforce of our recommendations and agreed ‘What-If’ scenarios

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