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 organisation’s annual reward work plan. Diversity reporting is becoming best practice for many organisations. We offer comprehensive solutions to confidently navigate the complexities of equal pay audits and gender pay gap reporting.

Our comprehensive equal pay audit service incorporates the Equalities and Human Rights Commission’s Five-Step Process for Conducting an Equal Pay Review. Our expert consultants add a comprehensive report and feedback workshop to help you identify pay discrepancies and develop actionable plans to navigate the complexities.

We also offer an optional service producing gender pay gap figures for those organisations struggling to meet submission deadlines for gender pay reporting.

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 

Five-step process

Our overall approach follows the Equalities and Human Rights Commission’s Five-Step Process for Conducting an Equal Pay Review, a great reference point for organisations to develop a systematic and evidence-based approach to achieving equity:

  • 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.

Our strategic approach to data analysis and action

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Workshops throughout the audit process enable discussion of feedback and outcomes following the initial analysis. We can also 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 when data requirements are agreed, we undertake an initial pay analysis. This includes focus on several factors, including but not 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 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’s also important to understand the workforce based on a range of criteria. We therefore typically include more detailed reports based on the following:

  • Grade
  • Employment groups 
  • Job title
  • Employment type e.g. full-time, part-time, permanent, and casual
  • Length of service
  • Age range

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

This workshop focuses 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 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 look at the data in our Equal Pay Reviewer system. This enables us to identify and discuss those factors that may be contributing to the pay gap and equal value issues.

We also identify potential areas for further investigation and analysis so that we can identify possible 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 consider in more detail other contributors. There is a range of additional analysis that we undertake, which 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 organisation, or policies and procedures.

Final workshop and action planning

We present our findings and recommendations at a final workshop. The purpose of this workshop is detailed action planning. As part of this workshop, we also model the impact of our recommendations, both financially and in terms of effect on the workforce. Agreed hypothetical scenarios can also be explored.

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