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Gender Pay reporting and the opportunities you may be ignoring

Culture | Employee Experience | Engagement | EVP | Gender Pay | Reward

Posted on: Monday March 20, 2017

Would you be able to talk about your experience in a country when all you have done is see (a small part of) it through a plane window? Unlikely, right? And yet, it seems like this is what many companies are at risk of doing by not going much farther than what is required by Gender Pay reporting legislation.

An even bigger reason for concern is the overwhelming focus on the process for meeting these requirements rather than looking ahead at the implications, opportunities and risks of the outcomes from this exercise.

Recent cross-sector research by QCG shows that:

  • Only 3% of companies have done their homework and have external and internal communications ready, besides having done the relevant analysis of course.
  • 10% of companies reported having completed the analysis,
  • Almost 80% are in between the planning and data analysis stage.

However, the most striking thing we found is that even though 58% of companies reported reputational damage being the main concern in the aftermath of Gender Pay reporting - twice as many as the next area of concern - 62% of companies are yet to agree on an approach to communicate these results.

Analysis is commoditised, insights are not

Process, process, process. We all love a bit of that. Reward practitioners certainly 'excel' at it - pun intended. What we are not very used to doing is ask "and then what?" Especially when it comes to articulating a story to provide adequate context for the results of our analytical prowess. When it comes to Gender Pay reporting, this is where battles will be won or lost.

Get the right story behind the (right) numbers and you will give a big boost to transparency, trust and, ultimately, engagement in your organisation - even if the overall picture at first is not as rosy as you would like it to be.

Here are some recommendations we have put forward to our clients to give them a better chance of making the most of the opportunities Gender Pay reporting presents:

1. Dig deeper

Meeting the basic reporting requirements will do as much for your story as trying to push a car uphill by just leaning on it. Identifying relevant differences in pay by grade and function is a good starting point. Understanding the impact on these differences of employee demographics, working patterns and talent strategies will be even better.

2. Reach out

Bridging the gender pay gap is not just a reward issue – despite what some may believe. It is a business issue that calls for an integrated HR approach to find real, sustainable solutions. We need to leave the spreadsheets behind and start talking to people about this.

3. Think big

Approach Gender Pay reporting in the context of a broader push for transparency in your organisation. Consider the links to your reward and HR communications strategies and look for opportunities to capitalise on a coordinated approach. Review the key messages that you want to reinforce or start putting out there.

And, at the expense of breaking the glorious ‘rule of threes’…

4. Keep it real

Treat employees like adults. Do not sugar-coat difficult messages. Focus instead on finding out what the real issues are and painting a picture of what the journey to addressing these issues looks like – and of course, highlight examples of progress in the equality agenda.

Are you really ready to face the challenges and opportunities of Gender Pay reporting?

Have you thought of the value of a second opinion on this matter and the credibility it will bring to the process?

Enter commercial plug. Yes, at QCG we can work with you to think through the key messages and approach to making sure you score a big win with Gender Pay reporting.

We can help you scratch beneath the surface to find the root cause of differences in gender pay. And we can also help you get the numbers right - or validate the numbers you already have.

Drop us a line.

Juan Novoa, Consulting Lead at QCG – March 2017

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