Gender pay gap reporting – get ready for round two

The deadline for the publication of year two gender pay gap figures is fast approaching, with employers required to publish statistics based on 2018 data on or before 4 April 2019.

In many ways, year two reporting should be more straightforward for employers – they have the benefit of last year’s experience running the calculations (which should minimise the chances of the statistics being calculated incorrectly) and can learn from the way in which some organisations were criticised by stakeholders.

However, with this experience comes new pitfalls:

  • Is last year’s methodology still appropriate?
  • Has any progress been made?
  • Does the benchmark of last year’s figures cause difficulties?
  • Is it enough just to comply with the bare minimum required by the regulations or is there an expectation to go further?

It is clear that the media will focus on comparisons with year one figures and there has been widespread reporting of employers whose gaps increase. Narratives allow employers to explain these gaps and, as highlighted in the EHRC’s recent report, give employers the option to communicate a positive action plan.

We have prepared a guide setting out the key factors for employers to consider when calculating and reporting on their year two figures.