From April 2018, the UK will become one of the first countries in the world to require voluntary, private, and public sector employers with 250 or more employees to publish statutory calculations every year showing how large the pay gap is between their male and female members of staff.
This is a significant step towards achieving workplace equality and offers organisations a unique opportunity to effect positive change on society. However, so far fewer than 750 employers have reported their gender pay gap data out of over 9,000 companies that will be required to publish this information by the 4th April deadline (30th March for public sector employers).
In 2017, the median gender pay gap for full time employees in the UK stood at 9.1%, down from 9.4% in 2016. If you take the mean calculation, the gender pay gap is 14.1%, a figure that increases to over 50% in the aviation industry.
Workplace inequality is not only unfair on employees; it poses a severe threat to an organisation’s reputation and to the long term value of the business. As trusted advisers, public relations specialists are uniquely placed to help organisations address and communicate even the most significant pay gap.
Handled well, gender pay gap reporting offers organisations the opportunity to shape their reputation for the better. By communicating clearly and honestly what the issue is, and importantly the steps being taken to address any gender pay gap, organisations have the opportunity to position themselves as progressive and fair employers while rectifying any historic wrongs.
Take easyJet for example. At the end of last year the company admitted their average UK-based female employee earns 51.7% less than their average UK-based male employee. The company addressed this issue head on, engaging with employees and the media to ensure it was understood that the issue had been identified, that it was an industry-wide problem, and more importantly what was being done to fix it.
On top of this, only a few days ago easyJet’s new chief executive Johan Lundgren voluntarily took a £34,000 pay cut to match the salary of his female predecessor, Carolyn McCall. Crucially, by being open and transparent, easyJet has successfully turned their large gender pay gap into a positive story for the brand.
As the deadline looms, it is crucial organisations have in place a clear strategy for how any gender pay gap will be communicated to employees, stakeholders, and the public in order to deliver the right message that reflects the true position of the organisation. A single gender pay gap figure likely won’t tell the whole story, so it is important to provide context and to communicate the steps that are being taken to address the underlying causes of any gap.
If you haven’t already, prepare your communications strategy now. Gender pay gap reporting poses a reputational risk that organisations simply cannot afford to ignore.