All you need to know about the new gender pay gap reporting regulations

09 December 2016 -

From April 2017 large companies will be required to report on the number of men and women in their workforce – and what they pay them

CMI has welcomed the Government’s publication of its gender pay gap reporting regulations, hailing it as “a big boost to productivity”.

The reporting regulations, which come into effect in April 2017, will require private companies with 250+ employees to disclose how many men and women they employ at every quartile, and how much they pay them.

The move will affect 8,000 employers, requiring them to publish their data on their website, as well as submit it to an online Government database open to the public.

The online tool uses the latest data from the Annual Survey of Hours and Earnings to provide the most up to date gender pay gap data. The gender pay gap is now at a record low of 18.1%, but some 23% among managers, according to CMI/XpertHR data.

The online tool will also show the gender pay gap by profession, so that the public can see how their job measures up against the national average.

Alongside the tool, an online quiz has also been launched allowing people to challenge their knowledge of what the gender pay gap is for a variety of professions.

Minister for women and equalities, Justine Greening, said: “Britain has the lowest gender pay gap on record, there are more women in work than ever before, more women-led businesses than ever before and there are now women on every board in the FTSE 100.

“But if we are to help women to reach their potential and eliminate the gender pay gap, we need to shine a light on our workplaces to see where there is more to do to. This tool will empower both men and women to challenge this issue in their profession and help people to make more informed decisions about their career.

“Employers must play their part in this too and take action to tackle the gender pay gap in their organisation. That’s why we are requiring large employers to publish their gender pay and gender bonus pay gaps for the first time ever and our regulations mean they can start getting ready to report from April next year.”

CMI chief executive Ann Francke called the move a critical step in tackling the gender pay gap, and also a driver of productivity for UK business.

“Gender balance provides a big boost to productivity which is one reason why the Government's gender pay regulations are especially timely,” she said. “Large organisations will have to report the number of men and women they employ at every quartile, and the difference in their salaries and bonuses. Too many organisations resemble a glass pyramid, with the majority of entry-level roles filled by women, and the number of women reducing the higher up you go.

“According to CMI’s long-running research, the gender pay gap has stuck stubbornly around 23%. Men are 40% more likely than women to be promoted in management roles. The combination of transparency and targets will help employers become more aware of their own glass pyramid and encourage them to do something about it. This is great for business because diverse teams are more productive and boost employee engagement. Through our CMI Women campaign we’re working with employers to use best practice and the regulations as a launch pad to achieve gender balance in their teams to drive productivity.”

CMI has published practical guidance for employers on how to work with the new regulations, and is working with its members to use the regulations as an opportunity to increase the value that women add to their organisations.

In November, CMI launched its CMI Women campaign, aimed at getting 1.5m women into management by 2024.

As part of the campaign, CMI has developed a free open source tool for employers to use to achieve 50/50 management. ‘Blueprint for Balance’ enables employers to share information and learn from other the practices and policies that have helped improve gender balance in their organisations.

The new regulations in full

The regulations set out the proposed requirements for employers in the private and voluntary sectors to:

• Publish their median gender pay gap figures
• Publish their mean gender pay gap figures
• Publish the proportion of men & women in each quartile of the pay structure
• Publish the gender pay gaps for any bonuses paid out during the year

Download your guide to the gender pay gap reporting regulations: managers.org.uk/mindthepaygapguidance