Private sector

Private sector organisations are increasingly aware of the benefits of a diverse workforce. Businesses whose workforces mirror their customer base are able to respond more quickly with products and services their customers want and need.

Gender pay gap reporting

Private and third sector employers in Scotland that have 250 or more employees must report a range of gender pay gap information including:

• Mean and median gender pay gap figures;
• Gender gap in bonuses, and the proportion of men and women receiving bonuses;
• The proportion of men and women in each pay quartile; and
• A written statement.

The UK Government recommends that employers include a report which contextualises this information, explains the causes behind the employer’s pay gap, and sets out what steps the organisation will take to close it.

Use Close the Gap's online tool to make gender pay gap reporting easier and more effective

• Generate their pay gap information;
• Identify priority areas for their organisation by answering a short series of questions; and
• Receive a bespoke report and action plan for addressing the pay gap in their organisation.

The easy to use online tool provides detailed, tailored guidance around an organisation’s employment practice in five key areas which align with the causes of the gender pay gap:

• Pay, performance and bonuses;
• Flexible and part-time working;
• Recruitment and promotion;
• Training and development; and
• Workplace culture.

Employers that take steps to reduce their pay gap are more productive, more innovative and more profitable, and are able to draw from a wider pool of skills and talent. When employers take action on the pay gap everybody benefits, as evidence shows closing the gender gap in employment is worth up to £17bn to Scotland’s economy.

To use the tool visit www.closeyourpaygap.org.uk

Providing fair and equal pay

Ensuring pay transparency requires businesses to take a detailed look at their pay systems and compare the pay earned by men and women. It then requires employers to make sure they can justify any discrepancy in pay.

Increasing the representation of women is not the only win for businesses that undertake reviews of their pay systems. Other benefits include improved retention, increased morale, reduced absenteeism, a positive corporate image, and enhanced productivity and innovation. Pay is one of the key factors affecting motivation and relationships at work.

Ensuring that pay systems are fair also mitigates the risks of claims being taken against your business under the Equality Act. Tribunals in Scotland can award up to five years back pay, plus interest, to men and women who bring successful equal pay claims. The damage caused to the reputation of a business by a tribunal loss is difficult to measure.

More information on the actions that can be taken to narrow the gender pay gap are in the What you can do section.

Close the Gap can provide confidential support and assistance to employers in carrying out pay reviews. We can also work with your organisation to identify steps to address the causes of your gender pay gap, including ways in which you can address any barriers to women’s progression.

To find out what we can do for your business, please contact us.