Private sector organisations are increasingly aware of the benefits to their business 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.
Mandatory pay gap reporting
The UK Government has announced that it will introduce legislation from 1 October 2016 that will require private and third sector organisations with 250 or more employees to publish they gender pay gap. Organisations will also be required to publish gender differences in bonus payments.
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 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.
Gender Budget Analysis Tool This gender budget analysis tool was developed as part of a research project with Women in Scotland's Economy (WiSE) research centre.
Gender Budget Analysis: Case Study This case study was developed as part of a research project with Women in Scotland's Economy (WiSE) research centre.
Gender Equality Pays: The economic case for addressing women's labour market inequality This paper presents research into the link between gender equality and economic benefit.
How networks and mentoring can address occupational segregation: What policymakers can learn from WiRES This report summarises the evidence gathered from a Close the Gap project which developed the WiRES network.
Missing out on the benefits? Close the Gap commissioned researchers at Glasgow Caledonian University to investigate the extent to which Scottish employers are taking actions to close any gender pay gaps.
The business benefits to promoting gender equality in the life science sector Close the Gap were delighted to contribute an article to the NEXXUS newsletter - Scotland's life science network.
The relationship between actions to promote gender equality and profit (Emily Thomson, ERI) This research collates and analyses the existing evidence in support of the business case for addressing gender inequality in individual firms.
Valuing Diversity: The business case for gender equality during an economic downturn (Emily Thomson) This brief position paper outlines the main ‘business case’ arguments for action to close gender gaps in employment and reinvigorates them in light of the current economic downturn in Scotland.
WiRES: What businesses can learn A publication for employers which shares the findings from Close the Gap's project on women in renewable energy.