The Gender Pay Information Bill 2018 is due to take effect in Ireland in the not too distant future. Following in the footsteps of other European countries, like Germany, France and Spain, it states that public and private sector companies must provide information on the pay given to employees based on their gender.
According to a report by the World Economic Forum, in the EU women are paid over 16% less per hour than men. In Ireland this translates to 13.9% and if action is not taken it could take up to 100 years to close the gap.
Once enacted employers will also be required to publish what measures they are putting in place to reduce the gender pay gap. For those firms who can report a low or a non-existent pay gap, they gain significant advantage when employing future employees and it reflects very well on the culture of the company.
It is likely that when enacted this will be rolled out in stages, starting with employers of 250 or more, failure to meet deadlines will no doubt end in penalty so it is important to start putting measures into place now.
We understand this can put a strain on resources, managing payroll is a complex and time-consuming operation. Keeping up to date with ever evolving legislative changes, ensuring payroll compliance and delivering employee wages accurately and on time takes its toll on a business’ senior resources. Here at Paycheck Plus, we’ve been providing comprehensive payroll services tailored specifically to each of our client’s needs for over a decade. Speak to our team today about offloading your payroll to us.
What is required?
The information published must include:
- The difference between both the mean and median hourly pay
- Difference between both mean and median bonus pay
- Difference between both mean and median hourly pay for part time workers
- Percentage of male and female employees who received bonuses and benefits in kind.
At the same time, you will also be required to report on the reason for these gaps and the measures in place to rectify the difference.
The bigger picture
Gender pay gap (GPG) reporting is not just about equal pay. It is an initiative that encourages a diverse and inclusive workplace. Proven to strengthen the culture internally and develop the employer brand, employers are more likely to retain and attract the talent needed if they report a low pay gap. It can be used to demonstration to stakeholders how you are dealing with inequities and the commitment to diversity and inclusion. An inclusive workplace enables a diverse range of people to work together effectively. Diverse teams are smarter, more likely to generate new product ideas and enter new markets.
As we have mentioned preparation is key. As employers you should carry out a full review of your employees pay, identify the gaps and the reasons for them.
Learning from others mistakes, when the legislation was brought into the UK all employers complied but were let down by their lack of narrative explaining why there is a pay gap in their organisation. Getting started on this will provide a great foundation for when the legislation comes into play here, and serves to reassure employees, potential employees and other stakeholders as to why a gender pay gap figure exists.
Finally, your organisation should develop and communicate an action plan on how you will tackle the gender pay gap figure. By outlining and delivering an effective action plan, you will ensure all stakeholders remain motivated and there is no reputational damage to an organisation.
We can help
Let Paycheck Plus help you get this right first time. We can provide tailored reporting, advise you on the steps that need to be taken to close the gap and free up your valuable time and resources so you can focus on what you do best.
If outsourcing your payroll is something you wish to consider, why not talk to our professional and find out what they can do for you. To ensure payroll accuracy or for more information on our payroll services simply request a callback now or call our office on 041-9892100. Alternatively, request a quote here.
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