Gender Pay Gap Toolkit 1: Understanding Your Gender Pay Gap
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Learn how to measure and report your gender pay gap. Employers from the private and voluntary sectors and some public bodies with more than 250 employees are required to publish gender pay gap information by the Equality Act 2010. This document helps you understand your gender pay gap by outlining what data to report, who the regulations apply to, how to calculate the data, and when and where it should be published. It also sets out how Business in the Community (BITC) can support you through the reporting process, whichever stage you are at, and provides links to useful resources.
Business in the Community’s gender pay gap toolkit suite covers the following:
- Understanding your gender pay gap
- Analysing your gender pay gap (only available to BITC members with a gender partnership)
- Communicating your gender pay gap (only available to BITC members with a gender partnership)
- Tackling your gender pay gap – attraction and recruitment (only available to BITC members with a gender partnership)
- Tackling your gender pay gap – retention and progression (only available to BITC members with a gender partnership)
At BITC, we encourage early and comprehensive reporting as a positive move towards greater equality for women in the workplace. Embracing transparency could enable employers to enhance their corporate reputation, increase their staff engagement and attract new talent.
Busting three myths about the gender pay gap
The gender pay gap is a measure of the difference between men’s and women’s average earnings across an organisation. Despite frequent media reporting on the gender pay gap the gender pay gap remains a complex and confusing concept. To help you tell facts from fiction, we have busted the three biggest myths around the gender pay gap
Myth number one: The gender pay gap is the same as equal pay.
The gender pay gap is independent of equal pay. It shows the difference between women’s and men’s average earnings across an organisation. Equal pay means women and men get paid the same amount of money when doing similar jobs. Equal pay has been a legal requirement in the UK since 1975. Best practice is to conduct regular equal pay audits.
Myth number two: The gender pay gap exists because there are more men than women in senior positions.
This is a standard response seen in some organisation’s gender pay gap reports, but it describes the symptoms, not the root cause. It is true that there are still more CEOs called David and Steve than female CEOs1 and that 71 per cent of FTSE 100 directors are male2. However BITC view the causes of the gender pay gap as horizontal segregation, vertical segregation and gender discrimination.
Myth number three: Reporting the gender pay gap will not change anything.
Critics say that reporting gender pay gaps will not dramatically affect how organisations attract, hire, or promote women. BITC disagree. Reporting forces organisations to gather their gender data, for most organisation it is the first time, and publish it. This creates more transparency. Organisations can no longer hide behind marketing-style statements like “Women are important to our business”. It is now clear if the data supports these claims.
The gender pay gap is a great opportunity to keep improving gender equality in the workplace. If the idea of the understanding your gender pay gap is still daunting or you worry about getting your gender pay gap narrative right, BITC are here to help.
We provide our members with online and face-to-face guidance to understand their gap and write their contextual narrative. We also offer recommendations to develop an action plan tailored to their needs and relevant to their sector. Contact us to find out more. [LINK TO JOIN US]
1. The Independent; (2018); ‘More people called David and Steve lead FTSE 100 companies than women and ethnic minorities’, 8th March. Available at https://www.independent.co.uk
2. The Guardian; (2018); ‘Number of women in top boardroom positions falls, says report’; 17th July. Available at https://www.theguardian.com