Most employers have already calculated their pay gap, but research by XpertHR suggests they’re holding back on reporting their findings for fear of standing out if they publish early. Organisations with 250 or more employees have to publish their gender pay and bonus gaps by April 2018 in order to comply with Regulations that came into effect this year. However, with less than six months to go, only 6 percent of the estimated 4,000 employers covered by the new law have complied. Despite the low reporting rate to date, more than one in four ( 26.5 percent) mid-sized companies (those with 250-999 employees) and more than half (51.5 percent ) of larger companies (with 1,000+ employees) have already calculated their pay gaps. Anecdotally, some have told researchers that they are waiting to see what other companies in their sector do before publishing – or that they want there to be a large number of reports in the public domain before they release their own figures.

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While a third of companies have already completed their gender pay gap reports, many remain reluctant to publish the figures; and a majority (70 percent) want to include an explanatory narrative to help support their findings. According to the new survey by Mercer, although perceptions of the regulations have improved since being made final, companies find the regulations complex (41 percent), confusing (29 percent) and misleading (28 percent). The result is, while a third of companies completed their analysis at the end of May, most (44 percent) plan on leaving it to later in the year (Oct 2017-Jan 2018) to report; and 28 percent don’t know when they will report. When looking for root causes of the pay gaps, 54 percent of respondents have conducted some sort of analysis (e.g. equal pay audits and bonus programme analysis) in the last three years. Looking ahead there is a dramatic change in the attention being given by organisations to actions beyond pay, and some leading organisations are addressing this issue already.

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As we reported earlier this week, more needs to be done to ensure that female representation in the boardroom increases; and now a new report paints a negative future for European businesses if the pay gap isn’t adequately addressed. Mercer has warned that a failure to address the EU’s substantial gender pension gap (40 percent), could cause long-term problems for businesses and governments alike; as through its analysis, the consultancy has found that the pension gap varies widely from one member state to another, however half have gaps of 30 percent or more. In its white paper The Gender Pension Gap – From Awareness to Action Mercer outlines the key drivers behind the pension gender gap, how it will impact companies and how they can start to address it within their workforce. Women continue to be significantly under-represented at all levels of the work force; in the EU their participation rate is 10 percent lower than men. The European Commission’s recent proposal for a directive on work-life balance for parents and carers, including the introduction of carers’ leave for dependent relatives, aims at addressing this under-representation.

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