Gender and ethnicity pay gap
Why should businesses measure their pay gap?
It is required by law for businesses with more than 250 employees to report their gender pay gap data. There is no legal obligation for businesses to report their ethnicity pay gap data. However, there are numerous benefits to smaller businesses that measure and report their gender and ethnicity pay gap data.
- According to the governments database from April 2022 over 400 small businesses voluntarily uploaded their gender pay gaps.
- Research by the Equality and Human Rights commission (EHRC) has found that almost two thirds of women look at potential employer’s gender pay gap before applying for a job with that employer.
- By making gender and ethnicity pay gap reporting a priority, employers, especially small businesses can ensure they are equipped with the appropriate processes and initiatives in place to prevent further gaps.
- By complying with the gender pay gap regulations, businesses are helping to close pay gaps and create a fairer and more diverse workforce.
- Leaders who develop plans and report on pay gaps are more likely to attract a diverse group of talent within their own organisation. As a result, organisations are able to save money on costly recruitment, whilst retaining a happy and engaged workforce.
- To maintain an open approach to pay management: research suggests this is associated with employees’ perceptions of fair pay and lower gender pay gaps
Page last updated: 20 November 2023
