Gender Pay Gap Reporting: What Does it Mean for Irish Employers

First things first: What is the gender pay gap in Ireland and why must you report on the pay gap within your business? 

 Well, gender pay gap reporting in Ireland first came to the attention of Irish employers with the introduction of the Gender Pay Gap Information Act 2021. This Act set out the legislative requirements for reporting the gender pay gap within a business in Ireland. 

But how is the pay gap determined? Applying to businesses with over 250 employees, the Act required these employers to choose a ‘snapshot’ date in June 2022 (and June each year after that) upon which to base their reporting. The businesses then needed to calculate the hourly pay gap between men and women within their workforce by conducting a headcount of all staff on their chosen snapshot date.

Businesses have a maximum of six months to prepare their calculations. Once they have collated their findings into a report, it must be published on their website or somewhere accessible to its employees and the public.

As you can see, this legislation gives employers another task to complete. However, reporting your gender pay gap is made easier by understanding what to include and what strategy to implement.

 

Government guidance calls for businesses to report on a range of factors. These are:

(a) The difference between the mean hourly remuneration of employees of the male gender and that of employees of the female gender is expressed as a percentage of the mean hourly remuneration of employees of the male gender.

(b) The difference between the median hourly remuneration of employees of the male gender and that of employees of the female gender is expressed as a percentage of the median hourly remuneration of employees of the male gender.

(c) The difference between the mean bonus remuneration of employees of the male gender and that of employees of the female gender expressed as a percentage of the mean bonus remuneration of employees of the male gender.

(d) The difference between the median bonus remuneration of employees of the male gender and that of employees of the female gender is expressed as a percentage of the median bonus remuneration of employees of the male gender.

(e) The difference between the mean hourly remuneration of part-time employees of the male gender and that of part-time employees of the female gender is expressed as a percentage of the mean hourly remuneration of part-time employees of the male gender.

(f) The difference between the median hourly remuneration of part-time employees of the male gender and that of part-time employees of the female gender is expressed as a percentage of the median hourly remuneration of part-time employees of the male gender.

(g)The percentage of all employees of the male gender who were paid bonus remuneration and the percentage of all employees of the female gender who were paid such remuneration.

(h)The percentage of all employees of the male gender who received benefits in kind and the percentage of all employees of the female gender who received such benefits.

(i)The difference between the mean hourly remuneration of employees of the male gender on temporary contracts and that of employees of the female gender on such contracts is expressed as a percentage of the mean hourly remuneration of employees of the male gender.

(j) The difference between the median hourly remuneration of employees of the male gender on temporary contracts and that of employees of the female gender on such contracts is expressed as a percentage of the median hourly remuneration of employees of the male gender.

(k) The respective percentages of all employees who fall within each of:

1. The lower remuneration quartile pay band.
2. The lower middle remuneration quartile pay band.
3. The upper middle remuneration quartile pay band or
4. the upper remuneration quartile pay band

who are of the male gender and who are of the female gender.

Related article: The Gender Pay Gap Information Act 2021

While the above sets out the necessities of the gender pay gap legislation, reporting on it effectively requires the right strategy.

 

So, how do you conduct a gender pay gap analysis? 

Well, you can begin by splitting your gender pay gap reporting strategy into these five key steps:

Data Preparation

The Gender Pay Gap Information Act 2021 demands a lot of data. So, how will you collect and prepare it? Will you need to speak with managers in various departments? Is everything available online? When collating your findings, do so in line with procedures and pay periods.

Stakeholder Involvement

Do you need the input of stakeholders when preparing your report? If so, speak with all relevant parties as soon as possible. This will reduce the chance of challenges emerging in the future. 

Data Analysis and Assessing Your Pay Gap

Analyse the data you have gathered in line with reporting requirements. Uncover where pay gaps exist and try to gain an understanding of why they exist. Doing so will give you a head-start on the reasoning you must submit as part of your Gender Pay Gap report. 

Gender Pay Gap Reasoning and Communication

You might need professional advice on how to address pay gaps before you publish your report. For that reason, it’s best to develop your own narrative and prepare your report for scrutiny from third parties. Also, plan your communications strategy and messaging carefully to gain greater overall control.

Change Implementation

When pay gaps have been identified, and your report has been submitted, you will need to address the gaps. If you fail to clarify how you intend to make changes, you could find yourself at a disadvantage and facing scrutiny.

One last reporting factor is how you intend on reducing your business’s gender pay gap. Let’s look at what you can do. 

 

How to reduce your gender pay gap is another important consideration as the Act requires businesses to set out in its reporting:

1. in the employer’s opinion, the reasons for such differences in that employer’s case, and
2. (ii) the measures (if any) being taken or proposed to be taken, by the employer to eliminate or reduce such differences in that employer’s case.

As per the above, you must assess why a gender pay gap exists within your business. You can undertake a review of sector standards, the fluctuation of pay for a role, and your existing business policies to gain an understanding of this. 

Lastly, you should think about the future and plan accordingly. For instance, when you’re hiring new staff or undertaking performance/salary reviews, assess how to better align employee pay so you can close the gender pay gap within your business.

 

As a Workday Global Payroll Certified Partner trusted by FTSE 100 companies, SD Worx, formerly Intelligo will ensure that your payroll reporting is accurate and on time, every time. 

Our comprehensive reporting system has been designed to adapt to our clients’ needs. So, should you want to import ad-hoc data columns from existing spreadsheets, you can easily do so. And should there be an unfortunate mistake, our system will notify you so that you can correct it. 

You can also create ad-hoc reports in multiple formats, giving you the data you need in a timely and efficient manner. Other benefits of our payroll software include:

• Instant auditing
• Real-time updates
• Salary scales and shift patterns
• Employee self-service (payslips, P60s, etc.)
• Pro rata calculations

To find out more about our payroll reporting solutions, talk with us today!