The All-in Diversity Project’s mission is to be the global resource for gender, diversity and inclusion for the Gambling industry. Our Vision is to shift the paradigm for inclusion across the gaming industry through transparency, measurability and actionable tactics that can be adopted globally.
We can’t fix what we can’t measure.
As part of that move towards transparency, the UK’s Gender Pay Gap reporting, will paint a picture for a starting point in terms of equal pay across various businesses. Once we create the transparency, we must set benchmarks for improvement. It’s all about how our industry will handle transparency.
If you don’t know about the UK’s legal requirements for businesses to report their gender pay gap data, you should. Things are about to get pretty interesting around here… Never before have businesses been required by law to calculate and comment on the difference of how they pay their men vs. their women – both in terms of salary and bonus. Most critics are calling it “unprecedented transparency” – not a phrase we hear in business very often.
In summary, the UK government passed legal requirement that all companies with 250 or more employees (public, private or charitable) must publish six calculations showing average pay gap including bonus by March 2018. That mandate affects over 9,000 businesses throughout the UK and over 15 million people. The results must be published on the employer’s website and a government website with an appropriate person such as the CEO delivering a statement about the numbers.
There are a few, very clear reasons for this effort:
Economic: It’s predicted that reducing the pay gap would see over 800,000 more women in the workforce and add £150 billion to the economy by 2025.
Competition: The UK currently ranks 20th on the World Economic Forum’s Gender Pay report behind the likes of Finland and Norway (expected) but also behind the likes of France, Germany and Rwanda!
Moral: The Prime Minister has set a number of initiatives (this being one of them) to tackle the injustices for women in the workplace.
There are nine months left before businesses must publish their results and most will wait 8.95 of those months before going public. The hope will be that they get lost in all the press, that no one notices them in all the fuss. There has been criticism about the mandate:
“It lacks ‘teeth.’”
“No one will really do anything about shortening the gap.”
“It’s another case of government overstepping.”
“Gender pay data is very complicated.”
“It’s not the whole story.”
Yes, all of that may be true, but this will become a case for how businesses handle this exposure, not actually about the numbers themselves. Transparency is transparency. Your shareholders, your customers, your employees and your potential employees will want to know how you will handle this challenge.
Now is the time to start formulating your strategy for what is to come. In the short term, businesses must asses the risks involved in terms of corporate reputation, how any narrative around the numbers is interpreted as well as any sort of employee churn or legal claims that may follow. In the long term, businesses must assess the legitimacy of their succession plan and what the costs to the bottom line will be to implement change.
At the end of the day, Gender Pay Gap reporting will be about how businesses handle this “unprecedented transparency.” Like I said, this is about to get pretty interesting.
Stay tuned for more updates and posts about Gender Pay Gap Reporting.
Kelly Kehn, Co Founder; All-in Diversity Project