Gender pay reporting ‘demands clarity’

The regulations, which are expected to affect 8,000 employers throughout the UK, will force companies with 250 employees or more to highlight pay inequality between male and female employees.

Manufacturers hold their hands up to having gaps in their knowledge on gender pay reporting requirements

EEF director of employment & skills policy Tim Thomas

Results, including the mean and median gender pay gap, the mean bonus gender pay gap and pay quartiles, will first be published in league tables in 2018.

In a submission to the Government Equalities Office (GEO) consultation, EEF said there should only be a single definition of an employee and a single definition of pay, so as to avoid confusion.

Highlighting manufacturers' understanding of the new rules, a recent survey conducted by the EEF found that just 7% of manufacturers said they were completely up-to-speed on the reporting requirements, while 44% said they needed to know more and 36% had ‘significant gaps’ in their knowledge.

“Manufacturers hold their hands up to having gaps in their knowledge on gender pay reporting requirements,” said EEF director of employment & skills policy Tim Thomas.

"However, the draft regulations hinder, more than help, to fill these."

Yet despite the knowledge gaps, 47% of manufacturers said reporting on gender pay is a ‘great opportunity’ to benchmark their companies amongst others.

“Industry has for some time supported a range of measures to address the existing gender pay gap, which remains significant," Thomas added.

"The gender balance within industry is improving but there is clearly still some way to go."