Gender and diversity pay gap reporting: A key metric for DE&I

Gender and diversity pay gap reporting, in simple terms, involves the collection and analysis of data regarding wage disparities among employees based on gender, race, ethnicity, age, or other characteristics. This report serves to reveal any discriminatory practices in compensation within an organisation.

Typically, a gender and diversity pay gap report takes into account salaries, bonuses, and benefits to identify differences in compensation among various demographic groups with similar roles and responsibilities. This report offers a transparent insight into an organisation's dedication to diversity, equality, and inclusion (DE&I) initiatives.

Why diversity pay gap reporting is of importance for DE&I?

A gender and diversity pay gap report plays a crucial role in assessing and quantifying progress of diversity, equality, and inclusion (DE&I) initiatives within an organisation. Let’s delve into specifics of the reason as to why below.

Transparency & accountability

Reports on pay gaps reflect reality and shed light on the differences in pay among different demographics. They provide transparency and hold organisations accountable for addressing these inequalities. This is the first step towards acknowledging inequalities that exist in the system, a sign that the organisation is committed to taking action to mitigate inequality, and a willingness to be responsible for progress.

Data-driven insights

These reports contain measurable data that provides insights into discrepancies and are instrumental in pinpointing specific areas where improvements are needed. Such data is valuable for devising interventions and ideal strategies to address problem areas effectively.

Goal setting

The data harnessed from these reports can serve as the basis for defining specific, measurable, and time-bound goals for the future, thereby propelling the DE&I initiatives of the organisation in the right direction.

Legal & regulatory compliance

Gender and diversity pay gap reporting is an obligation by law in many places, non-compliance to which may bring penalties and legal complications. Hence regular reporting is the best way to avoid such consequences.

Benchmarking and measuring progress

Gender and diversity pay gap reports reveal pay gap data which can be compared to industry standards. This benchmarking allows organisations to evaluate their standing among peers and identify scope for improvement.

Timely pay gap reporting provides organisations with data to analyse their progress over time and measure the impact of their DE&I strategies.

Enhance reputation

Pay gap reports cast organisations in a positive light as an employer that proactively work towards minimising disparities and promote DE&I initiatives. This can enhance their reputation and give them an edge in securing a diverse and talented workforce.

From survey to solutions

Undoubtedly, gender and diversity pay gap reporting is a vital metric for assessing DE&I within an organisation and should be conducted regularly. However, the findings of our extensive survey, a key component of our Annual Trends Report, reveal a different reality. We found that only one-third (33%) of organisations carry out gender and diversity pay gap reporting. This revelation is concerning as this report presents accurate data for benchmarking and measuring improvements while highlighting areas of concern.

In alignment with the significance of DE&I, Anwen Robinson , Senior Vice President of Accelerator at OneAdvanced, aptly emphasises its importance: “DE&I is important to us because we recognise the value of different experiences and thought processes to enhance creativity and innovation in our business, as well as helping to foster a more balanced working culture, happier workforce and greater employee engagement.”

At OneAdvanced, we wholeheartedly echo the importance of DE&I, and we recognise the critical role that gender and diversity pay gap reporting plays in achieving it. Our Trends Report dedicates an entire section to DE&I and its relevance to businesses. It also presents survey statistics that unveil the current workplace realities in the UK. To gain a genuine understanding of these insights, download your copy today.