Companies have been urged to review their pay systems in a bid to improve the continuing pay inequality between men and women.
The British Chambers of Commerce (BCC) and the Equality and Human Rights Commission (EHRC) have emphasised the importance of pay transparency. Commissioner at the EHRB, Dr Jean Irvine, said: “Employers need pay systems that are both transparent and fair. While transparency is not enough in itself to reduce the pay gap between men and women, it does provide clarity; it is difficult, if not impossible, to resolve a problem that cannot be seen.
Forty years since the Equal Pay Act, women who work full time in the private sector are still paid on average 21.6% less per hour than men.
Irvine added: “What we ask of small and medium size employers is not difficult; it takes minimal time and effort but can offer a real return. Linking equal work to equal pay will see employees rewarded fairly for the work they do. Employees will enjoy the benefits of working for a company which actively promotes equality while employers will protect themselves from a potentially costly and time consuming equal pay claim.”
The EHRC and the BCC have published a guide to help organisations better understand the process.
David Frost, Director General, of the British Chambers of Commerce, said: “Businesses want to pay people fairly for the job that they do. This guidance should help smaller businesses analyse any pay gap and make any changes required by law.”
He concluded: “Taking action now to make pay systems transparent and fair should help businesses recruit the best talent to enable the private sector to drive economic recovery.”