PCS is happy to assist with any specific queries on equal pay auditing.
Detailed advice on equal pay auditing has been issued by the Equality Human Rights Commission (EHRC) attached to the Code of Practice on Equal Pay.
The pay system should:
The job evaluation system should:
The EHRC advises that whatever the size of the organisation and whatever kind of equal pay review process is used, it should include:
If the exercise does not include these elements, it cannot claim to be an equal pay review.
They go on to point out that a review is not simply a data collection exercise, but must also entail a commitment to put right any sex based pay inequalities and have the support of managers with the authority to deliver the necessary changes.
The EHRC model has five steps:
Listed below are some standard types of data that should be collected and analysed when auditing pay (it is based on gender, but the same analyses can be used for disability and ethnicity).
These basic data should be supplemented by other data relevant to your particular organisation, especially if specific problems have been identified.
It is sometimes helpful to do a more detailed analysis of particular grades, or to collect data on length of service, earnings of part-time workers etc.
A consistent approach should be adopted, for example using hourly rates or full-time equivalent annual salaries and specifying the type of analysis - e.g. median or mean averages, so that comparisons are meaningful.
Each of the following elements of the reward package should be assessed on the amount, criteria and level of access available to men and women in the organisation, the proportion of men and women who receive this element and the average amounts received.
Proposals need to be checked on how they are or will be implemented and the impact they have or are likely to have. In terms of equal pay law, it is how pay practices actually affect pay that matters - not the intention behind them.
Any gaps of 5% or more, or patterns of 3% or more, should be examined more closely to establish whether they are genuinely caused by factors unrelated to gender or whether remedial action needs to be put in place.
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