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CIPD comments on BEIS Select Committee ‘Gender Pay Gap reporting’

Commenting on the recommendations from the Business, Energy and Industrial Strategy Select Committee that organisations should be required to publish a narrative and action plan as part of normal reporting requirements, Claire McCartney, Diversity and Inclusion Adviser at the CIPD, the professional body for HR and people development, comments:

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“While 10,000 organisations have now reported their gender pay gap, we know that a significant proportion have failed to provide a narrative or action plan alongside their numbers. This is concerning, as without them, firms cannot be held accountable for ensuring that real progress is made towards gender parity throughout their organisation. We therefore welcome today’s recommendations from the Business, Energy and Industrial Strategy Select Committee that organisations should be required to publish a narrative and action plan. The new requirement means that firms will need to take the time to understand the reasons why the gaps are there, think about what needs to be done sustainably to reduce them and then take meaningful action in the areas that will make the biggest difference.

“Efforts to close the gender pay gap should be knitted into the fabric of the organisation at every level, so we also support the suggestion of making those at the top more accountable, such as through stretching targets for CEOs and senior leaders. If organisations are serious about closing their gender pay gaps, it’s only right that those at senior levels should be held accountable and play a more significant role in the efforts. Making these KPIs annual and not quarterly or half yearly will protect against short-termism and the tendency for quick wins.”