Gender pay reporting ìno magic bulletî to solve the gender pay gap, warns CIPD

Responding to todayís Equality Bill, the Chartered Institute of Personnel and Development (CIPD) says it is dishonest of policy makers to suggest that gender pay reporting can be solved by a ëmagic bulletí of gender pay reporting aimed at employers.

Charles Cotton, CIPD Reward Adviser says: ìGender pay reporting is not the answer to the gender pay gap. The pay gap is a deep-seated and complex problem, as the Government commissioned Prosser review showed which made 40 recommendations to address the issue. Choices made at school, choices of what qualifications to pursue, careers advice and cultural norms have a far greater impact in pushing men and women down different career paths than discrimination in the workplace. And there are basic realities about career and life paths that mean the actual, like-for-like pay gap is not as great as some of the sensationalist headline figures suggest.

ìHowever, it is in the interests of business for the gender pay gap that does exist to be tackled. But it is dishonest of policy makers to imply that it can be solved by some magic bullet aimed at employers. Voluntary pay reporting, with the big stick of compulsory reporting looming in 2013, will do little more than create bureaucracy and fuel employment law claims.

ìGovernments like quick fixes to complex problems, but this is a case where that simply wonít work. Government should work with employers to promote the undoubted business case for diversity, which, effectively done, will help level the playing field by breaking down occupational segregation. We also support measures to ban gagging clauses that prevent people from having open conversations about pay. While we think universal pay reporting is unnecessary and counter-productive, we donít believe that talking about pay should be treated as a dirty secret and banned.

ìOpen and transparent pay structures encourage employers and employees to focus on ëwhy and howí they are being rewarded rather than a crude and unhelpful over-focus on ëwhatí they are paid. Real equity in the workplace will be furthered more by a focus on the ëhowí rather than the ëwhatí. This means that more employers need to start adopting a strategic and holistic approach to reward and having a conversation with their staff about what values, behaviours, skills and performances are required by the business and how they will be rewarded and recognised. Employers also need to ensure that their talent development and management strategy meets both the needs of the business and a diverse workforce.

ìMore importantly, though, Government needs to do more to recognise the enormous role played by public bodies in the development of childrenís and young adultís aspirations and career paths.î