Mandatory pay audits are not the answer

The Women and Work Commission are right to reject compulsory equal pay audits and to focus instead on the complex web of issues that contribute to the persistent gender pay gap, according to the Chartered Institute of Personnel and Development (CIPD).

Equal pay audits alone will not reduce disparities between men and women in the workplace. It is only when employers explore the underlying issues that processes can be improved and fairness achieved, the Institute argues.

Dianah Worman, CIPD Diversity Adviser, says, ìLegislation is often seen as the main lever for change with reference to discrimination in the workplace but those arguing for compulsory pay audits need to recognise that it is not always the answer. It can often lead to lowest common denominator solutions to complex problems. Legislation alone will not change culture and attitudes, and is likely to lead to a minimalist, box-ticking approach that does not tackle the underlying problem or provide true fairness for women at work.

ìSmart employers will already carry out regular pay audits. Research shows that treating people fairly is a key factor in improving employee satisfaction and employee attitudes ñ both contribute to better business performance. So it is in the interest of employers to explore the underlying issues that are often highlighted in equal pay audits, such as poor diversity training, weak performance management systems and biased appraisal processes in order to create a culture based on fairness.

ìAchieving the business benefits linked to a fair workplace culture, such as better staff retention and increased productivity, depends on commitment from both employers and line managers. Line managers should be regularly updated and trained on pay and benefit issues so they can communicate effectively with employees, understand their needs, create realistic expectations and achieve equality in the workplace.î

The 2006 CIPD Reward management survey found over half of employers (54%) had carried out or were planning to carry out an equal pay review. Findings also showed that more employers are making sure equal pay reviews are carried out regularly and including variants other than gender, such as age and race.

Worman adds, ìEmployers should begin from the principal that all individuals, not just women compared with men, should receive equal pay for work of equal worth. Equal pay reviews must therefore look beyond gender and explore other diversity dimensions such as age, ethnicity, and disability for example. This will help employers spot circumstances where individuals are paid unfairly, for no justifiable reason.

What satisfies one employee does not always satisfy another. Employers should think about how they can create a fair pay and benefit strategy to accommodate different groups. Flexibility is central to business success and organisations will find themselves needing to offer more flexibility in terms of working patterns and benefits. This will help employers in their bid to attract a wider pool of individuals and compete in the war for talent.î