PAY DISCRIMINATION
IDS looks at what equal pay audits have revealed
Equal pay audits can produce practical policy initiatives where they are conducted, but the majority of private sector employers still have to be convinced of their value. That's the main conclusion to emerge from a report by Incomes Data Services.
According to this three-page report by Incomes Data Services, the evidence indicates that, without legislation, many companies will not voluntarily undertake equal pay audits -- indeed, one study cited by IDS suggests that as many as 60% of organisations had no plans whatsoever to conduct a review.
Equal pay audit findings
Despite the "slow overall progress", some major public and private sector employers have already undertaken equal pay reviews. A common theme to emerge from their pay audits is that pay gaps tend to widen at more senior levels within an organisation.
Equal pay reviews by the National Audit office and Nationwide have uncovered that such gender pay gaps at senior levels can be due to earlier recruitment procedures.
Pressure for compulsory audits set to intensify?
IDS concludes with a stark warning for those in the business community who want to avoid the introduction of compulsory pay audits:
"If the slow take-up of the voluntary, best practice approach favoured by the government continues and targets are not met, pressure to make equal pay audits mandatory could well increases. Unless more pay audits are conducted, the lack of transparency in pay systems will allow pay inconsistencies to remain hidden and there is little prospect that the gender pay gap will be closed."
Want to know more?
Title: "Equal pay reviews: an audit of progress", IDS Management Pay Review, November 2003, Incomes Data Services.
Availability: Call IDS customer services in London, tel: 020 7250 3434.
Incomes Data Services is an independent research organisation providing information and analysis on pay, conditions, pensions, employment law and personnel policy and practice in the UK and rest of Europe. For more information about IDS jump to www.incomesdata.co.uk