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If you would like comment for media articles, please contact [email protected] and we will be happy to assist. Through our app, we can also provide information updated daily on the UK gender pay gap reporting position.
12 February 2020
Edinburgh-based diversity tech start-up Spktral has announced a number of new appointments, with Fiona Hathorn, CEO Women on Boards (UK) joining the board as a non-executive director.
Spktral launched in November last year with a funding round backed by a number of angel investors including Paul Atkinson, chair of Taranata Group plc. The company has developed a cloud-based platform to help organisations use their data to better understand and address inequality across their workforce.
Spktral offers a number of services, including the preparation of gender pay gap reports. It has also developed a free-to-use application that allows anyone who is interested to view the gender pay gap data for sectors and companies since it became a statutory requirement in 2017. With eight weeks to go until the deadline this year, only around 9% of organisations have reported with the data is showing a marginal improvement on last year.
Spktral has also appointed an advisory board comprising former EY Managing Partner and Head of Talent for UK and Ireland, Liz Bingham OBE; former HR Director of Legal & General Capital Management, Tracey Ashworth-Davies; and Alan Plunkett who led the development and design of the gender pay gap reporting service for gov.uk.
Recognising that more needs to be done to close pay gaps, the UK government is looking to expand the reporting requirements through the Equal Pay Bill which could see organisations with 100 or more employees being required to report on ethnicity, and publish a document requiring them to set out what actions they will take to reduce differences in pay.
According to Fiona Hathorn, too many organisations are still not implementing strategies that will in time close the gap. “Addressing inequality is complex and requires a concerted effort from management at all levels. The gender pay gap reporting requirements provide organisations and their stakeholders with valuable insights into their progress, and a benchmark from which to work from. Ongoing data analysis and measurement is essential to delivering meaningful change and the reason I joined Spktral”.
Spktral co-founder Innes Miller added, “Through Fiona’s work with Women on Boards, she brings valuable knowledge of the effective actions organisations can take to address inequality. This coupled with the experience of Liz, Tracey and Alan will provide the thought leadership to expand our services into new areas to ultimately support the needs of business leaders and stakeholders who understand the importance of delivering tangible progress in this area”.
As part of the broader sustainability agenda, organisations are seeing growing pressure from external stakeholders to create fairer and more balanced organisations. Recently, Goldman Sachs announced that it would not IPO companies that could evidence diversity on their boards.
20 April 2020
Innes Miller, chief commercial officer of gender pay pap software and reporting specialist Spktral, says the crisis could help progress sustainability and equality.
For full article click here.
Keep up to date with what the team are doing.
29 January 2020
We were invited to attend the Addelshaw Goddard Governance & Compliance Forum to discuss workforce-led corporate reporting requirements as part of a report published by the Financial Reporting Council. Issues including executive pay and remuneration, Companies Act 2006 section 172 (1), and diversity and inclusion were all covered.
21 January 2020
The Scottish Business Pledge is a values-led partnership between Government and business that is based on boosting productivity and competitiveness through fairness, equality and sustainable employment. In January this year, we spoke at an event on gender pay gap reporting – something all signatories must commit to. If you would like a copy of the slides from all the speakers on the day, please email us at [email protected]
5 December 2019
We were invited by PwC to attend the Scotland launch of the Tech She Can Charter – an important PwC led initiative supported by a number of leading organisations including RBS, Morgan Stanley and JP Morgan that’s designed to increase the number of women working in technology roles in the UK. For the latest information, please follow #techshecan
20 November 2019
Independent School Bursars Association (ISBA) HR Conference
In partnership with Paydata, we provided an overview of some of the issues independent schools will face from a pay equality perspective in light of the changes taking place in teachers pensions. If you would like to receive a copy of the slides, please email us at [email protected]
13 November 2019
We were invited by our partner Connor to their roundtable discussion on organisational health. Participants included representatives from Women on Boards UK, Accenture and The Huxley. The discussion covered what business leaders can do to make their organisations more inclusive, diverse and equal – and the benefits and advantages that can be gained by doing so.
7 November 2019
Wedlake Bell - Gender Pay Gap Reporting and Beyond
Breakfast event to discuss the key issues organisations must consider if they want to close their gender pay gap. Included representatives from a number of leading UK legal firms, retailers, hospitality, food and beverage and pharmaceuticals.
31 October 2019
Our Chief Commercial Officer, Innes Miller gave an update at the Hollyrood Insights Women Mean Business Forum on the progress being made by companies in closing the gender pay gap and looked at some of the actions organisations can take to address gender inequality. If you would like to obtain the slides used for the presentation which included the steps organisations can take, please contact us at [email protected]
We have developed content and resources that will help you with your pay gap reporting.
Non-cash benefits not usually included in wages and usually found in the form of ‘perks’ or ‘fringe benefits’ for example company cars or private medical insurance. These are also excluded from the calculations.
There are two different types of bonus: 1. Bonuses paid as part of an employee's pay within the Relevant pay period and 2. Bonuses paid within the Relevant bonus period. These are two very different bonuses. For example: Snapshot Date = 5 April 2018 - Jane is paid £17,000 in her April payroll - £5,000 Ordinary pay and a £12,000 bonus for her performance during the last 12 months. This is used to determine Gender pay gap and NOT Gender bonus gap. If the £12,000 had been paid in March then it would contribute to Gender bonus gap calculations - see ACAS guide.
The Equality Act 2010 defines this as: Employees (those working under a contract of employment), workers & agency workers (those with a contract to do work or provide services) & some self-employed people (where they have to personally perform the work).
This concerns the pay differences between men and women who carry out the same or equivalent work. It is unlawful, under the Equality Act 2010, to pay people unequally because of their gender.
This is the source document from which all terms and guidance should be sought. Most government departments, the armed forces, local authorities, NHS bodies and many others must follow The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 and all other private, voluntary and public sector employers must follow The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 - use the shortcuts to access these documents.
Any Relevant Employee who is paid their usual full basic pay (or pay for piecework) during the relevant pay period. If they are paid less due to leave then they do not meet the criteria; If however, they are paid less for reasons other than Leave (i.e. being on strike) then they are counted. If the Relevant Employee receives no pay during the Relevant Pay Period then they discarded from this group. Full-pay Relevant Employees are used to determine the Gender Pay Gap and Pay Quarter figures.
This is exactly the same methodology as gender pay gap, but it uses pay data from bonuses paid in the 12 month period ending with the Snapshot Date.
The difference between the average (or middle) man and woman. The values for each can be calculated by either adding up every man or woman's pay and dividing it by the number of men/women (Mean); or it can be calculated by ranking all the men/women in order from highest pay to lowest pay then choosing the middle person in each list (Median). The gender pay gap can be described as either (a) percentage or by (b) a more intuitive description of the relationship between the two values. To calculate (a) the legislation says to use the formula: (male-female)/male where male and female are the average pay values described above.
This is the report required by the legislation. As a minimum it should contain: - gender pay gap (median and mean) - pay quarter figures - bonus gap (median and mean) - percentages of men and women who received a bonus - signed declaration stating that the above figures are thought to be accurate (not required for Public Sector)
Any loan from an employer to an employee such as season ticket loan are not included in the calculations.
This includes: Annual leave, maternity, paternity, adoption, parental or shared parental leave, sick leave, special leave and any other form of leave (e.g. study leave or sabbaticals).
This is the sum of all values divided by the total number of values. The Mean can be heavily affected by employees who earn either a lot more or a lot less than most. i.e. a CEO who earns 10x the normal wage will increase the mean average pay when looking at all employees.
This average is calculated by listing all employees in order from highest to lowest paid and picking the value which is physically in the middle of the list. Using this method means that the average is not affected by a few employees who get considerably more or less than the majority. Statistically this is a better measure of average pay.
Ordinary pay includes basic pay, allowances, pay for piecework, pay for leave and shift premium pay. It only includes money payments, so anything that is not money (such as benefits in kind or securities) is excluded. Gross amounts should be used after salary sacrifice.
This is an employee who would expect to receive performance/profit-related remuneration rather than basic pay. Think of partners of a law firm, accounting firm or a professional services organisation who are not under a normal contract of employment, but whom receive a share of the profits of the organisation.
For the purposes of the legislation a Pay Quarter is one of four pots into which each employee must be placed. This is accomplished by listing every employee from highest to lowest pay. Identifying the middle of the list and then further identifying the middle of the two lists formed above and below the middle. The result is four pots each containing 25% of the Full Pay Relevant Employees. Insights can then be drawn about the ratio of men and women in each of the four pot vs the overall ratio. For example, to have 0% median pay gap, you would expect to find the same ration of men and women in each of the four pots and the overall ratio.
The period of 12 months ending with the current Snapshot Date: Private & third sector = 6 April - 5 April in same year as Snapshot Date | Public sector = 1 April - 31 March in same year as Snapshot Date.
Relevant employees are all employees employed by the Relevant employer on the Snapshot Date of any given year, except for partners of a firm (i.e. LLP). This employee population is used to calculate the Gender Bonus Gap and the ratio of Bonuses Paid to each gender.
Any employer who has 250 or more employees on any Snapshot Date. Employers who have close to 250 employees should apply this rule every Snapshot Date to ascertain if they are required to report.
Any period (usually a week, fortnight or month) during which the Relevant Employer pays the Relevant employee Ordinary pay and in which the Snapshot Date falls. In practice, if an employee recieves Ordinary pay for the month of April and the employer is private sector then the Snapshot Date of 5th April is covered by this period and the conditions are met; for Public sector it's 31st of March, so this would most likely be the March payments and not April.
Usually an agreement between an employer and employee to change the terms and conditions of employment to reduce the employee’s entitlement to cash remuneration – usually in return for some form of non-cash ‘fringe benefit’, perk or benefit in kind that is not reflected in their salary or wages. Ordinary pay is calculated after any Salary sacrifice is taken off. Examples could be: Cycle to work; Childcare vouchers or even certain pensions.
This key date is the basis for many calculations: an employee has to be employed on this date, the relevant pay period must cover this day and it’s the date from which a relevant employer has one year to publish their gender pay gap report.
Stands for Science, Technology, Engineering & Maths - STEM subjects or occupations are areas whose core focus is in one of these four areas.
Typically an employee who doesn't work (and get paid) for every month of the year, but who gets paid in 12 equal instalments. Because of the missed months their adjusted hourly rate of pay would be lower because it would reflect a whole year and not the reduced period they were actually paid for. By supplying actual weeks worked and leave weeks paid for, the software calculated a representative adjusted hourly rate of pay using the guidance contained in the ACAS guide.
These are the hours that an employee would normally work each week. If there is a contract of employement stating the weekly hours then this can be used for the calculations. If one does not exist then the Relevant Employer should use the hours each employee would normally work; however, if there is no pattern then the last 12 weeks hours can be averaged. If an employee gets a set hourly rate then this can be used and the calculation need not be carried out. However, if this methodology is to be used then the specific employee cannot have any further pay modifications such as: Allowances; Salary Sacrifices; Bonuses paid in Relevant Pay Period.