Employee benefits technology and data analytics business Psyon, which is part of Howden Employee Benefits & Wellbeing, has launched Psyon Pay Intelligence Services to help employers with their gender pay gap reporting and address any imbalance, as well as helping those that want to understand and report other pay gaps, which may become statutory in the future.
Two new solutions, Psyon Gender Pay Gap Reporting and Psyon Pay Intelligence will enable organisations to provide greater transparency around pay within their organisations which can support their employer reputation. Employers who inaccurately report or failure to submit data on time may be fined. They will also help companies improve their diversity and inclusion strategy by providing detailed and relevant analysis of workforce and pay data.
Gender pay reporting has been a legal requirement for private and voluntary-sector employers with 250 or more employees since April 2017. However, the overall gender pay gap has moved only marginally during this time.
The gender pay gap in 2019 among full-time employees stood at 8.9%, with little change from 2018, and a decline of only 0.6 percentage points since 2012[i]. The gender pay gap among all employees fell from 17.8% in 2018 to 17.3% in 2019 and continues to decline.
Cheryl Brennan, Director of Corporate Consulting at Howden Employee Benefits & Wellbeing says,
“Gender pay gap reporting creates transparency and encourages employers to address their activities and aspects of their organisational culture that are driving an imbalance in pay, and galvanizes them into taking corrective action”
“Many employers are investing time and money in a variety of initiatives to reduce their pay gaps, including focussed recruitment and retention strategies, and adoption of improved flexible working practices, as well as learning and development activities underpinned by diversity and inclusion agendas.
“However, without a spotlight on the underlying reasons for their pay gaps, businesses run the risk of investing in design and implementation of a high-cost strategy with disappointing results.”
It remains to be seen whether statutory reporting of ethnicity pay gaps will come into force soon following the Government consultation that closed last year.Figures from the Office for National Statistics[ii] in 2019 showed that white British workers earned on average 3.8% more than workers of other minority ethnicities, rising to 20% for some groups, including workers of Bangladeshi or Pakistani origin.
Annabel Francis, Head of Data & Analytics at Psyon adds,
“Workplace diversity and it’s positive impact on productivity is well-evidenced, yet it remains a challenge for many. An increasing trend towards regulation that highlights pay disparity between different demographic groups puts employers in the hot seat, placing them under increasing pressure to disclose pay gaps and how they intend to address them. Several organisations are now publishing their ethnicity pay gap data to demonstrate their commitment to transparency, and their commitment to building diverse and inclusive organisations, and others will follow.”
Psyon Pay Intelligence Services, provided by employee benefits technology and data analytics company, Psyon who are part of Howden Employee Benefits & Wellbeing, is helping organisations address both the gender pay gap and diversity and inclusion by assisting with reporting regulations and uncovering where to target remedial efforts to bringabout positive change.
The Psyon Gender Pay Gap Reporting tool removes the complexity of calculating the pay gap, has full regulatory compliance and includes headline findings, as well as a template to help position and communicate the pay gap within the business.
The Psyon Pay Intelligence tool helps companies develop a diversity and inclusion strategy by identifying hot spots that will enable them to focus the implementation of remedial actions within areas of the business that most significantly contribute to pay imbalance, as well as establishing standard key performance indicators to measure progress.
For more information contact Annabel Francis (Annabel.email@example.com) or visit https://eb.howdengroup.co.uk/download-psyon-pay-intelligence-services.