COMMUNICATING YOUR GENDER PAY GAP A guide to navigating gender pay gap reporting, prepared by the Fawcett Society and Golin

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1 COMMUNICATING YOUR GENDER PAY GAP A guide to navigating gender pay gap reporting, prepared by the Fawcett Society and Golin

2 Golin is a leading PR and communications agency. For more information, practical advice and assistance in communicating your gender pay gap, contact Bibi Hilton, managing director at Golin: bhilton@golin.com The Fawcett Society is the UK s leading charity campaigning for gender equality and women s rights. For more information about how the Fawcett Society can support your organisation to get the most out of pay gap reporting contact: jemima.olchawski@fawcettsociety.org.uk

3 WHY SHOULD WE WORRY ABOUT THE GENDER PAY GAP? By April 2018, UK employers with more than 250 employees, in both the public and private sector, will have to publish their gender pay gap data. This information must be published on their own website and on a dedicated government website and they must now do this annually. Reporting the gender pay gap is a significant step forward for workplace equality. The average gender pay gap in the UK sits at 18%* with some sectors expected to report significantly higher gaps. There are many reasons organisations must take this issue seriously. Workplace inequality is not only unfair on employees; it poses a threat to the reputation and long-term success of every organisation. However, organisations should not see this as a chore, but rather an opportunity to effect positive change. By putting fairness at the heart of their business, employers have an opportunity to create a more gender equal workplace, properly reward performance and maximise the potential, motivation and satisfaction of their people, while opening them up to the best talent available to them. WHAT EMPLOYERS MUST REPORT There are six figures employers must disclose: - Mean gender pay gap - Median gender pay gap - Proportion of women and men receiving a bonus payment - Mean bonus gender pay gap - Median bonus gender pay gap - Proportion of women and men in each quartile of an employers pay structure *Office for National Statistics

4 THE COMMUNICATIONS CHALLENGE Employers risk criticism from the public, the media and their own employees over the issue of the gender pay gap. They may find relationships with investors, clients, customers, partners and suppliers are jeopardised by a toxic gender pay gap. They may also find their ability to attract and retain the best staff is severely hampered. All these risks will be heightened if they fail to communicate what they are doing to fix the problem. While a great many organisations will initially find themselves in the same situation, with problematic gender pay gaps expected to be commonplace in many industries. Those that do not make meaningful progress and who do not communicate what they are doing to redress their gender pay gap will find themselves in an increasingly vulnerable position. A methodical approach is required to understand and then resolve any gender pay gap, while communicating clearly and honestly what the issue is and what steps are in place to redress it. Planning for this cannot start soon enough and should involve decision-makers and teams from across the organisation to ensure consistent delivery of messages both internally and externally. This is an opportunity for organisations to put right a historical wrong in the workforce and present themselves as a progressive employer. Handled well, and with the right measures in place to address even the most significant pay gap, employers can build stronger relationships across their organisation, shape their reputation for the better and make themselves more attractive to the best talent.

5 HANDLING INTERNAL AUDIENCES Employees may feel anger, confusion and concern when faced with a high gender pay gap. Initial shock and disaffection may encourage some to leave, or even threaten legal action. Others may become less motivated, especially if they feel the situation is not being properly addressed or their organisation is keeping them in the dark. But these issues need not arise. By effectively planning to address the gender pay gap and clearly communicating what is being done, employees can be reassured and motivated. The story can be one of positive change and progress. Employers who view this as an opportunity to address their gender pay gap and improve workplace equality can strengthen their relationships with all employees. In some instances that may require significant changes to working and hiring practices, from improving flexible working arrangements to investing in returnship programmes or encouraging job sharing to improve female representation at all levels of the business. Consulting with employees and enlisting the whole organisation in efforts to improve equality will also be hugely beneficial, as will keeping everybody informed with consistent, clear and honest communications on a regular basis. A comprehensive internal communications plan must span face-to-face line management meetings, team meetings, online and social media channels to ensure everybody is kept up to date and included. Organisations should also ensure internal messages are consistent with external messages. HANDLING EXTERNAL AUDIENCES It is now easier than ever to find out how organisations treat their employees and gender pay gap data will be an important factor in shaping the opinions of recruits, investors, potential clients and customers alike. Its impact will be felt from tendering for work to recruiting talent. It will also be powerful information for journalists, politicians and even competitive organisations looking to name and shame the worst offenders. Employers should ensure their management teams and departments such as PR, marketing and HR work together to put in place a plan that meaningfully improves their gender pay gap, and a plan to communicate what they are doing. Committing to resolve this issue is vital, but it is also important organisations are prepared to share their commitment publicly and head off any issues that could arise. All channels to the public should be considered and consistent, from the creation of messaging for the media, such as press releases, statements and Q&A documents for spokespeople, to the prominence given to the issue in annual reports, on the company website, in jobs ads and in communications with customers, clients and influencers such as politicians.

6 HOW TO ACE YOUR GENDER PAY GAP

7 ADDRESS COMMUNICATE EVALUATE Establish what your gender pay gap is, who should be included in your calculations, who it affects most directly and why it exists. It will be impossible to credibly answer questions about your gender pay gap, or plan to close it, without detailed, in-depth information. Genuinely understanding the causes of your pay gap will require a deep dive into the data. Do not bury your head in the sand or hope the issue will go away. Establish what your numbers are, own the problem, and develop a credible plan to improve the situation. Make it an organisation-wide effort and see this as an opportunity to unite everybody behind a shared goal of improving workplace equality, by putting in place a plan that is deliverable, realistic and consistently communicated to everybody. Communicate clearly and consistently with your own teams and external audiences. If you do not shape the conversation around your gender pay gap, others may, from angry employees to critical journalists, or organisations competing for the same talent and business as you. Be clear on what your gender pay gap is and most importantly frame that information within the context of what you are doing to improve it. Do not try to run and hide from the truth. No organisations should try to spin their way out of trouble on this issue; all communications must be honest and underpinned by a firm plan to meaningfully improve the gender pay gap. Similarly, do not try to justify it, explain it away or bury the issue in business speak. Focus on what you are doing to improve the situation. Organisations who appear evasive will invite further reputational damage upon themselves. Organisations cannot turn around a gender pay gap overnight but they will be judged on how well they communicate a clear plan to redress the issue and how effective that plan proves. It is important therefore to show meaningful progress, however modest it may be at first. Organisations must ensure ongoing evaluation and share proactive updates with employees. Don t wait for employees to ask. Ongoing evaluation will also help organisations determine if initiatives are working or if they need to be changed. If changes are required, ensure they are communicated clearly and the reasons for the change explained. This will be a sensitive time for employers and employees, so don t do anything to put extra strain on that relationship. Ensure you are monitoring conversations around your gender pay gap and ensure internal feedback channels are open and effective. Be prepared to listen to all feedback and respond as appropriate. The Fawcett Society and Golin can help you to respond effectively, contact us using the details on the first page of this booklet.

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