How to measure and report a gender pay gap

Author: Mark Crail

XpertHR editor: Susie Munro

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• Understand what the gender pay gap is, and the factors that can influence it - and appreciate that most organisations will have a gender pay gap.
• Ensure that you know which gender pay gap data you will need to report, and which employees need to be taken into account in relation to the different calculations.
• Make sure that the finance department understand which data will be required, and involve other relevant departments, such as corporate communications, from an early stage.
• Gather the data on "full-pay relevant employees" required to calculate the gender pay gap, and calculate each employee's hourly rate of pay.
• Calculate the organisation's mean gender pay gap and median gender pay gap.
• Gather the data on "relevant employees" required to calculate the gender bonus gap.
• Calculate the organisation's mean gender bonus gap and median gender bonus gap, and the proportion of men and women paid a bonus.
• Calculate the proportion of male and female "full-pay relevant employees" in quartile pay bands.
• Be ready to report and explain your gender pay and gender bonus gaps.
• Consider using the Gapsquare gender pay gap reporting service to receive a confidential bespoke report based on your raw data, setting out the figures you need to report.