Gender pay auditing

1. Gender pay auditing Mary Connaughton, IBEC

2. Initiative Put spotlight on pay structures Increase employer understanding of gender pay issues In employer and employee interest that pay systems are non-discriminatory • free from gender bias

3. Enabler Funded by the Equality Mainstreaming Unit which is jointly funded by the European Social Fund 2007-2013 and by the Equality Authority Investing in your future

4. Gender pay Pay structures and their evaluation a complex issue Working group of leading employers • Causes of gender pay gap • Practicalities of carrying out an audit at organisational/job level • Evidence and effects

5. Value of an audit tool Tool for employers to implement a review of pay from a gender perspective • Monitor equity and fairness of pay structures • Highlight potential gaps • Support the retention and motivation of employees, enhance company reputation • Future-proofing

6. Aim Design a tool for gender pay auditing Adaptable for other grounds of discrimination Comprehensive yet straightforward Cost effective Consider processes outside of pay and benefits

7. The audit tool Series of checklists and explanations • Defining what is in scope • Data collection and analysis • Pay benchmarking process • Effects of appointments, promotions, performance management • Conclusions of analysis and actions

8. 1. Scope of an audit Workforce review and project plan Job category under review Number of employees and gender breakdown Ability to differentiate skill levels Breadth of responsibilities Period under review

9. 2. Data collection and validation Sources of information Structure for reviewing data Up to-date list of employees - profile, job title, current pay, capturing benefits Confirming consistency and accuracy of information Data protection- processing of personal data

10. 3. Analysis of data Examine pay rates and value of variable pay for both genders Are benefits the same, same value Do differences point to specific issues? • eg. length of service, department, reporting line, size of team, start date, protective leave, atypical working pattern

12. 4. Establishing pay rates How are pay rates determined? Use of job evaluation techniques Factors included in evaluation and categorisation of jobs Consistency of role profiling External benchmarks and their reliability

13. 5. Recruitment Internal or external candidates Competency profiles for each position Gender breakdown of applicants and appointments Selection process and training of selectors Pay rates on appointment

14. 6. Assignments and promotions Development opportunities and project assignments Promotion through competition, advertisement, appointment Demands - relocation, hours of work etc. Opportunities for flexible or atypical working Access to training Protective leave

15. 7. Performance management Performance management process? Consistent across roles, genders Quantifiable targets or wider factors Distribution of ratings rs What is the effect on pay and promotion? Equal access to bonus

16. 8. Audit conclusions What variation exists? Sources? Is the data reliable and accurate? What conclusions can be reached? What processes need to be improved? Specific situations to be addressed? Further evaluation required?

17. 9. Review and next steps Review of the audit process • Improvements in data collection • Training required for future review Next steps • Actions to be taken • Additional categories of employees • Extend to other grounds

18. Future proofing Ongoing review New pay structures Valued contribution Flexible working Values, awareness, training Compliance risks Senior management, role models Culture