Gender Pay Gap Reporting Ireland 2022
The Irish Government enacted legislation which will require Irish organisations to report the details of their Gender Pay Gap. The Gender Pay Gap Information Act 2021 was enacted and signed into law by the President on July 13th 2021. The exact statutory requirements are now finalised. The new regulations require employers to publish information relating to the remuneration of their employees and highlight any differences in remuneration based only on their gender.
Specific details on what must be reported and the method of calculations have now been published in early June 2022.
Some key points from the regulations will include:
- Identifying the Relevant Employees
- Calculating Ordinary Pay for each Relevant Employee for the 12-month period prior to the snapshot date
- Calculating Bonus Pay for each Relevant Employee for the 12-month period prior to the snapshot date
- Calculating the total hours worked by each Relevant Employee during the 12-month period prior to the snapshot date
- Calculating the hourly remuneration for each Relevant Employee based on ordinary pay, bonus pay and total hours worked. (Points 2, 3,& 4 from above).
- Calculating number of Relevant Employees in receipt of Benefit in Kind during the 12-month period prior to the snapshot date
- Reporting mean and median gender pay gap figures separately for Part-Time and temporary contract employees
What is the Gender Pay Gap?
Gender Pay Gap Definition
The Gender Pay Gap is defined as being the difference in the average hourly wage of men and women across a workforce. It compares across the organisation, taking into consideration the pay of all working men and women, not just those in similar roles, with similar qualifications and experience, or with a similar working pattern.
What is important to note is that Gender Pay Gap does not highlight discrepancies or discrimination or an absence of equal pay for equal value work – it reports a gender representation gap. If men hold more of the higher-paid jobs in an organisation than women, the Gender Pay Gap is usually wider and vice versa.
This is a matter of identifying whether an organisation has a disparity in the average wage across their male and female employees.
What is the Gender Pay Gap in Ireland?
Like many other countries, Ireland has recently announced mandatory Gender Pay Gap reporting for organisations, in an attempt to combat gender inequality in the workplace. These regulations will be a starting point for many organisations to delve deeper into their workforce.
While Gender Pay Gap reporting alone will not be the “be-all and end-all” when it comes to solving the issue of gender balance in Ireland, many believe that these regulations and clear gender pay reporting will enable organisations to analyse any issues holding their organisations back giving further insight into their workforce, and ultimately making decisions to combat these issues.
An end goal with this movement would be for all organisations to introduce initiatives in order to create parity across all genders in the workplace and thus promote equality.
Causes of Gender Pay Gap
The issue of the Gender Pay Gap cannot be caused by one reason only; it is a vast problem with multiple nuanced reasons. Society itself has influenced the issue, and many correlations can be made between potential causes and how society sees, or has seen, gender roles. With that in mind let’s look at just some of the causes of the Gender Pay Gap.
Gender Focused Industry
Within many industries, there is a societal bias on gender. Males are hired predominantly in trades such as building, plumbing and other manual labour focused careers, whereas females are usually featured more in nurturing roles such as nursing or teaching. Within these industries, there will be a natural Gender Pay Gap due to the much higher number of one gender employed in that industry.
Combatting this type of situation is not as straightforward as hiring more of the opposite gender; this can only really be combatted by altering society’s views on what jobs are suitable for males and females, and promoting all job types to younger generations of both genders.
Family care and household responsibilities were traditionally seen as a job for females, as historically women were not allowed to be in employment. As time has passed, females are now encouraged to enter the workforce like their male counterparts. However, it can be argued that women continue to be the main workforce in the home, with many giving up work or taking extended leave to care for their families.
This often hinders career progression and can be a contributing factor in women not progressing to higher-paid management positions. Although this is not to be said of all females in the workplace it is certainly a contributing factor.
Controlled Pay Gap
In some cases, the Gender Pay Gap can be caused by discrimination and bias. In this case, organisations may pay specific employees at a lower rate solely based on their person attributes. It can be intentional or unintentional and can be found in many industries. This controlled pay gap can easily be remedied by a structured recruitment process, clear salary guides and removal of bias from the hiring team.
Gender Pay Gap Reporting 2022
Gender Pay Gap Information Act 2021
The Gender Pay Gap Information Act 2021 was enacted and signed into law by the President on July 13th, 2021. The Act will give rise to new regulations requiring employers to publish information relating to the remuneration of their employees and highlighting any differences in remuneration based on gender.
The regulations will apply to all public and private sector organisations in Ireland with 250 or more employees, extending to organisations with 150 or more employees within 2 years, and all organisations with 50 or more employees 1 year later.
What Information will we need to return?
Organisations will be required to report and publish the pay gap between male and female employees using a variety of metrics, including:
- (b) the difference between the median hourly remuneration of employees of the male gender and that of employees of the female gender expressed as a percentage of the median hourly remuneration of employees of the male gender;
- (c) the difference between the mean bonus remuneration of employees of the male gender and that of employees of the female gender expressed as a percentage of the mean bonus remuneration of employees of the male gender;
- (d) the difference between the median bonus remuneration of employees of the male gender and that of employees of the female gender expressed as a percentage of the median bonus remuneration of employees of the male gender;
- (e) the difference between the mean hourly remuneration of part-time employees of the male gender and that of part-time employees of the female gender expressed as a percentage of the mean hourly remuneration of part-time employees of the male gender;
- (f) the difference between the median hourly remuneration of part-time employees of the male gender and that of part-time employees of the female gender expressed as a percentage of the median hourly remuneration of part-time employees of the male gender;
- (g) the percentage of all employees of the male gender who were paid bonus remuneration and the percentage of all employees of the female gender who were paid such remuneration;
- (h) the percentage of all employees of the male gender who received benefits in kind and the percentage of all employees of the female gender who received such benefits.
- (i) The difference between the mean hourly remuneration of employees of the male gender on temporary contracts and that of employees of the female gender on such contracts expressed as a percentage of the mean hourly remuneration of employees of the male gender;
- (j) The difference between the median hourly remuneration of employees of the male gender on temporary contracts and that of employees of the female gender on such contracts expressed as a percentage of the median hourly remuneration of employees of the male gender;
- (k) the respective percentages of all employees who fall within each of
(i) the lower remuneration quartile pay band,
(ii) the lower middle remuneration quartile pay band,
(iii) the upper middle remuneration quartile pay band, or
When will we need to do this?
Employers are required to choose a snapshot date. The snapshot date must be in June but may be any date in June. Employers will be required to produce their gender pay gap information within 6 months of their snapshot date. The deadline for publication of the employer’s gender pay gap information is 6 months after their chosen snapshot date.
Therefore an employer who chooses 1 June as their snapshot date has a reporting deadline of 1 December.
Where does the information get returned to?
For the 2022 reporting cycle, the information does not have to be submitted to the Minister. The gender pay gap information report must be published on the employer’s website or in some other way, in a manner that is accessible to all its employees and to the public, and for a period of at least three years beginning with the date of publication. Plans are in place to develop an online reporting system for the 2023 reporting cycle.
Gender Pay Gap Reporting
Benefits of reporting
There are many benefits that come with reporting on your Gender Pay Gap or your workforce in general. By getting ahead, you can position your organisation as a leader in terms of workplace transparency. It also allows you to highlight any potential issues before they have gotten out of hand, and it makes strategic decision-making easier using the newly available information.
Some other benefits of Gender Pay Gap reporting include;
- Brand enhancement
- Attracting & retaining top talent
- Increased employee trust
- Maximise strategic thinking and innovation
- Strengthen economy
- Insight into organisational data
Overall, reporting on your organisation’s pay gap can remove the stigma around pay and create transparency within the organisation. Leading by example to adopt new strategies to treat and pay all employees without bias and creating a better workplace while doing so.
Your organisation can go one step forward and look to HR Analytics for a complete look at all their workforce.
Challenges of Gender Pay Gap Reporting
With the new regulations making it mandatory for organisations to report on their workforce, there are certain challenges that come with this. Here are some of the most common challenges.
- Understanding the requirements
With any new legislation, there are bound to be grey areas and unclear information that organisations will need to uncover. Finding out what exactly is expected of organisations is the first step with these new reporting requirements.
- Accessing their data
Organisations may not have their data in a format that is easy to report on, or may not have the tools available to manipulate the data in order to generate the reports needed. As the data is the main element that is needed for reporting, this is key.
- Generating meaningful outputs
Once the data is gathered to meet the legislative returns, organisations may find it difficult to make sense of the data. One element of the legislation will require organisations to create a narrative about their Gender Pay Gap which could be difficult to produce if the data is not easy to analyse. If an organisation cannot make sense of their own data and metrics, it is unlikely they will be able to explain them to others.
- Creating new initiatives
With the Gender Pay Gap return produced, organisations will be expected to turn their attention to developing initiatives to address their Gender Pay Gap. These initiatives and strategies should be devised with the help of their data and some creative thinking.
Can MakoData help us to get ready?
Whilst the deadline for publishing your Gender Pay Gap reporting is not until December 2022, your organisation can start preparing now to ensure you have ample time to review and understand the reported metrics, produce the statement to accompany the key stats and begin working on any initiatives that may be required to address the gender pay gap if one exists.
MakoData has been helping UK customers with their Gender Pay Gap needs for years, and we have a solution that will:
- Allow easy configuration for key reporting inputs e.g. employees to be included/excluded, inclusion of relevant pay codes/elements etc.
- Automated production of the required metrics to meet the legislative return
- Validation tools to allow checking of relevant pay values at an individual employee level where required
- A suite of dashboards and analytics to support the process of managing and impacting the Gender Pay Gap in your organisation:
- Trending key metrics over time to track ongoing performance
- Highlighting areas, groups, categories etc which are contributing most significantly to the Gender Pay Gap in your organisation
- Identify areas of your organisation which are doing best/worst, and understand why they are different
How to get started?
The MakoData solution is based on your existing HR and Pay data, and is built to support all aspects of Gender Pay Gap reporting. We will support you fully with configuration, production of the required outputs, and ongoing changes that may be required based on changes in your organisation or person data. Book a demo here!
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