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All companies with 250+ employees required to publicise their pay gap from 2017
You probably don’t need us to tell you about the benefits or diversity; not just in the boardroom but at all levels across the organisation. Diversity brings new perspectives, strengthens boardrooms and enables organisations to better represent their client base.
But amidst all the sterling work which has been done over the last few years to boost diversity the elephant in the room remains the perception and reality of unequal pay for equal tasks. In fact, according to the ONS the pay gap for full-time workers in April 2015 was 9.4%; down just 0.2% on the previous year.
In the past we’ve highlighted the way in which a number of organisations have taken steps to lead change by publicising their pay gaps. Now, all organisations employing more than 250 staff will have to do the same.
Plans announced today by Women and Equalities Minister Nicky Morgan will require companies and voluntary organisations to start calculating their pay gap from April 2017 and to publicise the results a year later. Commenting on the announcement the Chief Executive of the Chartered Management Institute, Ann Francke, said “Closing the pay gap will open the talent pipeline, increase management quality and boost productivity.”