I call upon Parliament to abolish the Gender Pay Gap by requiring employers to report their Gender Swap Number instead. When presented alongside an employer’s Gender Pay Fingerprint, the Gender Swap Number tells everyone how much work the employer needs to do to eliminate their gender pay gap and allows for a fairer comparison between employers.
The UK government has promised to give their views and proposals for introducing Ethnicity Pay Gap (EPG) reporting by the end of 2020. A year ago, I pointed out statistical, data & ethical issues with EPG and listed 5 possible ways EPG could be introduced but I have not yet focused on what employers should be reporting. I have now concluded that Ethnicity Pay Fingerprints are vastly superior to Ethnicity Pay Gaps and my new recommendation is that all employers with 500 or more employees should be required to report their Ethnicity Pay Fingerprint (EPF) instead of their Ethnicity Pay Gap. If EPF is widely adopted and found to be beneficial then I would recommend that reporting of other protected characteristics such as gender & disability should be reported using Pay Fingerprints instead of Pay Gaps.
On 5th February 2020, Baroness Prosser laid a bill in the House of Lords which calls for the introduction of ethnicity pay gap reporting in addition to a number of other initiatives. Last year I explained why ethnicity pay gap reporting cannot follow the same process as gender pay gap reporting so now is the time to explore how ethnicity pay gap reporting could be carried out.
After two years of mandatory gender pay gap reporting, there is increasing pressure to bring in pay gap reporting for other protected characteristics. At the moment, ethnicity is receiving the greatest attention and a number of politicians are calling for the introduction of mandatory ethnicity pay gap reporting.
In this post, I will explain why I am opposed to an ethnicity pay gap reporting process which simply replicates the gender pay gap reporting process. In a future post, I will explore what an ethnicity pay gap reporting process should look like if parliament decides it wants to make this law.
So you’ve measured your gender pay gap (correctly I hope!) but you don’t know what to do next?
You are not alone, many employers are still getting their heads around how to interpret their pay gaps and are struggling to work out what it means for them. One outcome is that many consultants are out there waiting to advise you and among them are statisticians like me. But what exactly is it that statisticians bring to the party compared to other consultants? One answer is that statisticians use DMAIC to help organisations improve the quality of their products, services and processes.