EMPLOYERS face “significant reputational and brand damage” if they fail to close their gender pay gap, a new report warns today.
The Ibec document advises employers that the Irish Human Rights and Equality Commission can seek a court order compelling them to file a pay gap report if they fail to do so next month.
His guide was issued as, for the first time, employers will be required to report the difference between men’s and women’s wages under the new legislation.
Organizations with more than 250 employees are required to report this year.
Employers chose a “snapshot date” in June to capture their pay gap, and the deadline for reporting is the same day of the month in December.
Ireland’s gender pay gap is estimated at 11.3 per cent, according to the latest Eurostat figures, compared to an EU average of 13 per cent.
The gender pay gap is the difference in average hourly wages between men and women in a workforce, regardless of their role.
Ibec’s Navigating the Gender Pay Gap report advises employers that failure to comply with a court order to produce a report would constitute contempt of court.
It says employees can also complain directly to the Workplace Relations Commission.
According to the report, there are no mechanisms for fines to be imposed on an employer who fails to implement measures to eliminate the pay gap.
“However, there is likely to be significant reputational and branding damage that may indirectly lead to financial implications,” it says.
The report urges employers to consider issues including whether there are differences in pay packages between male and female employees in comparable roles. It advises them to base pay for jobs on positions rather than a person’s salary history.
There are examples of “linguistic gender coding” that could be used in job advertisements.
The report says “aggressive, boastful, challenging, dominating, ambitious, and superior” are “male-coded words.”
Listed “female-coded words” include “collaborative, committed, trusting, enthusiastic, inclusive, and loyal.”
According to the report, failure to address the gender imbalance in the country’s workforce can put families at risk of poverty and stifle the country’s economic growth.
“Ireland is the latest country in Europe and the US to introduce mandatory gender pay gap reporting, which aims to address gender gaps in the workplace and barriers to full socio-economic equality for women and girls,” it said.
The report finds that, despite making up more than half of the world’s population, women are not realizing their potential in terms of economic activity, growth and competitiveness, “with serious macroeconomic consequences”.
“In Europe, gender imbalance in the labor market is responsible for an estimated 10 per cent loss in gross domestic product per capita, while in the UK McKinsey calculated that increasing gender parity in labor force participation, hours worked and sector mix could add £150bn to employment. £ gross domestic product by 2025.
“If this situation is not actively addressed, it will exacerbate problems of gender balance in the economy, deprive companies of the financial, innovative and problem-solving benefits of diverse teams, drain government coffers in the form of benefit payments and lost tax revenues, and expose and lead families to the risk of poverty , stifling Ireland’s long-term economic competitiveness and growth.”
It states that effectively tackling the gender pay gap will help address the gender imbalance.
The report finds that the gender pay gap does not indicate discrimination or prejudice, let alone the lack of equal pay for work of equal value.
A gap in gender representation is said to be reported.
The report says it will measure whether women are equally represented in an organization.
“For example, if women hold more of the lower-paying jobs in the organization than men, the gender pay gap is typically larger,” it says.
He notes that the Minister for Children and Equality, Roderic O’Gorman, has said that women face far greater barriers to entering the labor market than men.
He said persistent gender stereotypes, a “glass ceiling” preventing women from reaching managerial positions and the fact that women take on a much larger share of family care responsibilities and unpaid domestic work all contribute to a significant gender pay gap contribute.
https://www.independent.ie/irish-news/news/employers-warned-of-significant-reputation-and-brand-damage-if-they-fail-to-eliminate-gender-pay-gaps-42146598.html Employers warned of “significant” reputational and brand damage if they fail to close the gender pay gap