The government is finally taking action to even out the playing field where the gender pay gap is concerned.  The recently issued consultation paper, ‘Closing the gender pay gap’ outlines plans to implement section 78 of the Equality Act 2010, which has been dormant for five years.

The new arrangements will effectively require any UK employers with 250 employees or more to report on their gender pay gap on a regular basis.  The paper outlines the request for a view into exactly how, when and where the reporting should occur.

Of course with any change come questions.  Some HR experts are already asking whether an employer should report on the overall pay gap figure, or whether that should be broken down by full and part-timers.  Human resources experts claim that in order to compare apples with apples, job grade and type should really be considered.  There are also questions about what will happen if a company doesn’t have a pay and grading system.

The suggestion from many HR professionals is that the implementation of the reporting should really be completed in phases.  For example, the recommendation is that larger employers should be given earlier compliance dates than smaller employers.

Once reporting commences, government officials assume that a gender pay gap will be present.  If this is the case, the real issue may be the gender talent gap.  It wouldn’t be fair to pay a woman with less experience or less certifications the same as a man who has more of both.

The Women’s Business Council issued a report this year identifying reasons for the current pay gap.  While it is noted by the Women’s Business Council and the government that the causes are “numerous and varied” one of the main culprits stems from women’s career decisions and the advice they receive.

The aim for the new reporting system, according to government officials, is really to shine light on each organisation’s gap.  There will not be any action or request for action unless there is meaningful data reported.