Employers failing to act on equal pay

A study by IRS Employment Review found that although 37 per cent of firms expected equal pay to be a priority over the coming year, just a quarter of bosses have already conducted, or are currently conducting, an equal pay audit.

A further one in four businesses had no plans to review their pay structures to ensure male and female employees were being rewarded equally.

The continued lack of equal pay audits is despite the introduction of questionnaires last year which allow employees to gain details on colleague’s pay to ensure they are being paid fairly.

Small firms have been warned that they risk being taken to court by employees who can prove that pay structures were discriminatory.

Despite the reluctance to act on equal pay, the majority of firms said they planned to introduce pay rises over the next 12 months, with many employers keen to offer greater rewards and career opportunities.

However, just 43 per cent of businesses said that they operated a pension scheme, despite the government considering making pension contributions from employers compulsory.

Sheila Atwood, IRS Pay and Benefits editor, said that the findings on equal pay make worrying reading.

“Pay structures that are viewed by the workforce as unfair will undermine morale and working relationships. Not only is it good practice but in a tight labour market, fair pay practices will have a positive effect on recruitment and retention.

“Employers must provide the right opportunities for staff to progress through both salary and grading structures.

“But despite positive signs of growth from the economy, business recovery is a slow process,” she said.