More needs to be done to explain to employers why carrying out equal pay audits makes good business sense, according to the Chartered Institute of Personnel and Development (CIPD).
A new survey from the CIPD found 47 per cent of employers have no plans to carry out an equal pay audit in the near future.
The results of the CIPD’s Reward Management Survey 2005 show that the main reasons for not planning an equal pay audit are:
– The majority of small businesses and those implementing new pay structures (62 per cent) simply presume that their pay systems are non-discriminatory
– Over a quarter (27 per cent) of respondents use an analytical job evaluation scheme
– A number of employers (24 per cent) state that top management do not see the need for an equal pay review.
Dianah Worman, CIPD diversity adviser, said there was still a huge lack of awareness about how equal pay audits can expose underlying bias in the way organisations value female employees.
“When employees don’t feel valued it destroys the way they feel about their employer and damages the trust between employers and workers, which undermines staff commitment, motivation and retention,” she said. “Voluntary equal pay audits therefore make sense, as good employee relations boost performance.”