The UK Equality Act 2010 states that men and women in the same employment are entitled to equal pay for like work, work rated as equivalent, and work of equal value. This applies to all the protected characteristics.
If you do not compensate your employees equally, you face a potential equal pay risk.
How It Works
At 3R Strategy, we carry out a deep, objective analysis to ensure your rates of pay meet the legal requirements of the Equality Act 2010.
Our comprehensive equal pay audit follows 5 steps:
1. Setting the scope
We will determine which elements of pay will be included in the analysis and communicate the process to you.
2. Determining where men and women are doing equal work
There are three types of equal work:
- Like work – colleagues with the same or ‘broadly similar’ roles involving comparable tasks, knowledge and skills.
- Work rated as equivalent – jobs within the same grade/level as defined by a job evaluation framework.
- Work of equal value – deemed equal in terms of the demands of the role including skills, training and responsibilities.
We will use each of these definitions to determine where equal work is being carried out by men and women within your organisation.
3. Analysing the data
Next, our team of experts compare pay information to identify any pay gaps. We do this by analysing categories within your business such as:
- Job level
- Function or business area
- Performance ratings
4. Understanding the causes of unequal pay
We agree on what constitutes an equal pay risk. For example, a pay difference of more than 5%.
5. Develop an action plan
The final step of our equal pay audit is deciding how to address any pay gaps. The plan will include:
- Guidance on how to investigate equal pay risks
- Financial implications of making changes within your organisation
Read our whitepaper on how to carry out an equal pay audit or get in touch to discuss areas of concern and how to avoid equal pay claims.
It is important to communicate as much as possible to your employees. This can help develop trust and a sense of purpose that leads to more engaged colleagues.
We offer different reward communications packages to suit your needs and help communicate clearly and honestly to employees.