Wednesday, April 12, 2017

Diversifying Diversity Reporting - LEXOLOGY

by Charles Urguhart
Originally published: April 11, 2017

On 6 April 2017, the Gender Pay Regulations (GPR) finally came into force, requiring companies with over 250 workers to monitor and report on their gender pay gap. Besides gender pay, workplace diversity has been rising up the political agenda recently, with studies indicating that diversity improves the likelihood of better business returns. The latest suggestion by the Government is that all FTSE 100 companies should publish their workforce data broken down by ethnicity and pay band.

Gender diversity remains the primary focus with a drive to increase the number of women in senior positions. Last week, the Business, Energy and Industrial Strategy Committee issued a report making a number of recommendations about corporate governance but also making significant recommendations about the need to improve Boardroom diversity. The Committee suggested that the Government should increase the target previously set in 2011 (that by 2015, FTSE 100 companies were to ensure they had at least 25% female board representation) so that from May 2020, at least half of all new appointments to senior and executive management level positions in the FTSE 350 and all listed companies should be women.