Data Flaws Could Mean 15% Of Gender Pay Gap Reports Are 'incorrect'

Gender pay gap data could be flawed

Gender pay gap data could be flawed

Gender pay gap data supplied before the most recent April deadline could be inaccurate with over 1,500 companies "flagged as suspicious", according to a report in The Times.

Research seen by the publication, carried out by the Royal Statistical Society found that 572 companies made mistakes with their data, while a further 1,000 had "suspicious" figures. Overall, it said 15% of the 10,683 submissions received for 2018 could be incorrect.

As a result, the Government's move to make companies more accountable and transparent regarding the differences in pay for men and women could be undermined. 

The findings said some businesses have calculated their median average pay gap incorrectly, while others formed their income quartiles the wrong way round. In addition, the same data was published for two consecutive years.

Diversity blog: Gender pay gap reporting still unclear as companies struggled to meet deadline

Legislation introduced in April 2017 requires UK companies with 250 or more employees to publish their GPG on an annual basis in a move to tackle workplace discrimination.

However, Investment Week reported in early April the number of firms in the UK reporting their Gender Pay Gap (GPG) figures by the 4 April deadline had fallen by more than a thousand, amid claims firms have restructured businesses or transferred staff to avoid being obliged to report, or have ditched reporting altogether under the perception they will not face repercussions.

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