home Newsletter   December 2021 Newsletter   Employers urged to tackle Gender Pay Gap - HR Barometer Report findings

Employers urged to tackle Gender Pay Gap - HR Barometer Report findings

Employers urged to tackle Gender Pay Gap - HR Barometer Report findings

Adare Human Resource Management has recently published its latest HR Barometer Report, its second this year, highlighting some interesting statistics and trends in the employment landscape.

One such finding is the fact that just one in ten (11%) Irish Organisations are monitoring the gender pay gap. This is despite both the Dáil and Seanad passing the Gender Pay Gap Information Act 2021. Of those not recording the disparity in pay levels between male and female employees one in four companies don’t know how they compare to the national average of 14.4%, while half believe the gender pay gap in their organisation is higher or at least equal.

It is in the best interest of Employers, as well as affected staff, that Organisations start recording and analysing their gender pay gap information now, and demonstrate a genuine commitment to abolish any disparities. Continued inaction on the part of Employers could prove costly, particularly as talent acquisition, along with retention, remain top priorities (67% and 65%) heading into 2022. By not addressing an above average gender pay gap, it could have serious and long-term repercussions in terms of staff turnover as well as recruitment considering the potential impact on reputation.

The HR Barometer Report also highlights the slow progress being made on addressing diversity and inclusion in many workplaces. Employers’ obligations under the Employment Equality Act, 1998 – 2015, are very clear. Organisations should ensure that they have the appropriate diversity and inclusion policies and training in place to protect themselves from any issues arising. Finding oneself in front of the Workplace Relations Commission (WRC) without such a policy could further aggravate matters for employers, as well as negatively impact the Organisation’s reputation given WRC hearings are now held in public.

Talent War

The HR Barometer Report confirms that the talent war looks set to continue well into 2022. Three quarters of Organisations surveyed are increasing salaries this year, up from 41% earlier in the March 2021 HR Barometer Report. Already half are planning increases next year also. Meanwhile employee turnover in 2022 is expected to rise marginally to double digits next year, compared with an anticipated 7.5% for 2021.

Hybrid Working – falling out of favour?

As the Government advises businesses to move to remote working again, the HR Barometer Report also reveals that employer enthusiasm for hybrid working has decreased since the phased reopening of workplaces began in September. Only one third of employers (32%) excluding retail and wholesale sectors believe hybrid working will benefit their organisation. This compares to over three quarters (76.8%) in their March HR Barometer Report.

We know that hybrid working isn’t a ‘one size fits all’ model as it suits certain roles and sectors more than others. But the fall in support from employers is surprising, especially in the professional services sector where over two thirds of employers expressed reservations.

With remote and hybrid working receiving the full support of the Government through the publication of the National Remote Working Strategy and Code of Practice on Right to Disconnect, flexible working practices are here to stay for Ireland’s Employers. Many embraced it enthusiastically after the lockdown as the ideal way to get back to the office. However, as hybrid models are put into practice it’s not surprising that there are some challenges.

The current move back to remote working provides a great opportunity for Employers to review what has happened in their workplaces over the past few months and with clear communication with their Employees to adapt their model so it works for all.

As well as these findings, the HR Barometer Report provides a comprehensive snapshot of current challenges and opportunities. The full report is available on Linea, Adare Human Resource Management’s comprehensive online resource for HR Practitioners. If you would like access to Linea, please contact the team.