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Irish Examiner
5 days ago
- Business
- Irish Examiner
Thousands of companies must publish gender pay gap in their organisations
The landscape of gender pay gap reporting in Ireland undergoes a significant transformation, with new obligations on companies beginning this week. Larger organisations in Ireland have been reporting their gender pay gaps (GPG) since 2022. Thousands of additional organisations - those with 50 or more employees - are now required to publish their GPG data for the first time. With the EU Pay Transparency Directive due to be transposed into Irish Law in June 2026, gender pay gap reporting is the first step in supporting organisations on the journey to pay parity and equitable pay practice. For Irish businesses, leveraging gender pay gap reporting can be a powerful opportunity to drive long-term organisational success. Strategic thinking can support employee retention when we need to optimise the current workforce to drive performance, and to promote a strong employer brand to attract the talent to meet strategic workforce planning needs. The Imperative of Getting it Right For the newly in-scope organisations, the initial focus will naturally be on ensuring accurate data collection and calculation. This can be complex, involving meticulous attention to definitions of "pay" and "hours worked," and careful categorisation of employees across pay quartiles. The pitfalls of getting it wrong are significant: Reputational Damage: In today's transparent world, a poorly presented or inaccurate report can severely damage your employer brand. Publicly available data means scrutiny from current and prospective employees, clients/customers, and even investors. A perception of pay inequality can quickly erode trust and make it harder to attract top talent. Talented individuals, particularly women, may look to organisations that demonstrate a genuine commitment to equity. Internal Discontent: Employees are increasingly aware of pay transparency. If your report highlights significant gaps without a clear, credible explanation and actionable plan, it can lead to demotivation, decreased morale, and increased staff turnover. There is a heightened risk of increased internal complaints around pay and bonus comparisons, how salary bands are graded, why colleagues in similar roles are paid more/less and referrals for equal pay and discrimination claims. Legal Scrutiny: While direct financial penalties for non-compliance are not yet in place in Ireland, the Workplace Relations Commission (WRC), the Circuit Court and the High Court can order an employer to take specific action to comply with the legislation. Irish data suggests average GPG was 12.6% in 2022 reducing to 11.2% in 2023. With the upcoming EU Pay Transparency Directive, organisations with an unexplained GPG of greater than 5% will have to engage in joint pay assessments where employers must justify the detailed rationale of their pay structures. Leveraging Strategic Opportunities The process of gender pay gap reporting forces organisations to scrutinise their talent management strategies, fostering genuine strategic thinking. Why are women concentrated in lower-paid roles? Are there sufficient pathways for career progression for female employees? Are unconscious biases at play in your recruitment or promotion processes? Are men taking family related leave? These are critical questions that, when addressed, can lead to fundamental improvements in your talent management strategies. Proactively identifying and addressing gender pay gaps demonstrate a strong employer brand with a tangible commitment to equality. This resonates deeply with employees, who are increasingly valuing workplaces that align with their personal values. When employees feel equitably compensated, they are more engaged, more productive, and more likely to stay with your organisation. This reduces recruitment costs and preserves invaluable institutional knowledge. This is significant in the context of Adare's HR Barometer survey which reported anticipated turnover in 2025 at 12.2% and an average cost of €10,125 per employee. In a competitive market for talent, being known as an organisation that champions equality and fairness is a powerful differentiator. It makes you more attractive to a diverse pool of candidates leading to a more innovative and representative workforce, crucial for navigating complex business challenges and fostering growth. Furthermore, for organisations engaging in tenders or seeking investment, a strong GPG report can be a compelling testament to your commitment to ESG (Environmental, Social, and Governance) principles. Looking Ahead: From Snapshot to Solution The June snapshot is just that - a snapshot. The real work begins after the numbers are published. Organisations must not only explain their gaps but also articulate clear, measurable actions they intend to take to reduce them. This might involve reviewing policies, enhancing leadership development programmes for women, supporting women to actively engage in the workforce during menopause, implementing flexible working solutions, or tackling unconscious bias through comprehensive training. Gender pay gap reporting is not just a compliance requirement; it is a strategic opportunity for organisations to enhance their talent management strategies, build a strong employer brand, improve employee engagement and retention, foster a diverse and inclusive workplace, and prepare for future regulations. By embracing transparency and taking proactive steps to address the gender pay gap, organisations can unlock significant benefits and drive long-term success. The time to act is now.
Irish Independent
15-05-2025
- Business
- Irish Independent
One in five employees say they've misused annual leave policies amid growing job dissatisfaction
Payroll and HR service SD Worx Ireland surveyed 1,000 employees in Ireland to find that while 21pc of employees admitted to misusing the policies themselves, 40pc said their teams at work were faced with staff shortages due to growing absenteeism. 'This suggests that employees are not owning up to it, or their colleagues are overly suspicious,' the report said. 'It exposes some common grievances among employees in Ireland and found that almost half feel they are underpaid for the work that they do.' The survey highlights that employees feel overworked with nearly half saying they face staff shortages and are struggling to keep up with their current workload. People were not hopeful about work conditions improving – with around 48pc of the employees saying they expect their team to face worsening talent shortages over the coming years, very few of them felt like the skill gaps would be easy to fill. This research highlights a growing sense of dissatisfaction among Ireland's workforce However, most employees said they coped with the pressure by staying strict with their own workloads and schedules – 44pc said they were 'solely focusing on what is necessary and not working overtime'. The survey also found that employees found ways to stay motivated – 63pc said they were passionate about their work despite their work environments. Eimear Byrne, country leader at SD Worx Ireland, said Irish workers were also dissatisfied with the leadership at their workplaces. 'This research highlights a growing sense of dissatisfaction among Ireland's workforce. With 39pc of respondents saying their manager struggles with effective leadership, it's clear that many employees feel they're lacking valuable guidance and mentorship,' said Ms Byrne. In the face of the rising pressures and lack of mentorship, the survey found that 44pc of the workers surveyed were currently looking for a new job. More than half of them find it difficult in the current labour market. 'We are now seeing a knock-on effect with more people actively seeking to change jobs and widespread concerns about staff shortages, as well as underpayment,' Ms Byrne said. ADVERTISEMENT Ireland is at full employment and organisations are facing a critical need to re-evaluate how they engage and support employees 'This comes as the EU Pay Transparency Directive is due to be transposed into Irish law in June 2026 – if done right, this could be an opportunity to alleviate employees' pay concerns and help to build trust.' The EU Pay Transparency Directive which came into effect in June 2023 will require employers to disclose salary ranges on job advertisements. Ms Byrne added that organisations would need to find new ways to support their workforce in light of rising dissatisfaction. 'Ireland is at full employment and organisations are facing a critical need to re-evaluate how they engage and support employees,' she said. 'The changing economic landscape is making businesses more conservative and they are under increased pressure to keep operations running smoothly, while trying to retain talent. With skills shortages and rising absenteeism in the mix, it's becoming harder to strike that balance. 'Now is the time to invest in people strategies and provide employees with the support, development opportunities, and workplace culture they need to thrive.'
