Diversity, equality & inclusion

To be prepared for this new legislation, eligible employers need to start analysing their data and planning accordingly. Aoife Newton tells us what needs to be done before 2022. Gender pay gap reporting legislation was recently signed into law in the Gender Pay Gap Information Act 2021 (the Act). However, when and how the information will need to be reported is as yet unknown. In this regard, the regulations to give effect to the Act are eagerly awaited. The Act amends the Employment Equality Act 1998 by requiring regulations to be made by the Minister for Children, Equality, Disability, Integration and Youth as soon as reasonably practicable after the commencement of the legislation. The regulations will place reporting and publication obligations on private and public sector employers regarding their gender pay gap. They will contain much of the detail on the practicalities of the legislation. Which employers are affected? The legislation will not apply to all employers. Only employers that satisfy certain employee thresholds will be in the scope of the legislation. Where an applicable employer reports that a gender pay gap exists, the employer will be required to explain why the gender pay gap exists and detail the measures being implemented by the employer to reduce or eliminate the gap. Both private and public employers will be affected by the mandatory reporting obligations, but they will initially only apply to employers with 250 or more employees for up to two years after the commencement of the regulations. The scope of the mandatory reporting obligations will widen further to include employers with 150 or more employees on or after the second anniversary of the regulations and those with 50 or more employees on or after the third anniversary. Employers with less than 50 employees will not be required to report on their gender pay gap. What is required? Applicable employers will be required to report on the difference in remuneration between male and female employees, as set out below: the difference between both the mean and median hourly pay of male and female employees; the difference between both the mean and median bonus pay of male and female employees; the difference between both the mean and median hourly pay of part-time male and female employees; and the percentage of male and female employees who received bonuses and benefits-in-kind. Employers will also be required to simultaneously publish the reasons for differences in pay in the context of the above and the measures being taken or proposed to eliminate or reduce such disparities. In addition to the mandatory reporting requirements, other requirements may be contained in the regulations once published, including: the class of employer, employee and pay to which the regulations apply; how the number of employees and remuneration is to be calculated; and the form, manner and frequency with which information is to be published. The information will not be required to be published more than once per year. Enforcement An aggrieved employee can make a complaint to the Workplace Relations Commission (WRC) if an employer is not reporting on its gender pay gap. On receipt of a complaint, the WRC will investigate the complaint’s merits and may order the employer to take a specified course of action to ensure compliance with its reporting obligations. However, the WRC does not have the jurisdiction to order the employer to pay compensation to an employee or impose a fine on an employer. The Act provides for the Irish Human Rights and Equality Commission (IHREC) to apply to the Circuit Court or High Court seeking an order forcing an employer to comply with its reporting obligations. Employers that do not comply with such a court order may be held in contempt of court. The Act also provides that the IHREC, on receipt of a request from the Minister, can carry out (or invite a particular undertaking, group of undertakings, or the undertakings making up a particular industry or sector to carry out) an equality review or create and action an equality action plan. What to do now Minister Roderic O’Gorman has confirmed his intention to have the regulations in force by the end of 2021. He has also indicated that employers may be required to submit their information through a central website. Given that the regulations will likely be in force by the end of 2021, the legislation will probably apply to applicable employers from some date in 2022. Employers can prepare by collating and analysing their remuneration data to assess the extent to which gender pay gaps exist. This will help plan how to remove or reduce any such gaps before they are publicly obliged to report, the reasons for them, and what they are going to do about them. Aoife Newton is the Head of the Corporate Immigration and Employment Law team at KPMG.

On Thursday 24 June, the Institute marked Pride with a dedicated event for the third consecutive year, “LGBTQ+ in the workplace: celebrating inclusion in 2021”. The event was the result of collaboration between by the Institute’s Diversity & Inclusion Committee, the Young Professionals Committee and CA Support. Members in Ireland and around the world were privileged to hear from three outstanding advocates for greater inclusion in the workplace, each of whom shared personal experiences and the unique challenges that they have encountered in their advocacy.  The first speaker was Éirénne Carroll, Chief Executive of TENI (Transgender Equality Network Ireland). Éirénne spoke of her experience of coming out at work in 2016 in North Carolina. Her decision coincided with the signing of a bill blocking cities in the state from allowing transgender individuals to use public bathrooms for the sex they identify as. While relieved to find employer support for her decision to share her full self at work, Éirénne was challenged by the lack of organisational policies to support her, something she had to research and lead on the development of herself. TENI was founded in 2006 as a Dublin-based support group for transgender adults. It now has ten regional groups and eight youth and family support groups around the country and offers support, education and advocacy. Laila El-Metoui, Equity & Belonging Consultant, and Stonewall Lesbian Role Model 2020 reminded us of the importance of self-confidence and assertiveness to achieve equality. She made the important point that an interview is the candidate’s opportunity to evaluate an employer. If they are not inclusive, they will not attract or retain staff. She reminded attendees that members of the LGBTQ+ community have so much to offer workplaces: diversity of thought, innovation and crucially, access to members of the community via staff. It is in an organisation’s own interests to be inclusive. Peter Keenan-Gavaghan’s contribution centred on his experience in his career with Barclay’s Bank in London. Their staff network: Spectrum, has been very supportive of him in practical ways such as offering equal parental leave. Such measures are conducive to retaining the best talent. Peter also noted that most members of Spectrum are allies, rather than LGBTQ+ staff – which is very much a testament to the inclusive culture permeating the organisation. Indeed, this necessity for supportive allies at work was a common theme from all the speakers. The support of many allies allows for policies to be put in place that embed equality, and for open channels of communication to be established, providing support to colleagues in whatever form they might need it. There was also the reminder again that inclusion is not a one-month issue for Pride – it must remain rooted in our workplaces for everyone’s benefit every day of the year. This was emphasised by Young Professionals Chair, Daniel Turley, who moderated our Pride event and who welcomed the foundation of the Institute’s LGBTQ+ Committee, which will drive the Institute’s work towards the promotion of greater inclusion. We are very grateful to all who worked together to make this event a success, and to PeopleSource who supported it. A recording of the event is available to watch here.

For organisations to thrive in a modern Irish society, serious work needs to be done on fostering diversity and inclusion in business organisations. Sandra Healy explains an evidence-based approach. Today people want to work with organisations where they feel respected and valued, no matter how diverse they are. In Ireland, we have the youngest population in the EU, with one in eight people from a migrant background. This young, diverse population expects organisations to have supportive, inclusive cultures that reflect the society we live in. Additionally, all over the world, regulators, shareholders and investors are demanding fairness, transparency and a customer-led approach to doing business. While many employers have positive intentions regarding equality, diversity, and inclusion, it can be challenging to know where to begin, what to prioritise, and how to make progress in building an inclusive culture. Branding vs supporting Some organisations get behind diversity and inclusion (D&I) initiatives for employee resource groups (ERGs) through external sponsorship or brand campaigns. Externally, it demonstrates to customers, shareholders, and potential talent that your organisation values diversity. For D&I initiatives, it can be a powerful way to amplify reach. However, the external investment must be accompanied by a commitment to fostering inclusion and diversity within your organisation. Evidence for change Building an inclusive culture takes time, resources, focus, and commitment. To make progress, it is important to understand what challenges exist and where. An evidence-based approach takes the guesswork out of culture and ensures that actions are meaningful, impactful, and make a difference. A very relevant and important example of this is gender pay gap reporting, which will commence in Ireland in 2022. A lack of representation at senior level will be an issue and a reputational risk for those that are not prepared when the time comes. Organisations need to plan now by examining their data as it relates to gender, position, and pay scale and understanding the barriers that exist for female progression. In addition to external reputation, employers must consider how the pay gap information will land internally and whether there is a potential risk in terms of current female talent exiting the business when the time comes. Organisations have the information they need to take action now and make a commitment to improving gender representation. Furthermore, those that get ahead will be able to control the external and internal narrative when the time comes – thus avoiding unnecessary fallout.   Going beyond gender As examined above, the gender pay gap is just one example of where and how organisations can use data and evidence to deliver meaningful change. However, organisations must also consider the levels of diverse representation beyond gender at all levels. If organisations are willing to commit and focus time and resources, there is much that can be done to enhance and improve wider diversity across areas such as race, age, neurodiversity, sexual orientation and disability – to name just a few – building more equitable and inclusive cultures for all. Retaining diverse talent requires an inclusive, supportive culture where people can be who they are. Research shows that more diverse and inclusive organisations deliver better customer outcomes, foster more innovation, and have better reputations. Ireland is a young multi-cultural society, and we have a great opportunity to get it right. Organisations are competing globally for talent and if employers are not proactive in building inclusive workplaces, they will lose out to those that do. Sandra Healy is the CEO of inclusio and Founder of the DCU Centre of Excellence for Diversity and Inclusion. inclusio puts science into culture change so organisations can build workplaces where people want to work by levelling the playing field for employees.