This is the first of a two-part series on gender pay gap reporting in companies. The focus of this post is on internal communications and how a company might approach the reporting of gender pay data to its employees.

The virtue of proactivity

These days, discussions about gender pay abound in the media and throughout business circles across the globe. Since April 2018, for example, companies in the U.K. with more than 250 employees have legally had to report gender pay data publicly. However, even in markets where accountability to gender pay disparities is driven more by the court of public opinion than by actual legislation, the issue presents an acute communications challenge for companies. What, therefore, should companies adopt as their basic orientation toward gender pay reporting?  

One good starting point is to approach the topic positively, in turn encouraging proactivity. Having a proactive mindset about reporting gender pay data will ensure that companies leave as little as possible to chance. For example, a firm that obscurely reports the data to hide uncomfortable findings will only expose itself to otherwise avoidable criticism; similarly, a company using a narrative to describe the data that attempts to absolve the business or its leadership of responsibility may be received unfavourably.

The best approach for executives, therefore, is to get out in front of the issues by owning the data and holding yourself accountable to the reality inside the organisation. Internally, this will put the company in the best position to facilitate understanding about the issue of gender pay amongst employees and engage in constructive dialogue about ways to reconcile it. Perhaps unsurprisingly, communications professionals can and should be the drivers of this approach. 

Transparency in all things

Transparency can be a tricky concept. Often associated with compliance – “I will make public what I am obliged to make public” – transparency can be a strategic tool for companies to build trust and take the initiative to dig deeper into corporate issues. In other words, being transparent with gender pay data can be a voluntary, as opposed to an obligatory, decision – and a way of exercising leadership on the issue. 

It is natural for businesses to shy away from this approach. Gender pay gaps are an uncomfortable topic that can immediately suggest some form of injustice or unfairness toward the employees affected. But that is precisely why being transparent is a good decision. 

If a company has done nothing wrong – leaders have not created a gap through, say, allowing irrelevant gender stereotypes to persist, making unfounded assumptions about people's capabilities, or expressing arbitrary preferences for one gender over another – they have nothing to hide. In fact, they will have everything to gain by owning the data and initiating internal conversations about why the gap exists and how company policies may need adjusting to reduce or eliminate it. 

On the other hand, if a gap exists due to discriminatory practices, it is still better to face up to it head on. Although it may provoke difficult encounters with employees, identifying and tackling the root of the problem is the first step in developing constructive solutions.

The act itself

Assuming, therefore, that it is good to be proactive and transparent as a matter of principle, how should you go about actually communicating gender pay data to internal stakeholders? Perhaps the best way is to present the information in a formal report. As an aside, this is advantageous because the report can be prepared in view of eventually sharing it externally. There are three values to keep in mind when drafting gender pay gap reports:

1. Keep it simple. The facts and the reasons behind them are what matter. Present data clearly and systematically. Likewise, introduce the rationale behind the data in a matter-of-fact way. Gender pay gap reports are first and foremost about educating stakeholders; they make internal staff aware of the reality of any salary differences in their organisation. 

2. Keep it straightforward. The report should focus solely on gender pay gaps. Avoid tangents that will distract from the central goal of educating your workforce about the issue. Keep the report succinct too; there is no need for a gender pay gap report to be long-winded.  

3. Keep it forward-looking. The report should wrap up with an action plan. It should include considered and agreed-upon ways to facilitate employee engagement toward reconciling any existing pay gaps. 

Communicating gender pay data is increasingly becoming an imperative for companies around the world. Internal communications are a key part of keeping an organisation united in working towards reducing any gender pay gaps. Those working in communications should consider ways to anticipate this challenge and demonstrate that their organisation is being transparent and proactive about the issue. By doing so, businesses can address the topic of gender pay gaps head-on and increase trust among employees in the process.

Read part two to discover the other piece of the puzzle – communicating gender pay gaps externally.