Today as the Equal Pay and Flexible Working Bill has its second Reading in the House of Lords, the CIPD has called for a more concerted effort from government to promote the business benefits of Equal Pay practices. 

Charles Cotton, CIPD's reward adviser, said, "There are clear business benefits to conducting Equal Pay Reviews (EPRs), but there is a lack of understanding amongst employers as to what those benefits are. 

“Particularly, in economic conditions such as these, it is crucial that employers can see how linking employee contribution to pay ensures they are not wasting limited financial resources.” 

According to the CIPD’s forthcoming Reward Management Survey, only 54% of employers have conducted or are intending to conduct an EPR. Cotton believes the government should do more, in the private sector, to promote the business benefits of voluntarily conducting such audits, rather than making them mandatory. 

He also expressed his support for proposals to outlaw gagging clauses, which ban employees discussing their pay with colleagues. “Pay transparency cannot only encourage pay equality, but also is vital for staff motivation and solid employee engagement."