EMPLOYERS are not bound by law to conduct equal pay reviews. And of those employers who do, unfortunately, most fall well short of the ideal described in the Equal Opportunities Commission (EOC) code of practice. In a study commissioned by the EOC last year, most companies’ reviews made only a basic analysis of pay. Few used a system to compare work of equal value and there was “little or no action to address any gender pay gaps”. So what makes a good equal pay review? Several companies in today’s top 50 can offer some useful tips:

Act on the results. In 2002 Lloyds TSB worked with the EOC to create an equal pay audit that is now recommended throughout British business. Importantly, the company acted on the inequalities the review highlighted. “We designed a new pay system which was totally transparent — with reward clearly linked to individual contribution,” says Tim Fevyer, senior manager of compensation and benefits. “We drew up plans to ensure that the inequalities could be addressed while balancing the need for fairness and good employee relations.”

Be innovative. At Barclays, the relatively simple measure of ensuring that the pay review is conducted before bonuses are awarded has help to iron out pay discrepancies.

Avoid complacency. When pay reviews at Britannia and the Royal Mail revealed no inequalities between male and females doing equal work, the companies refused to sit back. Both are aiming to increase the number of women employed on higher grades. “Compared by gender, we are aware that the average salary of employees is different and this is because of the high number of females in bands 3, 4 and 5,” says Sarah Emery, Britannia’s group diversity manager. “

We are looking at ways, through recruitment, succession planning and development, of increasing the number of females at higher bands.” Ninian le Blanc, Royal Mail’s diversity director, agrees: “We need to make sure there is no glass ceiling.”

Offer support. “Women are more likely than men to dip out of their careers because of family commitments,” says Richard Gartside, director of strategic policy at Ernst & Young.

“A legacy of that is fewer women in higher paid positions. So there needs to be support to ensure that women either don’t dip out or can come back quickly if they want to.”

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