How to carry out an equal pay audit

How to carry out an equal pay audit

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The potential cost of failing to comply with equal pay requirements has been brought into focus recently with the disclosures around the financial situation of Birmingham City Council. Dating back more than 10 years, the council says it has “already paid out a total of £1.1 billion” in equal pay claims. But “refreshed analysis” suggests an additional liability of up to £760 million – leaving it with “one of the biggest challenges [the] council has ever faced”. And some big headlines, too!

The numbers involved in this case are high, but the message is the same whatever the size of your organisation – not only is equal pay a legal entitlement, it has the potential for costs to snowball and cause damage to your brand. Acting before there’s an issue will reduce the need for the “difficult choices” now facing the council.

Conducting an equal pay audit need not be daunting – use our guide below to understand the steps to be taken and who to involve.

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