Over the last few weeks we have been running the Autumn Roadshow 2016: Future Ready Reward. We’ve been talking to a number of senior HR professionals about the key issues facing HR at the moment and how to future proof your business using HR technology. Read on for part two of our key points from the Roadshow. Read part one: ‘Be the app, not the map’ here.

First, what is HR v2.0? The term comes from web v2.0 - the way the internet changed from passive content to user-generated content. HR v2.0 refers to how HR needs to change to fit into a very different world. It’s a greater change than evolution, it’s a new world of HR.

I’ve noticed since September, there’s a sense of urgency - even panic, about the impending gender pay regulations. But how can you apply future ready reward and smart intelligence to a topic like gender pay? We know that HR v2.0 is not just creating the numbers - this is map style. But clients are coming to us asking what to do next. This is our approach.

A client asked me recently, ‘surely generating the number for gender pay reporting will take half a day?’ And he was right - you can download our free calculator to do it. But the numbers will only raise questions and HR v2.0 is all about adding value, anticipating and answering deeper questions, and driving the agenda forward.

Step 1. Finding the headlines

The first, and last, part of the process is finding your numbers - accurately and to the required standard. Running the calculations to get a broad overall picture against the regulations is key. There may be some minor changes when the final regulations are published, but what’s important now is getting a handle on the problem. You’ve got a legacy situation to report on, but HR v2.0 is only using this as a basic platform to develop their whole narrative about gender pay. You can then start the debate at a senior level about ‘what next?’

Step 2. Uncovering risk

One of the main concerns of organisations is that publishing their gender pay difference is likely to cause disquiet and uncertainty among engaged employees. It’s also possible that ‘no win no fee’ lawyers will target high profile organisations with a large gender pay difference to encourage female employees to bring a case against their employers for an Equal Pay claim.

There are obvious ‘fails’ in any organisation's Equal Pay risk profile. Without a working job evaluation system, you’re at automatic risk from claims of equal value.  Without robust market benchmarking, it’s hard to have an effective market pay defence. HR v2.0 is about doing further discovery work and an Equal Pay Audit where you can identify and resolve any risk now and mitigate risk of future legal claims. Not understanding the possible risk that an organisation faces is tantamount to having a large, unidentified liability on the company balance sheet. Shining a light into dusty corners gives you greater awareness of the issues and puts you on the front foot, and gives you time to start having the debate now – not when you’ve got an equal pay claim on your desk.

Step 3. Taking control

HR v2.0 is making long-play changes now which improve the pay gap in future years, making your organisation more attractive to female employees and improving your talent pool. Big ships like Barclays and PWC are talking loudly about what they’re doing to improve their gender imbalance and participation of females at senior levels. When that’s happening, you know the tide is changing. Your job is to help your organisation identify what has to happen to lead change.

At the moment, clients are struggling to understand what they can do to make a difference, particularly in the face of overwhelming gender pay gaps. Our solution is to help you by developing and tracking key metrics which will enable you to understand where current policy and practice may be subtly driving differences which build up over time.

Step 4. Creating your narrative

At this stage, there’s not a great deal that can change in terms of your headline gender pay gap figures in your organisation by April 2017. You may well have already paid the bonus you will be reporting. However, publishing the basic data with a narrative background to explain how the organisation ensures fair treatment of its employees is key in building an organisation that employees are proud to join and you are proud to lead.

Organisations are increasingly aware that finding and recruiting key talent is the biggest barrier to growth. Creating a good story to tell on gender pay and fairness of opportunity is critical in ensuring that despite the significant headline numbers, your organisation is a good place to work for men and women. Understanding how these differences can be managed, and improving inclusion and pay fairness, will be part of the wider drive to establish a culture of fairness and embed these values into your business.

Step 5. Leading the way

Building an organisation that employees are proud of is key to employee engagement and so attracting and retaining talent. HR v2.0 allows us to spend time focused on the commercial impact of our roles. It’s no good being so focused on filling in the payroll sheet on the table that we lose sight of the business critical stuff. If HR were an app then acquiring, developing, and retaining high performing talent is what the app would focus on.

For more information on how we can support you with gender pay reporting, please get in touch: 020 3457 0894.

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