Dr. Kara McGann:

I will address the matter of 25 or more employees. With regard to the staggered approach, while it looks like a straightforward calculation on paper, it is not, due to resources required when one looks at regulation and what is included or excluded in the bonus definition or total remuneration. For example, a person on a period of unpaid leave is not counted, overtime is counted and shift work is not counted, using the UK model. This has added a layer of complexity. We have said that starting with companies of 250 or more allows us to work out all the bugs in the system with companies that have resources to do that. When we have fine-tuned that, cascading it down layer by layer will allow it to be something that we learn from with larger companies before we get to smaller companies which often do not have dedicated human resources or financial employees in place in-house. It would be a much greater burden on them to start off. That is the reason for the cascading approach.

With regard to the narrative, the gender pay gap figure, without both organisational and sectoral context, is meaningless. The narrative allows one to understand where that figure is coming from, why it has come about and what factors in the organisation and perhaps external to it are at play. There may not be enough graduates coming through in a particular area to even start a balanced pipeline at the entry stage or people may not be returning. The organisation has to look inside to see what policy issues or bias exist but equally we have to look outside and ask if there is an issue with the cost of childcare, so that we can approach this from all angles to solve it.