The National Association of Pension Funds has called on government to tackle “very limited reporting” by companies on how they manage their workforce and the consequences of this lack of transparency for long-term investors, such as pension schemes.
In its submission to the government’s consultation, titled ‘Closing the Gender Pay Gap,’ the trade body suggested a clearer line of sight is needed into how a company’s workforce is composed, nurtured and motivated and subsequently how stable and productive it is in order to inform judgements on sustainability.
Better corporate reporting on the gender pay gap will provide an insight into whether companies are making full use of the talent available to them, the Napf argued.
Joanne Segars, chief executive of the NAPF, said disappointingly companies that are transparent with such reporting are in the minority and many still fail to provide any meaningful data on this issue – failing to assure investors and customers alike that this topic is being taken seriously.
She said: “Our considered view is that while we encourage the government to introduce new requirements for companies to report on the gender pay gap, this should form part of a drive to improve the quality of corporate reporting on the wider issue of the workforce, or human capital.
“This will prevent the gender pay gap being seen out of context and bring much greater scrutiny to an area which is fundamental to the long-term success of UK companies.”
In July, Aegon’s managing director of workplace solutions Angela Seymour-Jackson argued both employers and employees must push harder to make sure the gap between male and female pensions is closed.
She commented: “Improvements will only come if employers are pushing from one side just as hard as their female employees are pushing from the other, and the effort they put in will bring benefits for both sides.”
Figures published last December by Scottish Widows revealed that the gap may be closing, with the number of women in the UK saving adequately for retirement reaching a four-year high, up 10 percentage points from 40 per cent since 2013.
In addition, the report showed that the gender gap is closing, with the former nine percentage point gap between women and men in 2013 now reduced to five.
peter.walker@ft.com