Employee experience and gender equality: 2025 employer focus

Recruiting new employees is a significant investment, with the average cost estimated at £25,000 per hire, according to Brightmine (formerly XpertHR). Additionally, the Chartered Institute of Personnel Development (CIPD) reports that the average turnover rate for organisations is 34%. 

These statistics highlight the critical importance of getting employee experience right. Employee experience is an employee’s perceived experience of an employer before they start work, during the employment lifecycle, and after they have left. It’s shaped by every interaction they’ve had, and it reflects the overall culture within your organisation.

In today’s competitive job market, top talent holds the upper hand, and potential recruits are very clear about what matters most to them. Fairness and equity at work are coming into sharper focus, especially for Gen Z and Millennial workers. These generations, more so than previous cohorts, want a working environment that aligns with both their social and economic values.

The government is also playing a role in this evolution, introducing more legislation to support social progress. The new Employment Relations Bill, much of which won’t come into effect until 2026, highlights some of the key areas employers need to start paying attention to now to comply with future regulations.

Action plans for Gender Pay Gap reporting

Fair pay remains a cornerstone of a fair workplace, and Gender Pay Gap reporting remains a key part of government plans. Despite the Gender Pay Gap legislation, which came into effect in the UK in 2017, the impact of it remains relatively mild, with significant disparities still remaining. 

With the results publicly accessible on the government’s website, it’s clear that this information is of considerable interest to prospective and current employees. The visibility of these figures becomes particularly pronounced around International Women’s Day, when groups post this information widely on X (formerly Twitter). Companies with 250 or more employees also publish their results on their own websites.

The upcoming Employment Relations Bill extends the reporting requirement to include mandatory action plans and menopause action plans. This new measure will be a welcome development for women. Many women still struggle to advocate for themselves during salary and bonus negotiations, which can leave them vulnerable to inequitable pay practices and result in lagging behind their male counterparts. So, more transparency in this area is key for progress towards gender pay parity. Forward-thinking business leaders are already addressing these issues proactively and making sure they benchmark their workforce’s compensation to ensure fairness across the board. 

Reminder: The Gender Pay Gap annual reporting deadlines are fast approaching – 4 April for all private employers and 30 March for all other employers with 250 or more employees.

Making flexible working the “default”

Policies should have already been updated to grant employees a day one right to request flexible working following a recent change for all employers. Future changes will require employers to demonstrate, in writing, that any decision made is a reasonable one, which should not impact organisations that are operating in a fair and transparent manner already.

This presents an opportunity to review recruitment planning and decision making. Before finalising a role, consider ‘what if’ scenarios: if a role can be performed more flexibly, why not advertise it that way and potentially expand your talent pool? If a role requires a more fixed working pattern, ensure the rationale is clearly documented so that managers are better prepared if a flexible working request is made at the recruitment stage.

Enhanced family leave policies

The introduction of new redundancy protections under family leave policies, alongside statutory neonatal care leave, marks a significant step forward. The upcoming Employment Relations Bill promises further enhancements to family leave, reflecting the evolving needs of the modern workforce. These changes aim to ensure that family leave is accessible from day one. However, the leave is still only payable at a statutory rate or unpaid, making it financially difficult for some people to opt into it.

For employers wanting to be an employer of choice, enhancing family leave policies can be a key differentiator. Leading firms are already setting a strong example by offering up to six months of paid family leave, which not only strengthens their employer brand but also helps to address gender pay gaps.

Now may be the time for your organisation to review its whole offering and make that part of its gender pay action plan.

If you’re interested in learning more about creating an impactful gender pay action plan tailored to your business, please contact Kerri Constable or Steve Sweetlove.