Transparency on the U.K. gender pay gap
Effective 6th April 2017, thousands of U.K. employers will have to publish pay differences on the earnings of men and women. Any organizations with 250 or more employees now have to reveal any gender discrepancies in remuneration between men and women by April 2018. [Tweet "The new regulations, impact more than 15 million people, which is almost half the U.K. workforce."]
Managing the gender pay gap
Currently the UK national gender pay gap stands at 18.1 percent, according to the Office for National Statistics estimates. Employers will be required to publish figures from a “snapshot” period in April, calculating the median and mean pay gaps, the proportion of men and women in each quartile of the payroll and the gaps reflected in any bonuses -- including the proportions of male and female bonus recipients. Companies are also urged to create action plans to bridge the gap.
Gender pay gap and equal pay
The gender pay gap and equal pay are complex issues and many end up confusing the two concepts. Equal Pay applies to situations when men and women are being equally remunerated for doing the same work. This has been on the statute books since the 1970s. [Tweet "It should be a straight forward, legally enforceable exercise, but it isn’t."] There are times when men and women are supposed to earn the same, but they don’t. Even at graduate entry-level or post MBA, discrepancies start to emerge.
The Gender Pay Gap focuses on the average hourly pay for men and women across an organization. It is usually skewed because men dominate senior roles. So it will never be straight forward. Factors such as continuous service play a role, as well as the weighting given to different functions within organizations. A highly competent woman might earn less than a mediocre man simply because she took a short parenting gap. Functions with P & L responsibility usually carry higher remuneration levels than pink skill silo jobs where women tend to be channeled (HR, marketing, communication.) Jobs associated with the employment of women tend to pay less and don't attract men.
Scale of problem
The scale of the problem has probably not been totally identified because many companies have never made the necessary detailed calculations. Those that have done the work, have corrected some of the major anomalies, but not all. The cost of doing that exercise would be too significant.
Gender pay gap transparency is not the total solution, but will certainly play a valuable role of a wider process to boost any move towards gender parity. As the social proofing of companies becomes more commonplace, women are able to research companies and organizations about how they treat female employees. Information in the public domain will encourage women to decide whether to accept a role in a company that is openly under performing at managing their gender pay gap. [Tweet "84% of young women that the gender pay gap is a factor in rejecting job offers. "]
So we will see what difference if any transparency on the overall the gender pay gap will make.
Need help with gender balance in your company? Contact 3Plus now!
Found that interesting?
Learn more about our services
Make your dreams a reality with a professional evaluation of your career to date.
The evidence is in. More women in your company can deliver 35% greater financial returns. (Catalyst)
Dates for the Diary
August 25th Coaching and Discussion - Navigating uncertainty in the post Covid workplace
with Dorothy Dalton and Khady Gaye
Download and listen free podcasts
How to Create an Effective USP What is a USP? Our Unique Selling Point or UVP (Unique Value Proposition) is our key core message about where...read more
How to Rethink the Modern Workplace for Gender Equality New research shows that diversity and inclusion is a top priority for leaders. So why...read more
Menopause in the workplace In this podcast with Nicki Williams award winning author, keynote speaker and Founder of Happy Hormones for Life,...read more
How to Cultivate Empathy in the Workplace Nancy Milton, international business communications expert, keynote speaker and author, share some vital...read more
Taking Care of your COW Tanvi Guatam, international Personal Branding expert says there is a misconception out there that a personal brand is...read more
The importance of Hard Talk Dawn Metcalfe, author of Managing the Matrix and Hard Talk, shares with us tips to achieve the lasting communication...read more
When Does Female Rivalry Turn into Sabotage There’s a lot of stuff written on social media about female rivalry and competition between women. Some...read more
Goal setting tips to boost your career The happiest people are those that really love their jobs. Those that don’t, dread Sunday nights and...read more
Sexism: How to stage a Bystander Intervention in the Workplace In this power coaching podcast, we're going to tackle one of the questions...read more
How to Get Noticed by Head Hunters & Recruiters In this power coaching podcast, we're going to tackle one of the questions asked multiple...read more
With a dwindling number of women in tech we need to examine what stigmas still exist and how to tackle them as early as possible. Dorothy Dalton explores how gender stereotypes impacts the education pipeline.read more
Gender burnout is a new phenomenon affecting professional women, brought on by gender unbalance at work, the home and socially. Here’s what it means.read more
We can take advantage of this turbulent time and rethink the talent sourcing process to attract and hire more women.read more