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Enough talk. We’ve heard it all before. Let’s just do it!
These words, a tweet from @LaraOyedele popped into my timeline in response to an article in Diversity Woman Magazine which revealed that, according to research by Bank of America Merill Lynch, “Gender equality can lead companies to make more money.”
This revelation is by no means ground-breaking. Our Knowledge Bank is full of research documents saying the same thing. Yet
Gender pay gap set to last for 36 years
Recent research by Easymoney suggests that the pay gap between top earners is unlikely to close until 2055. The research found that 79% of the 860,000 people earning over £100k pa are men. This has fallen only marginally since 2011, when 83% of the top earners were men.
Academics Geraldine Healy, Queen Mary University of London and Mostak Ahamed, University of Sussex have taken an in-depth look at the Financial Services Sector and identified that women, on average, earn 27.2% less than men an hour, whilst the bonus gap is nearly 50% (and 79% at Barclays).
Moreover, the lack of progress of women in Financial Services is a global phenomenon. IMF chief, Christine Lagarde said at Davos: “The numbers are just appalling … you have 20% of board members and 2% of CEOs who are women.”
2019 Pay Gap reporting reveals poor progress
This year’s Pay Gap figures indicate that far from the pay gap narrowing in the past year, it’s widened with four in ten private companies reporting wider gaps than last year. Surely it’s time for companies to publish Action Plans alongside data and narrative.
The pace of change is slow – let’s change that!
At a recent Lunch, I sat with 3 other women. By pure coincidence we were aged 75, 65, 55 and 45. Our conversation turned to the progress of women in the workplace. We concluded that (1) regrettably there has been much less progress than any of us anticipated and (2) none of us thought at the age of 25 that we’d be saying this 20, 30, 40, 50 years later.
Yes, it’s time to be a bit more Lara – LET’S JUST DO IT!
Are you earning what you’re worth?
– global executive gender pay gap falls dramatically to 8.7%
– UK gap nearly halves since March to 12%
– US leads the way with gap dropping to 2%
– CEOs have the biggest gender gap of 31%
– in Technology, gender gap has reversed in favour of women
Research published last November has highlighted the impact equality legislation is having on the gender pay gap for senior executives, with the global gap nearly halving to from 17.1% to under nine percent (8.7%).
While the UK is witnessing the largest narrowing of the gap – in the six months from March it fell from 21.5% to 12.2% – executive pay is noticeably more equitable in the US, where the gender gap decreased from 7.9% to 2% during the same period.
The findings have emerged from global analysis of remuneration packages of over 7,700 executives earning over $100,000 conducted by The Pay Index, the leading source for senior executive compensation and part of the international human capital specialist firm Leathwaite.
Before new regulations in the UK were implemented in April the gap was significantly larger. In the United States, last year’s introduction of legislation in several states which restricts companies from asking prospective employees about their existing pay has effectively given the country a six-month lead in the battle for pay parity.
James Rust, founder and managing director of The Pay Index said
These laws have put gender pay firmly under the spotlight. The Pay Index is providing us with an unrivalled insight into the current global gender pay gap – and with over 100 new executives adding their profiles every week, it’s allowing this on-going debate to be underpinned by real-time statistics.
However, there is still much work to be done to create parity, but the speed and direction of the trend is a very positive sign. We’re hopeful that in a further six months, the size of the gap we’re seeing in the UK will gravitate much more closely to those figures in the US.
It’s well documented that companies are facing increasing challenges to attract and retain talent – at all levels – due to skills shortages, high employment levels and increasing job opportunities. As such, companies with gender pay gaps will find it increasingly difficult to maximise their performance if they do not embrace pay parity. Pay parity is a positive thing for both individuals and business.
The Pay Index analysed trends within ten key industries over the last six months
- CEO … the gender gap has almost halved. Currently men receive 30.5% more vs March when they were paid 52% more than women
- Legal … the gender gap is falling. Currently men receive 29.1% more vs March when they were paid 35.4% more than women
- Technology … the gender gap has reversed in favour of women. Currently women receive 9.2% more vs March when men were paid 6% more than women
- COO / Operations … the gender gap has shrunk and is now almost non-existent. Currently women are paid 0.1 % more vs March when men were paid 11.9% more than women
- Sales, product, marketing and digital … the gender gap has almost halved. Currently men get paid 8.6% more vs March when they were paid 15.5% more than women
- Risk … the gender gap is falling. Currently men get paid 2.1% more vs March when they were paid 4.6% more than women
- Audit … the gender gap has narrowed but still favours women. Currently women receive 16.2% more than men vs March when they were paid 23.7% more than men
- Information Security … the gender gap has narrowed but still favours women. They currently receive 11% more vs March when they were paid 13.2% more than men
- Finance, Tax & Treasury … the gender gap has widened in favour of men. They currently receive 7% more vs March when they were paid 3.1% more than women
- Compliance … the gender gap has narrowed slightly but still favours women. Currently women receive 5% more vs March they were paid 6.6% more than men
- HR … the gender gap is falling, but in a function where there are more women employed than men, currently men receive 14% more vs March when they were paid 18.6% more than women
Check out your salary
About the data:
– the findings are based on the analysis of 7,708 senior global executives in September
– the respondents analysed lived in 452 different cities across 64 countries
– the original data set (3,912 respondents) was captured in March
– approximately half of the database work within companies with over 10,000 employees
– 90% of the database possess a Bachelors’ and / or Masters’ degree
– 86% of the database possess 16 or more years in industry
About The Pay Index:
The Pay Index, which is the leading source for senior executive compensation, is a wholly owned subsidiary of Leathwaite Human Capital Limited.
Leathwaite was formed in 1999 and is a leading international firm of human capital specialists with offices in London, New York, Hong Kong and Zurich. With a leading reputation for delivering exceptional executive search, executive interim, management consultancy and market intelligence solutions, Leathwaite is seen as a partner of choice for some of the world’s most innovative and ambitious companies.
Nearly two-thirds(61%) of women would take an organisation’s gender pay gap into consideration when applying for jobs , a new survey from the Equality and Human Rights Commission reveals.
The poll, commissioned to understand the impact of the gender pay gap on staff motivation and behaviour, also shows that 58% of women would be less likely to recommend their present employer as a place to work if they had a gender pay gap, and half of women say that a gender pay gap would reduce their motivation in their role and their commitment to their employer.
The findings suggest that businesses with larger pay gaps than their competitors are at risk of losing out on the best talent and suffering reputational damage if they do not take action to reduce it, placing them at a competitive disadvantage.
The Equality and Human Rights Commission’s Chair David Isaac, speaking at the ACAS Future of Work conference, said:
The message to all employers from your existing and prospective female staff is very clear from these results. They want action, and if they don’t see change there is a very real risk that they won’t join you or, most importantly, stay with you. It will also affect their commitment to you.
It’s crucial that all employers think seriously about this issue and demonstrate to their workforce that they are committed to closing the gender pay gap. A working environment which allows everyone to achieve their full potential is vital. If you don’t deliver on this you will fail to access a huge talent pool and will put your business at real competitive disadvantage.
Sam Smethers, Fawcett Society Chief Executive, said:
Most organisations will have a gender pay gap. What matters is whether their female staff, and those they want to attract to work for them, can see that an employer has an action plan in place to close it and is committed to driving change.
Ultimately, in a competitive jobs market women will vote with their feet. Employers need to take this seriously. Gender pay gap reporting is not going away and women expect to see progress.
Carolyn Fairbairn, CBI Director-General, said:
These data show just how important real action on closing the gender pay gap is. Of course women must have equal opportunity in the workplace and expect potential employers to deliver.
Gender pay gap reporting has shone a light on this important issue. Transparency is a potent tool for progress: what gets measured, gets changed. The litmus test of success is now what firms do to improve their scores and create more diverse and inclusive workplaces.
But the gender pay gap will not be closed by company action alone. Businesses want to work in partnership with the Government to provide better careers advice in our schools, improve technical education and offer affordable childcare for working parents.
- Women, people aged 16 to 34 and those from BAME backgrounds were significantly more likely to agree that their behaviour and motivation at work would be affected by a gender pay gap than men, older employees and white employees.
- For example, 56% of women said that their organisation having a gender pay gap would reduce their motivation in their role, whereas only 25% of men agreed with the same statement. 39% of men said that they would feel less proud to work for an employer with a gender pay gap, compared to 60% of women.
- The research also points to a worrying lack of substantive action taken by employers to close their pay gaps. It found that whilst 91% of employees had heard of the gender pay gap, almost half had not read or heard any information about their organisation’s own gap and a quarter of employees think their employer should be doing more to tackle it.
- Around three quarters of respondents (80% of women and 69% of men) would be willing to take part in actions and activities to help their employers tackle the gender pay gap.
- However, a quarter of respondents didn’t feel at all able to influence their employer’s response to tackling the gender pay gap, raising further concerns about a lack of action leading to staff disengagement.
- Employers should produce action plans with specific targets and deadlines alongside their pay gap figures, which clearly set out what their data has told them and what action they will be taking to close their pay gaps.
Start tackling the challenge by paying women fairly…
A new global survey of women working in technology by IT software specialist Ivanti has found that 63 percent of women feel gender bias continues to damage their professional opportunities and undermine their work environments.
Having suggestions dismissed, being constantly interrupted in meetings and being overlooked for promotion in favour of male counterparts were among the daily challenges faced by the 500 respondents to the survey, published by Ivanti in September 2018.
The survey came as gender pay gap figures revealed earlier this year showed that Facebook’s bonuses for female staff were 41.5 percent lower than men’s, while Apple were 57 percent lower.
Mind the Pay Gap
Some 75 percent of respondents to the Ivanti survey agreed that the best change that organisations and the wider technology industry could make to encourage more women into technology would be to pay women the same as their male counterparts.
As Sheila Flavel, COO at FDM Group, said earlier this year:
Tackling the gender pay gap in the traditionally male-dominated technology industry requires a concerted effort at every level of the organization, to recruit and retain female talent in the workforce.
To remedy this problem, companies need to introduce improved flexible working policies and provide dedicated programmes to recruit returners and work with employees across the company to change for the better, reducing the gap and creating a more vibrant workforce. Closing the gender pay gap shouldn’t be a tick box exercise, it should be about creating a more diverse and productive workforce that ensures everyone is treated fairly – we want to create a country that works for everyone.
Encouragingly, over half of those surveyed have noticed that there are more women working in technology now than there were five years ago.
Sarah Lewis, Director of Field Marketing & UK Women in Tech Ambassador at Ivanti, said,
While it is incredible to see that there are so many more women working in the technology industry than ever before, the report highlights what we have been told anecdotally for years: more needs to be done in order to encourage gender diversity in technology. Women need to be taken seriously and be paid the same as their male counterparts in order to ensure the continued growth and diversity of the tech sector.
Three out of four employers pay their male staff more on average than their female staff
All 10,000 UK employers that the Government has identified as having over 250 workers have now published their gender pay gap data which show that more than three out of four in scope UK companies pay their male staff more on average than their female staff, more than half give higher bonuses to men, on average, than women, and over 80% have more women in their lowest paid positions than in their highest paid positions.
The Government Equalities Office published on 1 August a new ‘What Works’ guidance for companies to help them improve the recruitment and progression of women and close their gender pay gap. This evidence-based report covers
- The most effective actions
- Actions showing promise
- Actions with mixed results
The most effective actions
- Include multiple women in shortlists
- Use skill-based assessment tasks in recruitment
- Use structured interviews for recruitment and promotion
- Encourage salary negotiation by showing salary ranges
- Introduce transparency to promotion, pay and reward processes
- Appoint diversity managers who
- Have a senior/executive role within the organisation
- Have visibility of internal data
- Be in the position to ask for more
- Empowered to develop and implement diversity strategies and policies
Actions that are showing “promise” include
- Improve workplace flexibility for men and women
- Encourage uptake of shared parental leave
- Recruit returners
- Offer mentoring and sponsorship
- Offer networking programmes
- Set internal targets
Minister for Women and Equalities, Penny Mordaunt, said:
It is appalling that in the twenty-first century there is still a big difference between the average earnings of men and women.
While I am encouraged that over 10,000 employers have published their data, these figures set out in real terms for the first time some of the challenges and the scale of this issue.
We need to take action to ensure businesses know how they can make use of their best talent and make their gender pay gaps a thing of the past.