Now is the time to start thinking about gender pay gap reporting…

The gender pay gap is the difference between male and female earnings?and mandated gender pay gap reporting was introduced in April 2017. The gender pay gap reduces women’s lifetime earnings?and?affects their pensions - this is one of the significant causes?of poverty in later life for women.?The persistent gender pay gap, reflecting income disparities between men and women, continues to be a significant concern for employers, regardless of whether they meet the reporting threshold.?

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Over the last decade?the gender pay gap has?fallen by approximately a quarter among both full-time employees and all employees, but there is still some way to go.?Among all employees, the gender pay gap decreased to 14.3% in 2023, from 14.4% in 2022, and is still below the levels seen in 2019 (17.4%).

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New?analysis?of the ONS’s 2023 gender pay gap data, by HR and payroll software provider?Ciphr, revealed that 78% of all full-time job roles in the UK have a gender pay gap in favour of men. That’s around four in five occupations with a gender-based pay disparity. Of those jobs, well over a quarter (30%) pay men at least 10% more per hour, on average, while a third (32%) pay men between 5% and 9% more.?The most significant pay gap (26.2%) exits in the roles of Financial Managers and Directors, followed by Business and Financial Project Management Professionals (11.3%).?Reports based on last?years?gender pay gap specifically highlight that ad-land still has some way to go, you can read more?here .?

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In the landscape of gender pay equality, employers carry not just a legal obligation but a profound moral and ethical responsibility. Moving beyond compliance, organisations must recognise and rectify the value of every employee, ensuring equitable compensation for their contributions. Closing the gender pay gap goes beyond a legal requirement; it signifies an investment in talent retention and the investment into a positive work environment that fosters loyalty and engagement among both part-time and full-time workers.

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Moreover, taking a proactive stance on gender equality enhances an employer's reputation in an era where corporate social responsibility has never been more important. Companies actively addressing gender pay disparities are perceived as socially responsible, attracting diverse talent pools, and improving their overall brand image. The impact of narrowing the gender pay gap extends beyond organisational boundaries, contributing to broader societal conversations about inclusivity and equality.

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Part-time workers, often predominantly women, disproportionately bear the weight of the gender pay gap. Employers need to recognise that pay disparities impact not only those working full-time but also part-time employees, thereby contributing to broader?societal inequalities. Part-time?work?frequently slows?an individual's?career projections and career advancements compared to their?full-time?equivalents.?Many women opt for part-time work due to family commitments, personal preferences, or other life circumstances. However, this choice should not translate into compromised pay. Employers must proactively assess the impact of flexible working arrangements on part-time workers' earnings and take measures to ensure fair compensation.

Understanding and addressing the specific challenges faced by part-time workers is integral to any comprehensive approach to?the?gender pay equity strategy employed by an organisation.?

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Part-time workers may face limitations in career progression and development opportunities within organisations. This underscores the need for employers to review and adjust policies, ensuring that part-time employees have equal access to career advancement initiatives, training programs, and skill development opportunities.

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The professional aspirations of part-time workers should not be stifled by the constraints of their working hours. Employers should implement strategies that actively promote a culture of inclusivity, ensuring that part-time workers are afforded the same opportunities for growth and advancement as their full-time counterparts.

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Even in occupations that are dominated by women, they often still get paid less than men on average. At least 60% of the UK’s full-time care workers, secondary school teachers, administrative and clerical assistants, bookkeepers/payroll managers and wages clerks, and primary school teachers, are women. Yet, all these job roles have a gender pay gap that favours male employees.

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Roles that are considerably more gender-balanced don’t fare much better when it comes to the gender pay gap. Despite a relatively similar number of men and women being employed as generalist medical practitioners (including GPs and hospital doctors), sales and retail assistants, and marketing and commercial managers, the women employed full-time in these jobs typically only earn an average of 85p for every pound earned by a man.

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While the UK government has taken steps to address the gender pay gap through mandatory reporting for larger companies, the current framework has its limitations, particularly for organisations below the reporting threshold. It may not capture the nuances of gender disparities within these organisations, making it essential for employers to adopt a more comprehensive approach, even under the threshold.

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Occupational segregation, where women are concentrated in lower-paying roles, often goes unnoticed within the current reporting framework. Employers should provide a detailed narrative, dissecting job categories to identify and rectify gender imbalances, ensuring fair representation at all levels. A nuanced understanding of the composition of the workforce is vital for implementing effective strategies to bridge the gender pay gap.

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A comprehensive narrative around final gender pay gap numbers is crucial for employers, irrespective of whether they are mandated to report. This narrative allows organisations to understand the specific challenges faced by part-time workers and implement targeted strategies to address these challenges. A mere focus on high-level figures can mask the intricacies of gender disparities within organisations.

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For employers below the reporting threshold, the imperative to bridge the gender pay gap is deeply rooted in moral, ethical, and business considerations. While the UK government's reporting framework provides a starting point, employers must go beyond compliance.Communicating, implementing strategies, and?focusing?on this important area will generate so many positive outcomes for an employer.?Communicating the results, addressing the?concerns?and utilising expert resource supports a transparent way of working and builds trust with employees that this is an issue being taken seriously.?

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As the deadline for mandated pay gap disclosure in early April approaches, the conversation surrounding this crucial issue is expected to intensify. Employees are likely to seek transparency from their employers regarding their stance on bridging this gap.

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With a breadth and?depth?of experience across the team,?JourneyHR?are well placed as a HR Consultancy to support the assessment of gender pay gap within you organisation – with tools to make it quicker and experiences of publishing for large and small organisations.?Should you require assistance in refining your reporting or devising a comprehensive people strategy to instigate transformative change throughout your organisation, feel free to reach out to?me for a further discussion on [email protected] .