For the first time ever 100% of UK employers identified as being in scope of gender pay gap regulations have published their data.
The UK is one of the few countries in the world to require employers to publish such comprehensive gender pay gap data.
Under new regulations that came into force in April 2017, all employers with over 250 employees are required to report their gender pay gap data. All 10,000 UK employers that the Government has identified as having over 250 workers have now published their data.
The data has shown 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 has also published today [Wednesday 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.
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.
Sheila Flavell, Chief Operating Officer, FDM Group, a global professional services provider with a focus on IT, said:
At FDM diversity and equality have always been our core values and we are proud once again to report a zero per cent gender pay gap for the second year in a row.
Achieving this required a huge effort at all levels of the organisation, including major initiatives such as our women returners and graduate recruitment programmes which help women train and enter the world of technology. We also had honest conversations about senior pay, job roles and increased opportunities for flexible working initiatives to ensure strong representation of women at the top of the company.
Fiona Dawson, Global President of Mars Food, said:
Delighted to see the launch of the Government Equalities Office, ‘What Works’ guidance and to see that the evidence based recommendations within it echo so many of those made by the Women’s Business Council particularly in relation to the importance of flexible, agile and dynamic working.
The gender pay gap regulations and first year of reporting has focused the attention of the businesses community and its leaders on understanding the causes behind their organisations, and sector’s, gender gaps and the importance of putting into place practical solutions and actions to tackle their causes. Supportive guidance such as this document and best practice case studies of what has worked are vital for organisations to now take the next step in ensuring their staff have the same access to opportunity regardless of their gender.
Equality and Human Rights Commission Chief Executive, Rebecca Hilsenrath, said:
Building on the work by the Government Equalities Office, our enforcement approach has proved to be successful, resulting in full compliance by all those considered to be in scope.
We have been clear that it is not only the right thing to do but that we would use all our enforcement powers where employers failed to report. They have taken our warnings seriously and avoided costly court action. We will now be turning our attention to the accuracy of reporting.
The ‘What Works’ advice to employers published by the Government Equalities Office today includes recommendations to:
- Assess candidates based on actual tasks they would be expected to perform in their role, and make interviews more structured to avoid unfair bias creeping in.
- Encourage salary negotiation by showing salary ranges, as women are currently less likely to negotiate their pay than men.
- Introduce transparency to pay, promotion and reward processes.
NOTES TO EDITORS:
- The ‘What Works’ guidance was produced in partnership with the Behavioural Insights Team.
- The guidance, including details of all of the research evidence, has been published on the gender pay gap website, https://gender-pay-gap.service.gov.uk/
- For more information please contact the GEO press office on 0207 023 0600.
- Sheila Flavell, Chief Operating Officer, FDM Group, also said:
The gender pay gap reporting process has been an incredibly positive initiative for UK companies, elevating a vital issue to the top of the boardroom agenda and forcing business leaders to face up to the extent of the problem.
Whilst in some cases the reporting has shown major pay discrepancies in companies, it’s important to recognise that tackling this issue is no easy task. These businesses should be judged on the plans and promises they put in place to reduce the gap, and the willingness shown to make change happen.
- Fiona Dawson, Global President of Mars Food, also said:
Last year Mars partnered with the Women’s Business Council to create ‘The Pipeline Effect’, a toolkit enabling gender parity beyond middle management where the gender gaps within most sectors dramatically increase.
In the toolkit we’ve identified three primary obstacles to women’s mid-career progression. The visibility of relatable role-models, the need for supportive line management and most importantly the access to flexible, dynamic and agile working patterns.
In Mars we’ve embraced this by rolling out multi-level sponsorship and mentoring programmes to support more women into senior leadership positions.
This is supported by our in depth line manager training which ensures our family friendly policies including parental leave and flexible working are applied consistently across the business and ensures all employees hold authentic conversations with their managers allowing our male and female associates to enjoy balanced lives with thriving families and careers.