4th April 2018 marked the day that gender inequality in the UK workplace was finally revealed. And it was far worse than we could have imagined…
Over 10,000 companies took part in the survey. 1,500 missed the deadline and more than 1,000 left it to the day before.
It was found that a staggering amount of women were being paid considerably less than their male counterparts.
The facts are clear to see, as 78% of large UK companies pay men more than women. They also get larger bonuses too, and the median pay gap across all companies involved was 9.7%.
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Who Were The Worst Offenders?
Among those at the top for highest pay gap (per hour) were: Boux Avenue (with a gap of 75.7%), Apple (with a gap of 71%), Ryanair (with a gap of 72%) – according to The Guardian.
However, there did appear to be a large gap for many financial institutions, banks and construction companies. The average gap for the construction sector was 25%, with a 22% gap for those in the finance and insurance sector.
HSBC had an overall gap of 59%, Lloyds and Barclays a gap of 42%. The median gap among UK banks sits at around 40%, more than 4 times the UK average.
Only 8% of the companies who were reported on paid their staff equally (with no gap). Fewer than 1 in 7 firms pay women more than men. 3 of those who paid women more were Tesla Motors, Richer Sounds and Mamas and Papas.
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How Do Other Companies Compare?
The UK government have created a website where you can search all of those (with over 250 employees) who published their pay data this April.
This includes larger companies such as Google, Tesco, Apple, HSBC and The Telegraph.
Their data shows hourly rate differences, per based on quartile and bonus pay data.
An example of what you’ll see can be seen below, with Google UK Limited gender pay data:
It’s Isn’t All About Gender…
But this was not just to show gaps between genders, it also revealed gaps between age brackets as well.
For example, The ONS showed that men who worked 20+ years in the same company earn 20.8% more compared with men who only worked for 1 year.
Similarly, women who work in a CEO role earn around 3.5 times more than those in elementary positions. For men, it becomes 4 times more.
Finally, men and women also stop getting increase in pay at a certain age – for men the increase stops around age 48 and for women age 45. At which point men are paid 65.8% more than when they were 16 and women paid 50.4% more.
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Where Do We Go From Here?
Those who do not make changes to their pay are at risk of court order and fines.
But the risk of having to ‘pay out’ should not be your overall motivation – your staff should be.
Equal pay for men and women should be exactly that, equal. Equality is such a huge part of our society and it is quite a shock to see that women are still not seen as equals.
If you do not pay them equally, how do you expect them to respect each other? One will feel more entitled and powerful and the other helpless and unwanted.
You could be losing amazing members of staff simply due to the amount you pay them.
Your action? To review how staff are paid within your company and reducing (and eventually eliminating) the gap over the next few years – being unbiased when it comes to gender or age.
Not only will you see an increase in staff happiness and productivity, but you’ll also see better staff retention rates and have more loyal employees on your side. What’s not to like?
Feature image credit: Hyejin Kang via 123RF