Mind The Pay Gap!
Do you wonder what the difference is…between the equal pay gap and gender pay gap? Is it a battle of the sexes that will drain your resources, or an opportunity to capitalise on the strength in diversity within your company?
You’re not alone and it’s important to understand those differences so that the actions you take are channelled in the right areas, for the right reasons and will ultimately achieve the right results.
The gender Pay Gap: Is a measure of the difference between men’s and women’s average earnings across a company or the labour market.
The equal Pay Gap: Is about men and women in the same employment performing equal work and not being paid equally for it.
We know that Women and men have been entitled to equal pay for equal work ever since 1970, when the Equal Pay Act was introduced. In 2010 the law on equal pay has been set out in the ‘equality of terms’ provisions of the Equality Act 2010 and includes basic pay, and ‘pay’ is inclusive of occupational pension benefits, non-discretionary bonuses, holiday pay, sick pay, overtime and shift payments. ‘Pay’ also includes non-monetary contractual terms such as leave, company cars, or access to sports and social benefits.
The ideal result is of course that the pay gap between genders becomes non-existent, but for that to happen there are several things that need to be addressed. To help you and your business to do this here are some important key drivers and information to support you on that journey:
Transparency and targets: Being very clear that what gets measured, gets managed, and what gets measured is clearly communicated to all involved.
CMI’s research shows that the gap for junior managers is 6%, in the middle it’s 22% and for more senior (often more mature) women it’s got worse in the last decade, reaching a staggering 35%.
Build coalitions: Include men in the gender diversity debate.
In the UK, the campaign to double the percentage of women on FTSE boards has made tremendous progress by building a broad-based coalition across business, government, advisory groups and the media.
Girl Power: Connections and networking matter and empowering women to get better at recognising and celebrating their competence and become more confident at shouting about it.
Recognise and commit to a changing culture: Here are several examples of what good practice looks like:
- flexible working
- performance reviews that focus on informal ongoing conversations and outputs, not facetime
- reverse mentoring, where millennial women coach middle and senior managers on how not to behave
- mixed shortlists and recruiting panels
- sponsorship of key maternity returners and other talented women
Diversity: There is strength in diversity. Differences offer varied perspectives and can create greater opportunities for innovation, continued development and business success. Consider the need to change Policies, Processes and Behaviours in order to truly enable diversity and inclusion.
The acas Gender Pay gap reporting initial findings tell us:
- more than 10,000 (94%) of reports was received by the deadline in April 2018
- 78% in favour of men
- 14% in favour of women
- 8% claim ‘no pay gap’
- the biggest pay gaps found to be in Construction and Financial services
- the smallest pay gaps found in Human Health and Social work
Get in touch and let us help you to shape your business! Send in your story and tell uswhat diversity means to you and your business and celebrate how your business has changed the pay gap between genders.