Tags: Gender pay gap
As part of our work at the IBE’s Research Hub, we are collating Gender Pay Gap reporting figures and analysing the narratives. The ethical issues which underlie the disparity in gender pay gaps are those of choices and opportunities, and we are reviewing organisations’ narratives with interest.
“The British companies with no gender pay gap - and how they did it” is the headline which caught our attention in the run up to the deadline for companies which had to report their gender pay gap (GPG) figures at the beginning of April.
Judging by the media reporting, the ultimate goal of GPG reporting is to “fix” the gender pay gap. In other words, make organisations think about how they can narrow or at least bring the gender pay gap close to zero.
The gender pay gap captures the average difference of what men and women earn across an organisation. It should not be confused with equal pay, which is the difference between what men and women would earn for performing the same or a similar role, something which is prohibited by law.
As part of our work at the IBE’s Research Hub, we are collating GPG reporting figures and analysing the narratives. The ethical issues which underlie the disparity in gender pay gaps are those of choices and opportunities, and we are reviewing organisations’ narratives with interest.
These narratives should help companies look at the underlying root causes of their GPG, and develop the programmes and processes to address them. For example, while companies may have family friendly policies in place, the reality in practice may tell a different story. The data will help to show where the challenges in recruitment and retention lie.
Provisions such as flexible work, female leadership programmes or part-time positions and incentives for men to take parental leave are only a few of the suggestions.
Of concern, as with any form of mandatory reporting, could be the desire to cheat the numbers and “fix” the GPG by other means. Outsourcing lower paid work normally fulfilled by women and hiring less women in junior positions, while improving next year’s numbers, could have the reverse affect to what the new regulation aims to achieve.
Having a low pay gap does not necessarily translate into a fairer place to work. Organisations with no pay gap (such as the British Museum), with a low pay gap (for example Toyota) or a pay gap in favour of women (for example Diageo) do not automatically make these places a better place for women to work than others.
It also doesn’t mean that these organisations have a more diverse workforce. Take the example of Vauxhall: Vauxhall UK reports a mean gender pay gap of -0.8% which means that women on average earn 0.8% more than men. At first sight this may seem advanced, but a closer look at the report reveals that the percentage of women in each pay quartile is still less than 15%.
The real value in reporting on the GPG is the debate that comes with it.
GPG reporting encourages all organisations to engage in discussions about what equality in the workplace truly means.
- Should the organisation also look at diversity across other “markers” of identity?
- Are there clusters of specific individuals in certain pay quartiles?
- How do hiring practices look? Can they be improved to eliminate unconscious bias?
- Understand other reasons behind pay gaps (is it because the industry is unattractive? Why? What can be done to change that?)
Improving access to the job market and creating equal opportunities for everyone can go far beyond the lines of gender. While pay gap reporting is only required on the difference in gender, organisations could begin to look at how diverse their workforce is along other lines of other identities - race, religion, age, sexuality, nationality and disability. GPG reporting should be seen as an opportunity to help create fairer workplaces – with equal access to learning and development - for all.
While reporting on pay gaps will not “fix” the issue, thinking deeply about the reasons behind them may help workplaces become more inclusive. This will not only improve corporate reputations, but could also lead to hiring a more diverse, talented and creative workforce.
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