London Daily

Focus on the big picture.

Men out-earning women: Five things you need to know

Men out-earning women: Five things you need to know

It was designed to highlight organisations where women were lagging behind and motivate change that would revolutionise workplaces.
But five years after the first set of gender pay figures were published by big employers, the latest numbers suggest a lack of progress. Women still earn on average about 90p at these organisations for every £1 a man does.

So is this any more than a box-ticking exercise?

Here are five things to take into account:

1: The gender pay gap is not the same as equal pay

Measuring a company's gender pay gap means lining up the male employees in order of salary, doing the same for the women, and compare the two in the middle.

So the pay gap isn't just about whether men and women are getting equal pay for equal work (an area covered by law for 50 years).

It's also about how many women there are, what roles they hold , and if they're progressing up the ranks.

2. There are many reasons the gender pay gap might exist

It may be about traditional career roles - hence why construction and finance, traditionally male dominated, have particularly large gaps.

Fields in which women are overrepresented may also have traditionally attracted lower pay. Store staff at Asda, for example, have been arguing in court that they should be valued the same as the largely male workforce in depots.

Gaps may reflect a lack of opportunities- for entering or progressing or corporate culture or attitudes. Or the challenges of responsibilities outside of work.

Some economists claim the gap is a "myth" , suggesting it may reflects women's choices, that they opt out of career progression or even the workplace.

But some may have the choice made for them: research commissioned by the Department for Business, Energy and Industrial Strategy found that 1 in 9 women said they had lost their jobs when they returned to work after having a child, or felt forced out of their job.

3: Getting more women in the door isn't the whole answer

What is definitely true is that the gap opens up once children arrive - men and women earn roughly similar salaries in the early parts of their careers.

For employers, the challenge is hanging on to women, ensuring they have routes to progress.

For carers, disproportionally women, it's balancing responsibilities. And, ahead of last month's Budget which offered more financial help for childcare, financial services group PWC calculated that the challenge and costs of dealing with caring responsibilities in the face of a pandemic and soaring inflation may have halted women's workplace progress.

Later in their careers, a Chartered Institute of Personnel and Development report found that almost 900,000 women in the UK had left their jobs because of menopausal symptoms.

4: Gender pay gap figures may obscure changes - but drive change.

On the face of it, there has, after decades of progress, been no movement in the pay gap overall since big organisations started reporting these figures five years ago.

But some of those with the widest pay gaps admit the scrutiny has been constructive. Less than a decade ago, only 5% of EasyJet's intake of pilots were men - now it's 10%. The spotlight didn't only highlight the gap between pay in the cockpit and the crew in the back - but encouraged more women to become pilots.

Ironically, recruiting more women at entry level can cause the gap to widen before they move up the ranks.

5: Don't just blame companies

Ask gender pay specialists and they'll tell you there are many initiatives that companies can take - tackling unconscious bias, offering more flexible working and encouraging shared parental leave.

But the issue doesn't end at the office door. The experts say society needs to change.

Schools could encourage girls to take more STEM subjects: science, technology, engineering and maths. The variety of flexible, affordable childcare options could be increased. And some men could take on more of the household chores.

But campaigners say gender pay gap reporting may not be enough. Some want legislations to force companies to explain how they intend to close gaps - with penalties for those who fail .

Why bother?

Over her career the average woman can expect to earn almost a quarter of a million pounds less than the average man. But that penalty aside, failing to capitalise on what women can offer may be restricting our wider fortunes at a time when skills are in short supply.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Israel Warns France of Iranian Threats at Paris Olympics
Possible Successors to Rishi Sunak as Conservative Party Leader
Olaf Scholz to Run for German Chancellor Again in 2025
TikTok Fined by UK Regulator for Child Safety Data Reporting Failures
Miracle Baby Born After Gaza Airstrike
Global Tech Outage Caused by Bug in CrowdStrike's Software
Ukrainian FM Open to Peace Talks with Russia, China Reports
EU to Transfer Interest from Frozen Russian Funds to Ukraine
Greenpeace Co-Founder Paul Watson Arrested in Greenland
EU Relocates Summit to Punish Hungary over Orban's Ukraine Visit
Netanyahu Seeks Meeting with Trump During Washington Visit
World's Hottest Day Recorded on July 21
UK Labour Government To Halt Migrant Housing on Accommodation Barge
President Biden Returns to White House After Testing COVID Negative
Trump Says Kamala Harris Would Be Easier Election Opponent Than Biden
Thousands Protest in Mallorca Against Mass Tourism
Immigration Crackdown Targets Car Washes and Beauty Sector
Nigeria's Controversial Return to Colonial-Era National Anthem
Hacking Vulnerabilities: Androids vs. iPhones
Ukraine Crisis Should Be EU's Responsibility, Says Trump’s Envoy
A Week of Turmoil: Key Moments in US Politics
Barrow's Sacred Heart Primary School Faces Long-Term Closure
German National Sentenced to Death in Belarus
Elon Musk's Companies Drop CrowdStrike After Global Windows 10 Outage
US Advises India on Russian Ties Amid Geopolitical Shifts
Trump Pledges to End Ukraine Conflict if Reelected
Global IT Outage Unveils Digital Vulnerabilities
Global IT Outage Sparks Questions About Financial Accountability
CrowdStrike Bug Affects 8.5 Million Windows Devices
Flights Resume After Major Microsoft Outage
US Criticizes International Court's Opinion on Israeli Occupation
CrowdStrike Update Causes Global IT Outage Due to Skipped Quality Checks
EU’s Patronizing Attitude Towards Africa Revealed
Netanyahu Denounces World Court Ruling on Israeli Occupation
Adidas Drops Bella Hadid Over Controversy
Global Outage Caused by CrowdStrike Update Impacts Millions
Massive Flight Cancellations Across the U.S. Due to Microsoft Outage
Global Windows Outage Causes Chaos Across Banks, Airlines, and More
Russia Accuses Ukraine of Using Chemical Weapons
UK's Flawed COVID-19 Planning Exposed by Inquiry
Ursula von der Leyen Wins Second Term as European Commission President
Police Officer Injured in Attack in Central Paris
Hulk Hogan absolutely tore it up at the RNC.
Paris is being "cleansed" of migrants and homeless people ahead of the Olympics.
Lamine Yamal arriving at his school after winning the Euros
Campaigners Urge UK Government to Block Shein's London IPO
UK Labour Government's Legislative Agenda
UK Labour Government to Regulate Powerful AI Models
Record Heat Temperatures in Ukraine Amid Power Crisis
UK Government Plans to Remove 92 Hereditary Peers from House of Lords
×