Guidance Published To Identify Gender Pay Gap Causes
Businesses have been lent a helping hand by the government in the identification of the causes of the gender pay gap with the publication of two new pieces of guidance to assist them in working out why they have a pay gap and what they can do to cut it.
The Government Equalities Office guidance provides companies with step-by-step advice to develop an effective action plan to really tackle the gender pay gap head on. Employers are asked to spot potential areas for improvement such as whether women typically enter the company in lower paid positions than their male counterparts.
A four-step guide has also been brought out to help brands develop an effective gender pay gap action plan, encouraging them to analyse and understand why the gap exists, as well as working with staff to discover what can be done better.
Research shows that more companies have prioritised cutting the pay gap since the introduction of legislation back in 2017. Some 69 per cent of businesses now consider closing the gap as a high or medium priority, a rise of eight per cent on last year.
Victoria Atkins, minister for women, commented: “The gender pay gap is at its lowest level on record, but that is still not good enough if we want to achieve real gender equality in the workplace.
“Last year, 100 per cent of companies in scope reported their pay gap data, but they now need to take steps to put an end to this inequality. These steps includes better engagement from senior leadership, more open conversation about why organisations have a gender pay gap and improving recruitment practices. We want employers to understand the causes of their gender pay gap and create action plans that will close those gaps for good.”
In 2016, research from the McKinsey Global Institute revealed that if women had the same role in labour markets as men, up to $28 trillion could be added to the global gross domestic product in 2025. Bridging the gender pay gap here in the UK could add £150 billion to the country’s economy by this time, so by offering women more support at work, male business leaders could help to create true equality on boards, while closing the gender pay gap.
Just 29 per cent of FTSE 100 board members are currently female, with only 13 CEO and 21 chair positions in the FTSE 350 taken up by women. But the report showed that companies in the top quartile for gender diversity in executive positions are 21 per cent more likely to have above-average profitability than those firms in the bottom quartile.
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