Gender pay gaps
Here at S&G Work Solutions we always try and stay well informed on the latest ‘hot topics’ and the gender pay gap is certainly one of those.
The gender pay gap in the UK refers to the difference in average earnings between men and women. Despite progress in closing the gap over the years, it persists across various sectors and occupations. Several factors contribute to this gap, and different measures have been introduced to address it.
Key Points on the Gender Pay Gap in the UK:
Overview of the Gap:
According to the Office for National Statistics (ONS), the median gender pay gap for all employees in the UK was around 15.4% in 2023. This means that women earn, on average, 15.4% less than men.
The mean gender pay gap, which averages all wages, tends to be higher due to the skewed distribution of higher earners (men are more represented in top-paying jobs).
Factors Contributing to the Gender Pay Gap:
Occupational Segregation: Men and women are often employed in different industries and occupations. Women are more likely to work in lower-paid sectors like healthcare, education, and retail, while men dominate higher-paid industries like finance, engineering, and technology.
Part-time Work: Women are more likely to work part-time than men, often because of caregiving responsibilities. Part-time work tends to be lower paid than full-time roles.
Career Breaks: Women are more likely to take career breaks for reasons such as maternity leave or caregiving, which can affect career progression, salary increases, and pension contributions.
Promotion and Leadership: Men are more likely to occupy senior management and leadership roles, which typically come with higher pay.
Bias and Discrimination: Gender biases, both conscious and unconscious, continue to influence hiring, pay, and promotion decisions. Some studies have shown that women are paid less than men for doing the same job, particularly in senior roles.
Pay Gap by Age:
The gender pay gap tends to widen with age. Younger women and men generally experience a smaller gap, but as people progress in their careers, women often fall behind, partly due to factors like childcare and career interruptions.
Measures to Close the Gap:
Mandatory Reporting: Since 2017, UK employers with 250 or more employees have been legally required to publish gender pay gap data annually. This includes details on the median and mean gender pay gap, the proportion of men and women in different pay quartiles, and bonus payments.
Gender Equality Legislation: The UK has several laws designed to combat gender discrimination, such as the Equality Act 2010, which aims to ensure equal pay for equal work.
Policy and Cultural Shifts: Increasingly, companies are adopting policies aimed at increasing gender diversity, such as flexible working, parental leave policies, and targeted recruitment initiatives to balance the gender disparity in leadership.
Challenges in Closing the Gap:
While the gender pay gap has narrowed over the years, the pace of change is slow. Many experts argue that cultural change, such as breaking down gender stereotypes and rethinking traditional gender roles in the workplace, is needed to make real progress.
Addressing the gender pay gap also involves tackling broader societal issues, such as unequal access to affordable childcare and the distribution of unpaid care work.
The Gender Pay Gap by Sector:
Finance and Insurance: Historically one of the largest pay gaps, with men out-earning women by a significant margin.
Public Sector: The gap tends to be narrower in public sector roles, particularly in education, healthcare, and government.
Tech and Engineering: These fields typically have a high gender pay gap, as they are male-dominated, and women often occupy lower-paying roles within these sectors.
The Future Outlook:
Efforts to close the gender pay gap have gained momentum in recent years, with a focus on increasing transparency, encouraging women to enter high-paying industries, and challenging cultural biases. However, significant disparities remain, especially in senior leadership roles. Many experts believe that a combination of policy changes, shifts in workplace culture, and further investments in education and childcare are key to narrowing the gender pay gap in the long term.
In summary, while the gender pay gap in the UK has narrowed over the past few decades, significant challenges remain, particularly in terms of occupational segregation, career breaks, and unconscious bias. Measures like mandatory pay gap reporting and policy reforms are important steps, but closing the gap completely will likely require broader societal changes.
Please remember if you wish to discuss this further and how it relates to your workplace Gemma and Sarah are here to help.