#BetterForBalance, last year’s International Women’s day theme. Although international Women’s day was back in March, the battle of equality is one we continue to fight!
Over the last several decades women have worked tirelessly to break stereotypes, glass ceilings and constraints, yet gender inequality is still prevalent. When this year’s gender pay gap report was published, it found that hundreds of ‘big firms’ saw an increase in their gender pay gaps(gasps), that’s around 2 in 5 companies. I was surprised at this, especially considering there has been numerous campaigns and social events to minimize it.
But, why has there been an increase? Dharshini David, BBC’s economics correspondent suggests that as a result of an influx of female hires in junior positions the gap has widened and progressing them through the ranks could take years. I understand that this could be a contributing factor, but I am skeptical to it being the sole cause, aren’t you?
Yes, there has been a 121% increase in women within accounting and finance roles which is fantastic, but for every 10 men in senior roles there is only 1 woman!! Even more significant there is an average 21.5% gender pay gap. So, what the 121% increase really means is that MORE women are getting paid less than their male counter-part to do the same job.
Along with construction, finance as a sector has the largest gender pay gap. Does it come as much of a shock? No? We didn’t think so either. It’s no secret that finance has long been an industry monopolized by men, nonetheless it does not justify the vastness of the gap.
So, what does the 21.5% gender pay difference mean? In theory women work for FREE 1hour and 40 minuets each day. That totals to 57 days a year. Shocked? Even more jaw dropping a senior CFO role where the average salary in the UK is £106,980, a woman could be getting paid a staggering £23,000.70 less than her male counter-part. Think of what you could do with that amount of money.
Luckily, it’s not too late to rectify it. In fact, real women are taking real action to make themselves heard! Recently we saw Carrie Gracie resign from her position as China Editor at the BBC over equal pay, after the GPA report was released. For a company that claims to be ‘golden standard’ you would have expected it to be the last place to see the gender pay gap have such a large effect! The BBC has since said that it has now made “significant reforms”.
If you don’t know the gender pay gap in your business be keen to find out. Although you’re not legal obliged to report into .GOV if your company has 250 employees or less, it is something you should know and be aware of. Research supports the claim that diversity is not only economically beneficial but essential for the wellbeing of your staff.
Companies who invest in diversity and inclusion have a 57% better team collaboration and increase their staff retention by 19%, saving them around £11,000 a year. In this current skill short market finding new talent to replace staff is becoming increasingly difficult, so any way to retain staff need must be acted on!
Want to know if your salary is competitive or are you interested what you could be paid depending on your career? Or if you’re an employer wanting to know how you could be competitively playing your staff take a moment to fill in our Salary Survey!