Gender pay gap widens

The latest gender pay gap statistics should be shocking to everyone reading them. Progress appears to be reversing before our eyes. We need to ask what is causing this? McKinsey reported earlier this month that women are leaving jobs in record numbers searching for greater flexibility, inclusivity and meaningful support for their wellbeing. In the same month, however, we saw former PM Liz Truss remove what she called red-tape for SME businesses with fewer than 500 employees, exempting them from the requirement to report on the gender pay gap. There is a saying that what gets measured, gets done, which makes this move even more depressing. The news today focuses on the disparity in equal pay but we also need to talk about childcare costs, parental leave and return to work policies as part of a culture of equality and inclusivity. The gender pay gap is just the tip of the iceberg and the workplace steamliner heading in its direction needs to wake up to the danger.

It is disappointing to see that the gender pay gap is widening. Unfortunately, the cost-of-living crisis will impact women greater because more women work below the living wage and tend to work in sectors that have been hit by inflationary pressures such as care and hospitality. There is a school of thought that gender pay gap reporting is a tick-box exercise that has little value. Obtaining gender pay gap data, however, is the first step to making change. If you do not know where the problem is, you cannot expect to solve it. The next step is to take action. Are companies recruiting using the same networks? Why not try to recruit from women networking groups such as women in tech or women in construction? Are companies using employee forums to ensure that women have a voice in their businesses? Do companies have policies in place that support women, such as menopause at work? Implementing these steps cost nothing. It is a question of leadership and putting this issue higher up on companies' agendas.

I think we need to be careful how we read this data, Firstly these figures are a measure across all jobs in the UK, not of the difference in pay between men and women for doing the same job. This is a crucial element and without this mentioned it can give totally the wrong impression. The issue that I see regularly in organisations, which needs addressing further, is when higher earners experience a much larger difference in hourly pay between the sexes compared with lower paid employees. Women are usually the ones who require a more flexible working environment and yet in my view often deliver just as much value, if not more, than their male counterparts, sometimes in half the time. However, in comparison women are reluctant to discuss salary and ask for raises as often. It's evidenced when women apply for jobs. They only apply if they know they tick all the boxes, while men are more likely to take a risk and apply if they only tick half. On a positive note, it looks like females in the younger generation are more confident to address pay, as the stats show over time the gender pay gap is slowly decreasing in the under 40s.

This data isn't surprising, as many of the older members of the workforce correlates with senior management representation, which is overwhelmingly male. The gender pay gap emerges at the critical 'broken rung', with too many women either dropping out of the workforce entirely or not being supported in their careers at middle management. In addition, the age group 40 to 49 is typically the onset of menopause. 1 in 4 women experiencing menopause are considering leaving the workforce and 10% actually do. Since this is the fastest growing UK workforce demographic and 10% are leaving, the compound effect is the gender pay gap data we're seeing today.

No one should be left wondering if they are being paid the same as their counterparts. We need to break the taboo around salaries. The persistent lack of pay transparency puts women at a disadvantage and is fuelling the gender pay gap. Glassdoor research shows that women are less likely than men to negotiate their pay while interviewing. And 1 in 2 women admit they lack the confidence to ask for a pay rise. The latest gender pay gap figures show there is much more work to be done. Companies need to embrace salary transparency and hold themselves accountable for what they pay each worker. And with hiring set to remain challenging for the year ahead, being open about pay will make attracting talent easier. Three-quarters (75%) of workers would be more likely to apply for a job with a salary range displayed in the listing. Without open discussion and transparency around salaries, it will be near impossible to achieve equality in the workplace.

It is a great shame to hear the gender pay gap remaining too far adrift, particularly for those who have been in work for many decades already. Sadly, at the current rate, it will take more than a couple of generations to reach equilibrium. There should be a continued focus on destigmatising the conversation regarding salaries and equal pay and seeing greater representation across all roles in the workforce. The silver lining is the green shoots of fairer pay for those under 40. Hopefully, the next generation of senior managers will expedite the process of creating a fairer workplace for all.

A key time that the gender pay gap is exacerbated is around the time of having a family. In order to reduce the gender pay gap, we need to normalise caring responsibilities being shared. Our shared parental leave policies are simply not fit for purpose. We need to create parent friendly work spaces regardless of gender and encourage shared responsibility of children. We can start to challenge gender stereotypes in the home by making sure that businesses are supporting parents to help end the cycle.

Whilst the majority of businesses within the UK operate on a cost and budget model, there will never be gender parity on pay. Neither will we achieve true and positive social mobility, and nor will those businesses be inclusive or sustainable. Whilst fixed costs rule the day in organisations, they will always struggle to bring people who have had 'time out' of the rat race to care or give birth, a fair route back in, because they lack the agility and working models to achieve it. Outcome based job descriptions are the only way businesses in the UK can become sustainable, inclusive, flexible and engender social mobility and finally close the gender pay gaps that exist across their business in a fair and proactive way.