On International Women’s Day, businesses across the UK headed to social media to celebrate and express gratitude towards the women in their workplace. Yet, following the gender pay gap reporting day, we are reminded that – despite the gender pay gap’s slow narrowing – women are still being paid less than men.
It’s 2022 and many questions about how we tackle gender equality remain. What is the gender pay gap? How can employers attract women to their businesses? And more importantly, what can they do to build an inclusive environment in which women will triumph?
What is the gender pay gap?
The gender pay gap is a measure that shows the difference in average earnings between women and men in the UK. In a bulletin released in October, the Office of National Statistics (ONS) estimated that the 2021/22 gender pay gap will increase to 15.4%, up from 14.9% in 2020/21. This shows great progress compared to 2002, when the gender pay gap stood at 26.9%. However, we still have a long way to go.
What is key to note is that the gender pay gap does not show differences in pay for comparable jobs. Unequal pay for men and women has been illegal for 45 years, but some people still don’t know this is the case. As it is legal for a company to pay different wages for the same or similar job, provided there are non-discriminatory material factors to justify the difference, it can get murky, to say the least.
According to our most recent survey*, we found that more men (29%) than women (22%) search for a company’s gender pay gap when thinking about applying for a role. This shows that pay equality in the workplace is just as important to men, as it is for women.
Clarity is critical here. Firstly, it is important to understand that ‘women’ isn’t a term for one singular ‘market’. Instead, it is made up of infinite characteristics, personalities and overlaps with other minority groups, and so must not be seen as a sum of one part.
Simply hiring a few more women and making a little room for them on the board doesn’t solve the problem. But there are measures you can take and behaviours you can change to become part of the solution.
Building cultures women will triumph in
Many companies are working harder than ever to recruit more women. But, how many understand what is needed to build an environment where women thrive? It is essential to educate yourself on the challenges women face in the workplace to understand and address their needs.
Although we are a long way from gender equality, you can take steps to help level the playing field. Here are a few things that your organisation can do:
1. Understand your business (and the people in it)
A critical first step is to look at your pay data to understand where exactly pay gaps lie and the size of them. This will give your business the best chance in making a positive change. It will also support you in creating a strategy that can help tackle failings and progress you as a unified business.
There isn’t an off-the-shelf strategy for improving gender pay and diversity in your business. Instead, a fluid, research-based process needs to happen to meet the needs of the people working for you – and those you want to bring on board.
Do your research and ask the people most affected – women – but all women, of all ages, races, sexual orientations, religions, economic statuses – because it is a complex issue. For a strategy to work, it needs a true and well-rounded view of what industries must address on the subject of gender from the people it affects the most.
After all, there is nothing worse than finding out a gender pay and equality programme is just the musings of a white middle-aged CisHet man sitting in a hammock on holiday. An exaggeration, maybe, but you get the idea… And if you don’t know how, or who to ask, get consultation and help. Your hiring strategy and employer brand will be better for it.
2. Be flexible
Our survey found that 50% of women are willing to change jobs to a lower salary for better flexibility – that’s 11% more than men. One of the reasons could be that women are more likely to face challenges surrounding balancing parenthood and working.
Options for flexible work arrangements can include having the option to work remotely, job sharing, or having flexible working hours. These are some ways to combat the challenges many women face in balancing their work-life and personal priorities.
Another example is exercising compassion and empathy to create a culture where women feel comfortable expressing their needs for flexibility. Be proactive by talking about your business’ flexibility around cases such as needing to take children to doctor’s appointments or wanting to spend more time at home during menopause. This is so women can feel comfortable communicating these issues if, and when, they occur.
Society has set a precedence for the family structure. This is reflective of parental leave in most workplaces. Assessing the parental leave package you offer can help women balance their work and parental responsibilities.
You can consider expanding the length of your maternity leave or increasing the compensation. This supports women with the choice of spending more time bonding with their children.
It is helpful to also consider how fair your parental leave options are for both parents. For example, if your paternity leave is significantly shorter than maternity leave, it may restrict women’s choices for getting back into work after having a child. This is because it leaves little options for men to stay at home as caregivers. This is especially important considering the maternity leave gap has been named one of the primary causes of the gender pay gap.
There is a myth that flexible working equals less work. However, when businesses focus on employees’ productivity and results rather than their time spent at the desk – this stigma can be debunked.
3. Provide inclusive leadership
Women currently make up a third of the executive team, corporate board, C-suite, or CEO positions in the UK. Not only does this lack of equality contribute to gender pay gaps, but it also means businesses are missing out on women’s talent, skills and perspectives that can drive effective business solutions.
The lack of women in leadership can be put down to various reasons. One of those is the stereotype that women who are leaders are seen as competent or liked, but not both.
Creating an environment that will bring more women into leadership, means breaking down barriers and being intentional and proactive to reach diversity goals. You can’t be what you can’t see. Showcasing the women you already have in leadership creates visibility for young, aspiring women professionals.
4. Understand what women want
As mentioned, there is more to consider when understanding the full scope of the challenges that women face in the workplace. Despite this, there are certain fundamentals that companies – no matter their size – must have in place, such as maternity leave (more than the legal minimum), adoption leave, menopause provisions and miscarriage leave.
Flexible working also needs to stop being seen as a perk or a ‘nice to have’ (arguably for all but with 70-75% of working mothers making up the parental flex market, it’s a big one). As a society, we need to move away from leaning on advocates such as Anna Whitehouse at Mother Pukka and Joeli Brearley from Pregnant Then Screwed, who champion women’s rights and flexibility in the workplace. We need to move towards feeling comfortable speaking about women’s issues on the ground and companies need to listen and act.
Additionally, women want professional development opportunities and expect to not have to fight every time to get them. They also want to know that their employer takes important issues such as race and discrimination seriously and are willing to take a stand and follow through with pledges, not just say them for a campaign’s sake.
5. Be transparent
After you have done the work, you may find you have unfavourable results. If your company is currently not where it needs to be, hold your hands up and pledge to do something about it – but make sure that you follow through.
Workers and society at large are generally more understanding and accepting of companies who openly recognise their failings and talk about how they plan on making improvements, as opposed to companies that attempt to sweep their failings under the carpet.
When it comes to those that look at a company’s Gender Pay Gap report before applying for a role, one-third (33%) of women said that discovering a company’s gender pay gap will not stop them from applying if the company also included details on how they plan on closing the disparity.
Just be transparent and honest about what needs to work. Publish your gender pay gap statistics and explain what you plan to do about any unfair disparities.
Achieving gender equality and making it last
Ultimately, a disparity in pay based on gender should not, and must not, be ‘a thing’. Yes, it’s slowly decreasing, but the stats are still pretty shocking in our modern society.
Times and attitudes are changing, but there are still many who believe women are just trying to ‘have it all’, and by pushing the equality ‘agenda’, the quality and value of their output are somehow diminished, which simply isn’t true. Gender equality doesn’t end with getting more women through the door of your business.
Your aims for gender equality should not only be present in your hiring process. They should be reflected in your work culture, pay and leadership. The appetite for change is huge, so the time has never been better than now for businesses that genuinely want to make positive changes.
* This online survey was conducted by Atomik Research and consisted of 2,008 adults in the UK. (69% identified as female and 31% identified as male). This survey took place between the 4th – 11th February 2022. Atomik Research is an independent creative market research agency that employs MRS-certified researchers and abides by the MRS code.
