Tackling the gender pay gap. How to get fair remuneration for the value you bring

The gender pay gap remains a significant issue in the modern workforce, reflecting the persistent disparity in average earnings between men and women. Understanding and addressing this gap is crucial for achieving fair remuneration for the value each individual brings to their profession. In this blog Tile Hill consultant Helen Alwell explores the nuances of the gender pay gap and offers strategies to ensure equitable pay.

What is the Gender Pay Gap?
The gender pay gap is the difference between the average earnings of men and women, expressed as a percentage of men's average earnings. This metric is a vital indicator of the broader economic inequality between genders. As of April 2023, the gender pay gap for full-time employees in the UK stands at 7.7%, meaning women earn 92.3 pence for every pound earned by men. For all employees, the gap is wider at 14.3%.

Trends and Insights
Over the past decade, the gender pay gap has been gradually decreasing. Among full-time employees, it has fallen by approximately a quarter. However, recent data shows slight fluctuations, with the gap increasing to 7.7% in 2023 from 7.6% in 2022. This is still an improvement compared to the pre-pandemic gap of 9.0% in 2019. For part-time employees, the gap remains consistent at negative 3.3%, indicating that women in part-time roles earn more on average than their male counterparts. This long-term upward trend has persisted since 2015.

Recent Trend Developments
Recent studies, such as those by the job search engine Adzuna, highlight alarming trends. As of March 2024, the UK's gender pay gap widened to 35 per cent, the highest in two years. Women in traditionally male-dominated sectors like engineering and construction face the most significant disparities, earning 65 pence for every pound earned by men. This stark increase underscores the ongoing occupational segregation and deeply rooted societal biases that perpetuate the gender pay gap.

Age and Occupational Variations
A detailed analysis reveals significant differences in the gender pay gap across various age groups and occupations. For employees under 40, the gap for full-time workers is relatively low, at 4.7% or below. However, for those aged 40 and over, the gap increases substantially, particularly in higher-paid roles such as managers, directors, and senior officials. For instance, the gap for full-time employees aged 60 and over is the largest, rising from 13.5% in 2022 to 14.2% in 2023.

Occupational differences also play a crucial role. The gender pay gap in skilled trades remains the largest among major occupational groups, though it has seen the most significant decrease in recent years, according to  Pew Research Center. Despite these improvements, the gap for higher earners remains more pronounced compared to lower-paid employees. This indicates that while progress is being made, more effort is needed to address disparities in top-tier positions.

Effective Strategies
Employers have a vital role to play in addressing the pay gap. However, it is also important to consider what you can do as a prospective employee to ensure you are paid fairly for the role you are taking on. 

• Advocate for Pay Transparency: Seek out employers that disclose salary ranges and conduct regular pay audits. Transparency in pay structures would suggest an employer is striving for equal and fair compensation.
• Attend Negotiation Training Workshops: Empower yourself by attending negotiation training workshops. These can equip you with the skills to confidently discuss and negotiate your salary.
• Set Personal Career Goals and Monitor Progress: Set clear personal targets for your career development and regularly monitor your progress. Use performance reviews and feedback sessions to discuss and track these goals.
• Engage in Mentorship and Sponsorship Programs: Look for opportunities to join mentorship and sponsorship programs within your industry. These programs can provide valuable guidance and support for career advancement.
• Leverage Flexible Working Policies: Advocate for and take advantage of flexible working policies. In the UK, work-life balance is a significant factor in employment decisions. According to the Office for National Statistics, 31% of UK employees feel they do not have a good work-life balance, and 50% of those who switched jobs did so to achieve better work-life balance. 
• Support and Promote Diverse Hiring Practices: Encourage and support diverse hiring practices in your workplace. This can help create a more inclusive environment and reduce biases in recruitment and promotions.
• Participate in Training on Unconscious Bias: Take part in company-wide training on unconscious bias. Understanding and addressing these biases can help foster a more equitable workplace.
• Stay Informed and Proactive: Keep informed about the latest research and policies related to gender pay equity. Being knowledgeable can help you advocate for yourself and others more effectively.

Moving Forward
At Tile Hill, we believe that addressing the gender pay gap requires a multifaceted approach. Employers must commit to ensuring equal pay and increasing female representation in senior leadership roles. Transparency in pay structures and proactive measures to support women's career advancement are crucial. By fostering an inclusive and equitable workplace, organisations can help close the gender pay gap and ensure fair remuneration for all employees.

To further enhance workplace equity, below are several new reporting changes to EDI legislation the Government has said it intends to introduce:

• Ethnicity and Disability Pay Gap Reporting: Employers with more than 250 employees will need to monitor and report on ethnicity and disability pay gaps, mirroring the current gender pay gap reporting rules. They must publish an action plan outlining how they will address and close any identified pay gaps.
• Protection in Pregnancy: Labour plans to extend the period of protection from pregnancy discrimination, making it unlawful to dismiss a pregnant individual for up to six months from when they return from maternity leave, except in specific circumstances.
• Menopause Plans: Larger employers – those with 250 employees or more – will be required to have a documented menopause plan in place.

In conclusion, while progress has been made, the journey to closing the gender pay gap is ongoing. By understanding the underlying causes and taking decisive action, we can move towards a future where everyone is fairly compensated for their contributions, regardless of gender. Together, we can explore strategies to achieve pay equity in your career journey.