Path 3 Created with Sketch.
Banner Default Image

Insight

Back to all insights

MIND THE GENDER PAY GAP: WHAT BUSINESSES NEED TO KNOW

Author: Richard Snarey

Published date: 2019/07

Blank

​In July, it was reported that the BBC gender pay gap for fixed hourly pay at March 2019 was 6.8 per cent, a decrease from the 10.7 per cent the corporation reported in 2017. While the BBC still has some way to go, it’s still ahead of the UK’s national gender pay gap average of 17.9 per cent, which has been attributed to the fact that more men are likely to hold senior positions than women.

Since gender pay reporting legislation was introduced in 2017, employers with 250 or more employees are required to publish statutory calculations every year to show how large the pay gap is between their male and female employees. This has resulted in many companies taking direct action to even the playing field for men and women in the workplace.

In this blog, the PRS team cuts through the latest headlines to pull out all of the essential information you need to know.

Cold, Hard Facts

It was reported in April 2019 that the gap has widened since 2017. From the 10,000 organisations and businesses required to release the information, 78 per cent showed a gender pay gap in favour of men.

In March, the Trades Union Congress (TUC) published an analysis that revealed a 17.9 per cent difference between men and women, meaning the average woman works “for free” for the first two months of the year due to the gap.

Despite these somewhat disappointing figures, it’s worth noting that this is only the second year that the results have been published. Furthermore, after these results were shared, many organisations went into PR overdrive to show what they are actively doing to fix the problem.

Reporting

A company with more than 250 employees is legally obliged to report full gender pay gap data featuring six calculations, including:

  • average gender pay gap as a mean average

  • average gender pay gap as a median average

  • average bonus gender pay gap as a mean average

  • average bonus gender pay gap as a median average

  • proportion of males and females receiving a bonus payment

  • proportion of males and females in each pay quartile

A mean is calculated as the sum of individual units of data, divided by the number of individual units. A median is calculated as identifying the unit number that is the midpoint in a series of data.

Although small employers with fewer than 250 employees are not duty-bound to report, you’re still able to submit one or measure your pay gap internally to find out if you have any issues.

Advice For Businesses

If you’ve identified a gender pay gap in your business, you can start to solve the issue by asking the following questions:

  • Would employing more women in senior roles, and more men in junior positions help?

  • Do your job adverts use gender-neutral language?

  • Do we need to implement a formal salary band structure?

  • Do our employment benefits appeal to women as well as men?

  • Do we have the resources to start closing the gap now? What do we need to do to get to this point?

When speaking about the BBC gender pay gap, the corporation’s Director-General Tony Hall’s comments echo through every organisation across the UK: “The task is not complete, we are not complacent, but we are well on our way.”

To fulfil your recruitment needs in a compliant and effective manner, get in touch with the experts at PRS today.