Gender Pay Gap Explained
Gender pay gap figures reveal that 8 in 10 UK firms pay men more money than women. These figures state the average hourly wage for women is 9.7% less than male colleagues. Whilst this revelation might seem surprising in the modern world we live in, is it a true reflection of the situation? We look deeper into the facts of the gender pay gap, and if the comparison is accurate.
The measure of the hourly pay gap across a business does not necessarily address the gap in similar job roles, therefore the figures are not a giving a true representation of the situation. It also seems the data is relatively patchy. This is due to exemptions of high-level executives, partners, un-employed and low paid workers who the report did not include.
More than 1,500 UK companies have failed to report their gender pay gap figures
The Equalities and Human Rights Commission warned those firms that missed the deadline would have legal action taken against them. This failure to comply could result in penalties such as an unlimited fine. The stipulations set out were extremely clear; all companies with 250 employees or more must have provided the information required. This is just another reason the final figures released for the gender pay gap were not accurate.
The gender pay gap must not be confused with unequal pay, which would be against the law. Men and women, by law, with the same jobs must be paid the same wages. Gender pay gaps arise when there are more highly paid men than women in a business.
There are definite positives to come out of this data gathering exercise. It has provided an opportunity for employees to talk about pay and find out what colleagues earn. It has also made companies stand up and take note that pay is important, and any discrepancies will be uncovered.