So what’s happening with the Gender Pay Gap?

Nick Goddard

Gender Pay Gap Reporting in the UK was suspended last year due to Covid-19 but is looming on the Corporate HR Agenda with UK Companies required to report by 4 April (1).

However, this will be calculated for data from 5 April last year so will not fully represent the impact of the pandemic which many business and social commentators think has disproportionately affected women at work more than men, partly because of the greater impact of childcare and home schooling on working mothers (2).

Also, the BLM movement has moved the inequality debate into the business world and put the under representation of people of colour at senior level onto the corporate agenda. We had seen some evidence of an increased focus on this before the events of last summer but it is now a much greater priority for many corporates.

New UK legislation

A new UK Bill started its passage through parliament in October 2020, with cross party support. The EPIC (Equal Pay Information and Claims) Bill seeks to increase transparency of equal pay and widen the obligations of companies through the expansion of gender pay gap reporting and the introduction of ethnicity pay reporting (3 & 4). Since gender pay gap reporting was introduced in 2017, there have been growing calls for a similar legislative regime to address the ethnicity pay gap although it is more emotive, nuanced and complex, with greater barriers around data collection.

Legislation would not be necessary in an ideal world but we firmly believe that Gender Pay Gap Reporting, along with other worthy initiatives, has increased corporate transparency, accountability and positive action by large companies and organisations. Acknowledging the problem alone does not bring about change though, it is about what organisations will actually do as a result.

While the gender pay gap in most organisations has improved in recent years and there are a number of influencing factors, the disparity in many companies is mainly influenced by the relatively lower number of women in more senior roles.

At ABSTRACT, we work with clients in the UK, Ireland and internationally. Ireland has not yet implemented gender pay legislation but well organised government supported initiatives like Balance For Better Business plus the good work of organisations like 30% Club Ireland (5&6) have significantly increased the focus and rallied corporate intent. In other countries where we work, change can feel slower and is being driven by society and corporate choice rather than government intervention.

So how can we help?

At ABSTRACT, we have been focused on this topic since 2013, when we conducted research with the Financial Times on the topic of Women in Business. This resulted in our ACCELERATE Programme, which continues to primarily support the career development of women.

Indeed, we believe that we can contribute to continuing progress best, directly through our work with our clients and our delegates. It’s increasingly clear that divergence of career opportunity happens early in careers and the more recent introduction of our AMBITION Programme focuses on those early on in their careers and first time managers.

While these programmes focus on developing career navigational skills and providing tools to participants, there is also an increasing spotlight on delegate selection for our learning and development programmes, ensuring there is good representation of women and under represented groups.

More widely, we are focusing on creating inclusive leaders who are strong and considerate and supporting the diversity of thought and respect for others through our critical thinking, leadership and managerial programmes. Helping to build modern businesses fit for today’s social objectives.

What’s next?

In 2021, our team shall continue to speak regularly at events and expert forums on this topic. Our NED, Sue Liburd MBE, has a special interest in assisting under-represented groups to achieve success - and is a recognised voice in the promotion of the importance and understanding of equality as a driver for business success. The men in our team are strong male allies and we believe men have a big part to play in supporting positive change.

In some ways it feels like we have come a long way since ABSTRACT first became focused on the topic of diversity and inclusion. But it’s also clear that there is still a long way to go. In 2021 and beyond, ABSTRACT will continue to fully participate and advocate for making the corporate world a better and fairer place.

References

(1) Gov.uk Gender Pay Gap Reporting https://www.gov.uk/government/collections/gender-pay-gap-reporting

(2) Covid has 'devastating' impact on gender equality https://www.bbc.co.uk/news/business-55002687

(3) MPs call for wider gender pay gap reporting https://www.bbc.co.uk/news/uk-politics-54570593

(4) Equal Pay (Information and Claims) Bill 2019-21 https://services.parliament.uk/bills/2019-21/equalpayinformationandclaims.html

(5) Balance for Better Business https://www.betterbalance.ie

(6) 30% Club Ireland https://30percentclub.org/about/chapters/ireland

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