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Gender pay gap: three-quarters of employers yet to analyse wages Gender pay gap: three-quarters of employers yet to analyse wages
(6 months later)
Three-quarters of employers have done nothing to analyse whether they are paying women as much as men, ahead of new rules that will force them to publish data on their gender pay gap.Three-quarters of employers have done nothing to analyse whether they are paying women as much as men, ahead of new rules that will force them to publish data on their gender pay gap.
A survey of 1,000 employers found that larger firms are most likely to have begun work on analysing whether they are paying women fairly.A survey of 1,000 employers found that larger firms are most likely to have begun work on analysing whether they are paying women fairly.
But the research by the Chartered Institute of Personnel and Development found that only one in four firms had performed any analysis at all.But the research by the Chartered Institute of Personnel and Development found that only one in four firms had performed any analysis at all.
The CIPD said this showed that companies were still uncertain about how to comply with the rules.The CIPD said this showed that companies were still uncertain about how to comply with the rules.
Related: Gender pay gap to remain for thousands, says Conservative MP
From April next year, companies with more than 25o employees will be required to identify how much male and female staff are paid, with league tables of the pay gap due to be published a year later.From April next year, companies with more than 25o employees will be required to identify how much male and female staff are paid, with league tables of the pay gap due to be published a year later.
They will have to reveal the information on their website and report the figures annually, with senior executives signing off on the numbers.They will have to reveal the information on their website and report the figures annually, with senior executives signing off on the numbers.
The legislation, introduced by women and equalities minister Nicky Morgan, is designed to address studies showing that women are still underpaid, four decades after the Equal Pay Act of 1970.The legislation, introduced by women and equalities minister Nicky Morgan, is designed to address studies showing that women are still underpaid, four decades after the Equal Pay Act of 1970.
Recent studies suggest that women earn an average of £300,000 less than men over their working life. But the CIPD said its study showed that league tables could prove counterproductive.Recent studies suggest that women earn an average of £300,000 less than men over their working life. But the CIPD said its study showed that league tables could prove counterproductive.
Dianah Worman, diversity adviser for the CIPD, said: “We’re not convinced that the proposals to publish pay gap league tables across economic sectors will be helpful in levering systemic change.”Dianah Worman, diversity adviser for the CIPD, said: “We’re not convinced that the proposals to publish pay gap league tables across economic sectors will be helpful in levering systemic change.”
She warned that league tables could create a “self-fulfilling prophecy” if women shy away from industries where the data shows they already underrepresented.She warned that league tables could create a “self-fulfilling prophecy” if women shy away from industries where the data shows they already underrepresented.
“One of the problems is that people have to see the advantages of doing it. If you put a threat behind it that will expose weaknesses, people might draw their horns in and not come clean.“One of the problems is that people have to see the advantages of doing it. If you put a threat behind it that will expose weaknesses, people might draw their horns in and not come clean.
“If we want to encourage positive change, you need people to be authentic and honest. If being honest could expose you to a league table that puts people off from working in that sector, it has the opposite effect to what’s intended.”“If we want to encourage positive change, you need people to be authentic and honest. If being honest could expose you to a league table that puts people off from working in that sector, it has the opposite effect to what’s intended.”
Related: Why don’t more women ask for a pay rise?
The notion of league tables has also met with criticism from business lobby group the Confederation of British Industry.The notion of league tables has also met with criticism from business lobby group the Confederation of British Industry.
Director general Carolyn Fairbairn said that to “name and shame” firms was unfair because it failed to take into account factors that might skew figures, such as difference between the sort of staff who work in different sectors.Director general Carolyn Fairbairn said that to “name and shame” firms was unfair because it failed to take into account factors that might skew figures, such as difference between the sort of staff who work in different sectors.
Kamaljeet Jandu, equality officer of the GMB union, said: “The campaign for equal pay between men and women has included picketing, demonstrations, legal challenges, individual cases, commissions, task forces, new policies, increased women on boards, T-shirts and a Hollywood film. Yet little has changed for women.”Kamaljeet Jandu, equality officer of the GMB union, said: “The campaign for equal pay between men and women has included picketing, demonstrations, legal challenges, individual cases, commissions, task forces, new policies, increased women on boards, T-shirts and a Hollywood film. Yet little has changed for women.”
The UK is ranked 18th out of 145 countries for gender equality in the workplace, in a table topped by Iceland, with Egypt in last place.The UK is ranked 18th out of 145 countries for gender equality in the workplace, in a table topped by Iceland, with Egypt in last place.
A report by former trade minister Lord Davies found that gender quotas were “unwarranted” but called on companies to install women in one third of boardroom roles by 2020.A report by former trade minister Lord Davies found that gender quotas were “unwarranted” but called on companies to install women in one third of boardroom roles by 2020.
Davies called on companies to even up the balance in senior roles after FTSE 100 firms met a voluntary target of 25%.Davies called on companies to even up the balance in senior roles after FTSE 100 firms met a voluntary target of 25%.