The gender pay gap has regressed for the first time since 2013. This Equal Pay Day, three experts weigh in on how organisations can take positive action.
Since mandatory gender pay gap reporting began in 2017, we’ve seen slow progress towards narrowing the pay differential between men and women. Even during COVID-19 lockdowns, which had an unequal impact on women in the workforce, slight gains were made.
However, today’s Equal Pay Day – the day where women effectively stop earning due to the gender pay gap – falls 41 days short of the end of year and two days earlier than in 2023. And, most concerningly, it represents the first time the gender pay gap has widened in over a decade.
“It’s disheartening to note that the UK’s mean gender pay gap has widened to 11.3% this year,” said Lindsay Gallard, CPO at Six Degrees. “Whilst many organisations experience fluctuations in their employee composition, the overall trend has been one of a narrowing pay gap. This year marks the first increase since 2013, underscoring the need for action and continued collective vigilance.”
“Despite years of slow progress (but progress nonetheless), the widening gap highlights the systemic challenges that persist in achieving pay equity. Without our collective commitment to changing things for the better, there is too great a risk that hard-won gains will be eroded.”
‘Clearly more needs to be done to address the matter head on,” agrees Becky Wallace, Chief People Officer at LearnUpon. “To do so, organisations need to implement company-wide conversations and initiatives to reduce the pay gap. This will be crucial to building an inclusive culture that young women can excel in.”
But how?
Often the first challenge is getting started: understanding where the organisation is on their pay gap journey and identifying opportunities for growth.
Alex Pusenjak, VP People and Culture at Fluent Commerce, believes: “The first step to ensuring gender and pay equity in your organisation is to educate your leadership team on what it is and why it’s important, before you get to the ‘how’.
“It is really important to make the ‘business case’ for DE&I so that it is ‘baked into everything’ from the beginning. That way the accountability lies with everyone, rather than trying to create a program and implementing it on your own.”
He believes once you’ve done that, you must get started right away. “What helps you do this is to take a barometer reading of where the organisation is in relation to DE&I. Employee engagement surveys are a great way to do this,” he advises.
LearnUpon’s Wallace adds that it’s important to recognise it’s not a one-size-fits-all approach. “Each organisation may have different difficulties when it comes to addressing the gender pay gap and championing women to progress. To find organisation specific shortcomings and solutions, HR teams should be equipped to analyse potential pay gaps within the organisation and produce reports, ensuring tailored actions are taken to stay on top of pay equity.”
Taking action
Conscious, concerted effort is required to tackle the gender pay gap head on. Learning and development is a key driver in creating the cultural shift needed for meaningful progress, Wallace continues. “Negotiation training and leadership development programmes should be a part of development programmes aimed at women in the workplace. This will help empower women to advocate for themselves – helping them advance their careers and move to higher-paying roles.”
“We believe that transparent policies, robust DEI initiatives and tailored workforce management are crucial steps towards closing this gap,” added Gallard. “Implementing comprehensive pay audits, fostering an inclusive culture, and supporting flexible working arrangements are just some of the ways we can create a more equitable society where everyone has the opportunity to thrive.”
“I’d recommend setting up a Diversity, Equity & Inclusion Employee Resource Group that is tasked with proactively working on positive initiatives to create lasting and meaningful change,” furthers Pusenjak.
“Ours at Fluent Commerce have successfully implemented a range of measures including our Work 180 employer endorsement, an education campaign about global pronouns and the promotion of women across the business.”
He adds, “Diversity, Equity and Inclusion has to be baked into all areas of your company. A company culture encouraging diversity means all employees are more likely to be offered flexible work schedules – a necessity when juggling childcare or looking after elderly parents.”
Indeed, as big-name UK companies such as Santander, JD Sports and Boots have back-tracked on remote work this year, it’s important to consider how this could disproportionately impact women in the workplace who rely on flexibility.
Taking stock of how company-wide measures impact groups of people should be the centre of boardroom discussions to ensure Equal Pay Day doesn’t continue to creep earlier in the year.