Gender pay gap reporting needs to be backed up with legislation if we really want to level the playing field
Now in its third year, there’s a danger that we are becoming desensitised to some fairly appalling figures
Compulsory gender pay gap reporting was launched with a bang. It led to some very red faces at some very big and prestigious employers in its first year.
Sadly, as is often the case, the bang has turned into a bit of whimper.
Sure, sure, there’s a rather big news story that’s dominating, well, everything at the moment.
But, with the exercise now in its third year, I think this would still have happened.
The trouble with the repetition of appalling statistics is that it normalises them. It makes the appalling seem mundane.
Progress towards the goal of equality, post the introduction of the measure, has been fitful at best. Lately it seems to have stalled. The two aren’t unconnected.
What’s that? HSBC posted an overall pay gap of 47.8 per cent. Tsk tsk. Bad form that. Now then, what’s new out on Netflix this month?
According to the BBC, among financial and insurance firms reporting, the gap had actually risen to 23.1 per cent, from 22.2 per cent, when HSBC was sent to the back of the class.
Clearly more is required to effect meaningful change. So what next?
There are plenty of steps that could be taken. They’re not all that difficult, and with a bit of legislative will they could be effected.
When I talked to Mary-Ann Stephenson, director the Women’s Budget Group, she mentioned measures to improve the right to flexible working. Granting shared parental leave was another suggestion. She also mentioned salary banding, so people aren’t left to negotiate their own deals.
The latter obviously rewards people who are good at negotiating with their bosses rather than those who are good at their jobs.
Men tend to be more willing to do this. And they seem to fare better when they make a fuss. They don’t run the risk of being seen as “pushy” or a “problem” if they march into the CEO’s office to demand more cash.
The Fawcett Society is, meanwhile, currently trying to get a bill through Parliament that would enable female employees to see what males colleagues earn if they suspect they are being discriminated against.
This is another idea with potential because it could, in theory, save them from having to take cases to employment tribunals, which is risky, potentially very expensive and which can rebound on those forced down the route.
The measure might open the door to them being able to favourably resolve issues and keep their jobs.
It has been introduced as a private members bill in the House of Lords, but such bills require government support if they’re to get anywhere. There’s lobbying going on to that end.
Another route with potential is amending the current employment bill.
I’d like to see pay gap reporting extended to cover black and minority ethnic and disabled workers (of which I am one). Were this to happen, it could serve to put the spotlight back on gender pay reporting, and to reignite the debate in the process.
But it’s clear that reporting will only get you so far when it comes to dealing with problems in the UK labour market.
Employers aren’t cleaning up their houses as was hoped. It’s time to force their hands.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments