The government now requires British companies with more than 250 employees to publish their gender pay gap data, but this will not happen in 2020 because of the coronavirus pandemic. Financial journalist and author of Money: A User’s Guide, Laura Whateley, adds that implementing shared parental leave is key if we are to combat the gender pay gap. Research shows that the gender wage gap can be affected by several considerations, including when women: choose or need to leave and re-enter the workforce in order to meet family care-giving responsibilities, resulting in a loss of seniority, advancement opportunities and wages or because they are more likely than men to work part-time due to these responsibilities; encounter occupational segregation in historically undervalued and low-paying jobs, such as childcare and clerical work, where female-dominated jobs are valued less even when they involve the same (or greater) skills; were historically considered to have lower levels of education. Companies employing fewer people than this are not legally required to report their gender pay gaps, but some smaller firms have started to do so in the name of transparency. This is becoming less of a factor as more women graduate from all levels of education, although the gender wage gap exists even for women with higher levels of education; are less likely to work in unionized environments; are often underrepresented in leadership positions; encounter discrimination or 'unconscious bias' in the hiring, promotion and compensation practices of their workplace. the motherhood penalty, the motherhood gap refers to the disadvantages that many women face in the workplace after having children. The gap can be measured in various ways, but the most common method is to look at full–time, full year wages. It’ll pay off in the long term and lead to better retention rates.”. It is also possible to measure the gender wage gap on the basis of hourly wages. And for many organisations, this means moving away from behaviours that stifle diversity.”. You can find out if your company is reporting its gender pay gap by asking someone in your human resources department. Other ways of calculating the gender wage gap include the comparison of annual earnings for both full- and part-time workers and comparing the hourly wages for full- and part-time workers. Lack of sanctions ‘makes a mockery’ of gender pay gap reports, the ONS’s latest Annual Survey of Hours and Earnings (ASHE), Equality and Human Rights Commission (EHRC). “Yes, there will be local laws and cultural aspects that individuals in your organisation hold dear, but you must set the ‘laws’ as a company and what it means to be at your organisation. The median gender pay gap is calculated by listing all male and female employees’ wages from highest to lowest and comparing the number that sits in the middle for each gender. In 1987, when the Pay Equity Act was passed, the gender wage gap was 36%. While some employers might be paying men and women differently for performing the same role or “work of equivalent value”, this is an issue of equal pay. Also known as the motherhood penalty, the motherhood gap refers to the disadvantages that many women face in the workplace after having children. We’ll have a new commenting experience online soon. Confusions surrounding the pay gap are rife, however, with many conflating it with equal pay and others denying its existence completely. While it can be measured different ways, the data are clear: women are still paid much less relative to men (about 83 cents per dollar, by our measure), and progress on closing the gap has stalled. “Our education system continues to influence gender norms that lead girls into lower paying jobs that are less valued,” they explain. For that, they need to know what their colleagues earn. Its main recommendations are as follows: Alexandra Anders, talent director at human capital management software company Cornerstone OnDemand, explains that closing the gender pay gap is primarily about building and maintaining a more diverse workforce. This means that for every $1.00 earned by a male worker, a female worker earns 74 cents. When talking about the gender pay gap people tend to talk about the median figure rather than the mean. This coincides with an increase in part-time working. Last modified on Thu 7 Mar 2019 11.32 EST. It’s a measure of inequality and captures a concept that is broader than the concept of equal pay for equal work. Gallery: The real retirement ages of workers around the world revealed (Lovemoney). “We know from our equal pay advice service that it is still happening,” Smethers explains. It is also possible to measure the gender wage gap on the basis of hourly wages. Organisations must also reveal the proportion of men and women who receive financial bonuses. Is Following a Low Carb Diet a Safe Way to Lose Weight? So the gap in economics, for example, is the difference between men and women when it comes to salaries, the number of leaders and participation in the workplace. | Site Map Please turn on JavaScript and try again. Part human, part machine: is Apple turning us all into cyborgs? The most recent Statistics Canada data (2011) shows that the gender wage gap in Ontario is 26% for full–time, full–year workers. Lorry drivers stuck in miles of M20 queues as border controls tested, New travel website offers carbon labelling for UK breaks, 'My diet used to be awful' Iskra Lawrence reveals her eating disorder, After bitter delay, Biden transition kicks into gear, Justin Trudeau duped by Russian pranksters posing as Greta Thunberg who tell him to ‘leave Nato’, The Weeknd attacks 'corrupt' Recording Academy after Grammys snub, Princess Diana’s style evolution, from Sloane Ranger to fashion renegade, Four Liverpool players nominated for Fifa Best award, Disney releasing Baby Yoda and egg Funko POP! Organisations are also required to publish the breakdown of men and women in different pay quartiles and details of the proportion of men and women in the company who receive bonuses. The gender pay gap is a high-level indicator of the difference between women and men’s earnings. pic.twitter.com/JeQeUrwK82. Based on 2017 trends, the overall global gender gap can be closed in 100 years across the 106 countries studied since the inception of the Index (compared to the projection of 83 years in 2016). “There’s work to be done with training managers who may have previously worked in a male-dominated team,” Anders tells The Independent. The gender pay gap (or the gender wage gap) is a metric that tells us the difference in pay (or wages, or income) between women and men. “For example, if women are mainly at lower-paid levels in the organisation, the employer might want to develop a positive action plan to encourage and support women to apply for more senior roles,” they suggest. While the cause of a pay gap can differ between companies, publishing and monitoring pay gaps can help employers identify reasons for their gap and should help them develop action plans to tackle the causes, the spokesperson tells. A negative 5% gender pay gap would mean women earned an average of 5% more than men per hour. | Contact Us Most employers say they don’t have an issue – but unless they have conducted an audit and set up a transparent pay framework, how would they know for sure?”. It is illegal to pay men and women different amounts for the same work, however that is not what gender pay gap reporting is set up to measure. The gender wage gap is a measure of pay disparity between men and women. Thus, in the fourteen years from 1980 to 1994, 35 percent of the preexisting gender gap in pay was eliminated. Equal pay has been a legal requirement since the Equal Pay Act was introduced in 1970. “But this has a knock-on effect on other things, too, like women’s pensions. 2 Experts have calculated this gap in a multitude of ways, but … The gender pension gap is even bigger than the gender pay gap because money that women don’t pay into their pensions while they’re off work caring for children, or while they are earning less to begin with, compounds over time.”, 'I lost two stone and developed mild PTSD during the tribunal', Women in Berlin to receive public transport discount, Nearly half of American men think gender pay gap is ‘made up’. “Many companies still offer women more generous maternity packages than they do shared parental leave packages for men, so it makes more sense for the woman to take time off for childcare,” she tells The Independent.

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