Thursday, 06 April 2017 12:34

What is the Gender Pay Gap all about?

What is the gender pay gap all about?

The gender pay gap is an international problem impacting employees all over the world from Hollywood stars to shop floor workers. Remember Jennifer Lawrence's essay where she questioned if she was at fault for not fighting hard enough to earn the same salary and benefits as her co-star Bradley Cooper in American Hustle? He earned double her salary in the hit film. This same issue goes on in all levels of jobs in all sectors today.


In the UK new regulations comes into force today (6th April 2016) which will require employers with 250 employees or more to complete and publish data showing the gender pay gap within their business. The first deadline for this information is 4th April 2018 and is a legal requirement for businesses to carry out, but unlike the equal pay gap, will not have such severe implications or penalties for the business.


What is the difference between the gender pay gap and the equal pay gap?

The gender pay gap is a difference in the average pay of men and women in the workforce, irrespective of their roles or seniority. The equal pay gap shows the differences in pay between men and women who carry out the same job, similar job or role of an equal value.


Why should we monitor the gender pay gap?

The current national gender pay gap as reported by the Office of National Statistics shows that men earn 18.1% more each year than women. This has a significant impact on women’s pension contributions as over their career they can earn up £47,000 less than their male counterparts as analysed by Zurich Insurance Group. This in turn can impact upon employee engagement, motivation and therefore productivity of the employee and in turn the business.


The main reasons for the gender pay gap?

Men are more likely to be in senior roles and therefore earn a higher salary than women as the majority of the female workforce work in lower paid sectors such as administration and caring. Women are also more likely to work part time or have more flexible roles due to family commitments which will also impact on their salary, pension and rewards.


Information which must be included to be published:

  • Average gender pay gap as a mean average

  • Average gender pay gap as a median average

  • Average bonus gender pay gap as a mean average

  • Average bonus gender pay gap as a median average

  • Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment

  • Proportion of males and females when divided into four groups ordered from lowest to highest pay.


This information will be made available online to the employer, employees and the general public allowing for greater public scrutiny. These new regulations will allow a true insight into the gender pay gap and allow comparisons to made to encourage improvements and celebrate successes. This will also allow both employers and employees to see the gap within their business and work together towards improvements.


Although closing the gender pay gap for good is far off, this is a big step in the right direction.  SCRSolutions Ltd feel that all sizes of businesses would benefit from conducting a gender pay gap analysis to highlight any potential area of inequality.  It will also help to identify potential areas of risk as and allow for plans to be put in place as your business grows, therefore avoiding any issues when the process becomes a legal requirement. 


If you feel your business could benefit from support in meeting the criteria of the new legislation, or would like to implement this policy before you are legislatively required to do so, please contact us on 01382 250333, or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..  Our CIPD consultants are available to support you. 


Published in HR Blog...