Aspire Cambridge have put together some vital information regarding pay equality and the Gender Pay Gap – a problem that has actually been illegal for over 45 years!
What is the Gender Pay Gap and what are the causes?
Today, there is still a clear gap in wages between men and women. The government have, over recent years, shown commitment to ensuring this gap is eliminated in the future.
According to the Equal Pay Portal, in April 2016 the gender pay gap (for median earnings) for full-time employees was 9.4 per cent, down from 9.6 per cent in 2015. If part time employees are included, in 1997, when the first survey was conducted, the gap was 27.5 per cent and in 2016 the gap was reported to be 18.1 per cent.
The government has stated that the causes of the Gender Pay Gap include:
- A higher proportion of women choosing occupations that offer less financial reward (e.g. administration). Many high paying sectors are disproportionately made up of male workers (e.g. information and communications technology).
- A much higher proportion of women work part-time and part-time workers earn less than their full-time counterparts on average.
- Women are still less likely to progress up the career ladder into high paying senior roles.
ACAS have provided some key points to consider;
- An employer must comply with the regulations for any year where they have had a ‘headcount’ of 250 or more employees from 5 April 2017, but employers of all sizes should consider the advantages.
- A wider definition of who counts as an employee is taken from the Equality Act 2010. This means that workers are included, as well as some self-employed people. Agency workers are included, but counted by the agency providing them.
- Gender pay reporting is a different requirement to carrying out an equal pay audit.
- There are six calculations to carry out, and the results must be published on the employer’s website and a government website within 12 months. They must be confirmed by an appropriate person, such as a chief executive.
- Employers have the option to provide a narrative with their calculations. This should generally explain the reasons for the results and give details about actions that are being taken to reduce or eliminate the gender pay gap.
What else is the Government doing to close the gap?
As well as requiring large employers to publish their gender pay gap and gender bonus gap the Government is also taking the following action to close the gap:
- Offering 30 hours of free childcare for working families with 3 and 4 year-olds; and
- Encouraging girls to consider a wider range of careers, including in those higher paying sectors traditionally dominated by men.
The government has already:
- Extended the right to request flexible working to all employees;
- Introduced shared parental leave; and
- Commissioned a review to look at how we can remove the barriers preventing women getting to the top of their careers.
Headquartered in Cambridge with regional presence in Kettering and Milton Keynes, Aspire Cambridge provide cost effective Recruitment and HR solutions to an impressive portfolio of customers spanning the UK and Europe. Working with a diverse collection of industries from start-ups to blue chip companies covering a vast range of sectors. Aspire Cambridge has an unrivalled knowledge of the jobs marketplace so it’s no wonder that they hold an impressive track record of exceeding client and candidate expectations.
How do they do it? By “Placing People First”.
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