The Gender Pay Gap

Equality & Diversity initiatives are designed to redress the balance where decades of inequality have led to high levels of disparity in the workplace. Gender Pay Gap reporting is no different and the Equality Act 2010 makes it a statutory duty for organisations with more than 250 employees to report on their gender pay gap, which looks to redress the long standing percentage difference between average hourly earnings for men and women. Currently, the national average mean gender pay gap is 17.9%, which indicates – on average – woman in the UK earn 17.9% less than men. In fact, the Guardian (April 2019) reported that a quarter of companies and public sector bodies have a pay gap of more than 20% in favour of men. However, according to the Financial Times (23 April 2019), Government policymakers hoped the transparency would shame large employers into taking swift action to narrow the difference between what they pay men and women.

What is the Gender Pay Gap?

The gender pay gap shows the difference between the average (mean or median) earnings of men and women. This is expressed as a percentage of men’s earnings e.g. women earn 15% less than men. Used to its full potential, gender pay gap reporting is a valuable tool for assessing levels of equality in the workplace, female and male participation, and how effectively talent is being maximised.

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

It’s worth noting that a gender pay gap isn’t the same as unequal pay. Equal pay – where men and women doing the same job should be paid the same – has been a legal requirement for nearly fifty years. Under the Equal Pay Act 1970, and more recently, the Equality Act 2010, it is unlawful to pay people unequally because they are a man or a woman. This applies to all employers, no matter how small.  As such, a company might have a gender pay gap if a majority of men are in top jobs, despite paying male and female employees the same amount for similar roles.

The gender pay gap shows the differences in the average pay between men and women. If a workplace has a particularly high gender pay gap, this can indicate there may be a number of issues to deal with, and the individual calculations may help to identify what those issues are. In some cases, the gender pay gap may include unlawful inequality in pay but this is not necessarily the case.

What is the Median pay gap?

The median pay gap is the difference in pay between the middle-ranking woman and the middle-ranking man.

If you place all the men and women working at a company into two lines in order of salary, the median pay gap will be the difference in salary between the woman in the middle of her line and the man in the middle of his.

What is the Mean pay gap?

The mean pay gap is the difference between a company’s total wage spend-per-woman and its total spend-per-man.

The number is calculated by taking the total wage bill for each and dividing it by the number of men and women employed by the organisation.

Why is there a Gender Pay Gap?

According to the BBC, there’s no one reason behind the gender pay gap – it’s a complex issue.

The Fawcett Society, a group which campaigns for equality, says caring responsibilities can play a big part. Women often care for young children or elderly relatives. This means women are more likely to work in part-time roles, which are often lower paid or have fewer opportunities for progression.  Another important factor is a divided labour market. Women are still more likely to work in lower-paid and lower-skilled jobs. Women currently make up 62% of those earning less than the living wage, according to the Living Wage Foundation. Discrimination is another cause of the gender pay gap. The Equality and Human Rights Commission (ECHR) has previously found that one in nine new mothers were either dismissed, made redundant or treated so poorly they felt they had to leave their job. This can create a gap in experience, leading to lower wages when women return to work.

Men also tend to take up the majority of the most senior roles at a company, which are the highest paid.

Who has to publish Gender Pay Gap data?

As stated earlier, it is a legal requirement for all employers (with 250 or more employees) to publish their gender pay report within one year of the ‘snapshot’ date: this year’s date being 31st March 2019.  However, whilst all employers must comply with the reporting regulations – for employers whose headcount varies they must comply with the reporting regulations for any year where they had a headcount of 250 or more employees on the ‘snapshot’ date.

What information needs to be published?

The following information must be reported by organisations:

  • Their mean gender pay gap
  • Their median gender pay gap
  • Their mean bonus gender pay gap
  • Their median bonus gender pay gap
  • Their proportion of males receiving a bonus payment
  • Their proportion of females receiving a bonus payment
  • Their proportion of males and females in each quartile pay band
  • A written statement, authorised by an appropriate senior person, which confirms the accuracy of their calculations. However, this requirement only applies to employers subject to the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Can companies be punished for a wide gender pay gap?

According to Lorna Jones, Business Reporter, BBC News, companies can’t be punished for a wide gender pay gap. But they might be punished for failing to publish their data, or for publishing inaccurate or misleading figures.

The Equality and Human Rights Commission (EHRC) is responsible for ensuring employers publish their pay gap figures. The EHRC set out plans for its enforcement policy in December. The EHRC says it will approach employers informally at first, but businesses could ultimately face “unlimited fines and convictions”.

As the EHRC is still consulting on these plans, it remains to be seen whether they can or will punish companies in this way. At the moment, there is no enforcement mechanism in the regulations on publishing pay gap data. The UK government says it will also publish sector-specific league tables, highlighting companies failing to address pay differences between men and women.

What can organisations do to reduce the Gender Pay Gap?

According to Dharishini David, Economics Correspondent with the BBC, gender pay gap reporting may not be enough: the government may need to get tougher. Ask gender pay specialists how to solve the problem and they’ll tell you there are many initiatives that companies can take – tackling unconscious bias, offering more flexible working and encouraging shared parental leave.

However, the issue doesn’t end at the office door. The experts say society needs to change.

For example, schools could encourage girls to take more STEM subjects: science, technology, engineering and maths. There should be more flexible, affordable childcare options. And men could take on more of the household chores.

However, societal change takes time, sometimes a generation, and currently we can report on the organisations gender pay gaps and look for short term internal solutions but overall society needs to change its attitude to gender, specifically in relation to employment, if we are to have pay equality across gender.

JD

 

Equality, Diversity & Human Rights Week 2019, 13-17 May

From 13-17 May 2019 the NHS will be celebrating the eighth Equality, Diversity and Human Rights Week #EQW2019. Co-ordinated by NHS Employers, #EQW2019 is a national platform for organisations to highlight their work to create a fairer, more inclusive NHS for patients and staff.

EQW2019

This week of activity aims to raise awareness of equality, diversity and human rights issues in the NHS and celebrate best practice. As the largest employer in Europe, with over 1.3 million staff, the NHS has a responsibility to remain at the forefront of the inclusion and fairness agenda for patients and staff.

Diverse, inclusive, together

The theme is diverse, inclusive, together and has been chosen to reflect the move across the health and social care sector towards even greater collaboration and integration – as reflected in the publication of the recent NHS Long term Plan. At the heart of the plan is changing culture, with a commitment towards ensuring respect, equality and diversity within the NHS.

Working together makes the NHS stronger, we meet standards, enable change and collectively invest in the creation of a diverse and inclusive NHS workforce to deliver a more inclusive service and improved patient care.

To celebrate the event, my organisation has a range of interactive and informative events across the week.  Throughout #EQW2019, we will have a daily equality and diversity bulletin, each examining a different aspect of equality and diversity; furthermore we have a video webinar on the importance of diversity in the workplace as well as an interactive Q&A session with the Trusts own Equality, Diversity and Inclusion Lead. 

Take a look at the informative video series from John Deffenbaugh (NHS Leadership Academy) who leads a discussion panel on the equality challenges faced by the NHS and the steps that can be undertake to overcome them, discussion 1 is shown below.

JD

 

Who Leads Equality & Diversity in an Organisation?

Hopefully, you do. In a large organisation the leadership of equality and diversity may take a number of different forms ranging from the Head of Equality, Diversity and Inclusion to EDI Coordinator or EDI Lead. Sometimes the role is a dedicated full or part-time role but other times it might be a secondary role of an existing manager. Frequently, with equality and diversity’s focus being on people EDI leadership often falls to the Human Resources department.

Once in post, the EDI lead needs to establish what the expectations of role will be? Are there key performance indicators? How will performance or impact be measured? What does success look like? What is the vision for equality and diversity? However, it is also worth considering that one member of staff cannot singlehandedly change the culture of an organisation. Instead, the EDI lead needs to be able to form effective teams because only through collaboration and effective project management can success be achieved. Furthermore, skills in influencing are vital because often the EDI lead will need to challenge and influence staff who he or she does not directly line manage, this is where high level skills in communication are essential.

When a clear set of goals have been agreed it is important to put together an effective action plan that can drive changes and the success of which is easy to measure. Targets set should be SMART, that is Specific Measurable Achievable Realistic and Time Bound. By using SMART targets, you have a better chance that they can be achieved because by being Specific you can focus on a and specific need which is easy to understand and not open to interpretation. Then, by making the target Measurable you know you can measure its completion or success. It may sound simple but by making the target Achievable you know that you are not asking for the impossible. When a target is Realistic it gives confidence to those who will be tasked with delivering the target that it can be done and in the timescale provided. Finally, when a target is Time-bound it gives you a clear time scale for completion and it is easy to measure whether something has (or has not) met its time scales.

The action plan below demonstrates the use of SMART targets to implement EDI actions in an organisation. RAG rating an impact column is a quick way to see where you are having the most impact and where additional support might be needed.

example action plan

The Human Rights Act

In the UK, the fundamental rights and freedoms of its population are set out in the Human Rights Act 1998 and incorporates those rights as set out in the European Convention on Human Rights (ECHR) and ensures they are covered in domestic British law.

According to the Equality and Human Rights Commission, ‘the Act sets out our human rights in a series of ‘Articles’. Each Article deals with a different right. These are all taken from the ECHR and are commonly known as ‘the Convention Rights’:

  • Article 2: Right to life
  • Article 3: Freedom from torture and inhuman or degrading treatment
  • Article 4: Freedom from slavery and forced labour
  • Article 5: Right to liberty and security
  • Article 6: Right to a fair trial
  • Article 7: No punishment without law
  • Article 8: Respect for your private and family life, home and correspondence
  • Article 9: Freedom of thought, belief and religion
  • Article 10: Freedom of expression
  • Article 11: Freedom of assembly and association
  • Article 12: Right to marry and start a family
  • Article 14: Protection from discrimination in respect of these rights and freedoms
  • Protocol 1, Article 1: Right to peaceful enjoyment of your property
  • Protocol 1, Article 2: Right to education
  • Protocol 1, Article 3: Right to participate in free elections
  • Protocol 13, Article 1: Abolition of the death penalty

The Equality and Human Rights Commission identify three main effects of the Act:

1. You can seek justice in a British court – It incorporates the rights set out in the European Convention on Human Rights (ECHR) into domestic British law. This means that if your human rights have been breached, you can take your case to a British court rather than having to seek justice from the European Court of Human Rights in Strasbourg, France.

2. Public bodies must respect your rights – It requires all public bodies (like courts, police, local authorities, hospitals and publicly funded schools) and other bodies carrying out public functions to respect and protect your human rights.

3. New laws are compatible with Convention rights – In practice it means that Parliament will nearly always make sure that new laws are compatible with the rights set out in the European Convention on Human Rights (although ultimately Parliament is sovereign and can pass laws which are incompatible). The courts will also, where possible, interpret laws in a way which is compatible with Convention rights.

JD

Workplace Bullying and Harassment

Whilst bullying and harassment in the workplace is clearly something no organisation wants to see happening in their own back yard the law can actually confuse the matter further because bullying in the workplace is not actually unlawful but harassment is. However, employers are expected to have a zero tolerance towards bullying and harassment and to take action when it has been identified to protect working relationships.

Bullying and harassment can take different forms, some highly aggressive and obvious whilst others can be more subtle and less obvious. Bullying is rarely isolated and is often a pattern of behaviour where a number of incidents demonstrate that it is taking place. For ACAS, the Advisory, Conciliation and Arbitration Service, bullying and harassment in the workplace may include:

  • spreading malicious rumours, or insulting someone by word or behaviour (particularly on the grounds of age, race, sex, disability, sexual orientation and religion or belief)
  • copying memos that are critical about someone to others who do not need to know
  • ridiculing or demeaning someone – picking on them or setting them up to fail
  • exclusion or victimisation
  • unfair treatment
  • overbearing supervision or other misuse of power or position
  • unwelcome sexual advances – touching, standing too close, the display of offensive materials, asking for sexual favours, making decisions on the basis of sexual advances being accepted or rejected
  • making threats or comments about job security without foundation
  • deliberately undermining a competent worker by overloading and constant criticism
  • preventing individuals progressing by intentionally blocking promotion or training opportunities.

Harassment should not be tolerated in the workplace and under the Equality Act 2010 it is unlawful and whilst an employer has a duty to implement the act it is not required in law to have a policy regarding bullying and harassment. That said, it is certainly good practice to do so and most human resources departments will have one in place in order to be very clear on what is and what is not acceptable so workplace bullies can be held to account.

It is often useful for an EDI lead to examine the records of bullying and harassment claims/allegations in an organisation to see if there is a wider issue that requires intervention, training or policy changes in order to reduced such incidents.

JD

Discrimination in the Workplace

Discrimination is where an individual or group of individuals are treated differently due to their perceived membership of a certain group or social category. For example, an individual or group of individuals may suffer discrimination because they are from the Travelling Community. Under the Equality Act 2010, is it unlawful to discriminate against any individual (or group) based upon any of the protected characteristics.  In the workplace, this can take many forms including, for example,  black workers not being offered the same opportunity as white workers, women being paid less than men for doing the same job but can include age, colour, convictions, height, disability, ethnicity, family status, gender identity, genetic characteristics, marital status, nationality, race, religion, sex or sexual orientation.

Direct Discrimination

Direct discrimination is where an individual is treated differently or worse than others for certain reasons, it is often easy to spot such as being refused entry to a hotel because you are gay. The Citizens Advice Bureau describes direct discrimination through the following example: ‘You’re a saleswoman and you inform your employer that you want to spend the rest of your life living as a man. As a result of this, you’re moved to a role without client contact against your wishes. This is less favourable treatment because of gender reassignment. It would still be less favourable treatment even if your employer were to increase your salary to make up for the loss of job status.’

Indirect Discrimination

However, there are other times when you appear to be treated equally and in the same way as others but it actually has a worse impact on you because of who you are. This is known as indirect discrimination where a workplace practice, policy or rule applies to all but it has a worse effect on some than others. The Citizens Advice Bureau describes indirect discrimination through the following example: ‘A health club only accepts customers who are on the electoral register. This applies to all customers in the same way. But Gypsies and Travellers are less likely to be on the electoral register and therefore they’ll find it more difficult to join. This could be indirect discrimination against Gypsies and Travellers because of the protected characteristic of race. The rule seems fair, but it has a worse effect on this particular group of people.’

Justifying Discrimination

Not all discrimination is unlawful, if an employer treats you unfairly because of who you are they might have a good enough reason but may have to justify their discrimination. The Citizens Advice Bureau describes justifying discrimination through the following example: ‘A hospital advertises a surgeon’s job for which it requires at least ten years’ experience. You can’t meet this requirement because you’ve taken time off work to care for your children. As you’re a woman, this looks like indirect discrimination because of sex. But the hospital may be able to justify this, if it can show that the job can’t be done properly without that amount of experience. This is likely to be a legitimate aim.’

JD

Political Correctness? A Tick-Box Exercise? What is Equality and Diversity?

When leading Equality, Diversity and Inclusion (EDI) in an organisation it is not unusual to face challenges and barriers to achieving your targets from a common misconception as to what equality and diversity is all about. First and foremost, equality, diversity and inclusion is about people and not a ‘tick box’ exercise to satisfy government/employer statistics or legislation.

Perhaps the most common misconception reported by equality and diversity trainers is that EDI is often said – behind closed doors of course – to be ‘just political correctness’ or sometimes ‘political correctness gone mad’. Political correctness can be defined as ‘the avoidance of forms of expression or action that are perceived to exclude, marginalize, or insult groups of people who are socially disadvantaged or discriminated against’. It is often the term ‘forms of expression’ from definitions such as this which some interpret to mean jokes or work place banter. However, where someone is offended by your words it is not open to your interpretation it is open to theirs, as such if your opinion, jokes or workplace banter offends people then it is time keep such options, jokes or work place banter out of the workplace. To those who question whether equality and diversity is merely ‘political correctness gone mad’ I would ask the question whether it is acceptable for woman to be paid less than men for the same job, for part time staff or shift workers to have less opportunities in training, for the LGBTQ+ community to face harassment at work or for those from a minority to be excluded from jobs because of a different place of birth?  Sometimes, EDI needs to focus the minds of those not affected to understand how a lack of EDI impacts those who are affected and demonstrate how they can help bring fairness to their workplace.

However, even when supported, EDI can still be viewed by some in the workplace as ‘box to tick’ exercise or just another thing on a long list of other things that they are required to do by government. This fundamental lack of understanding as to the need for EDI practices often leads to a misunderstanding of intended actions and their outcomes which in its self often leads to a compartmentalised, tick-box approach. Nevertheless, what we are talking about here is implementing good EDI practice across an organisation rather enforcing a legal obligation on the workforce. It is this perception of enforced legislation that increases the risk of compartmentalisation and a tick-box approach. As such, it is this false perception of equality, diversity and inclusion that needs removing and this is where effective communication, workforce training and raising the profile of EDI can have a positive impact on its acceptance.

Hence, improving the understanding of EDI becomes about the message and vision set out by senior leaders. Essentially, EDI is about people and it focuses on treating all people fairly and ensuring there is equality of opportunity across the workforce. Naturally, isn’t this something we should all get on-board with? Unquestionably, fairness and equality of opportunity should be a priority for every organisation. As a result, the message needs to be very clear that EDI impacts on us all whether we be employees, employers, customers or other stakeholders including the communities we serve. For these reasons, we can see why good EDI practices must be embedded in all that we do.

JD

Leading Equality, Diversity & Inclusion – A Practical Guide for Managers

I am delighted to announce that my book ‘Leading Equality, Diversity & Inclusion – A Practical Guide for Managers’ is now available on Amazon.co.uk as an ebook download for Kindle.  The origins of this book come directly from this very blog and I will be sharing aspects of the book over the coming weeks. However, in the mean time, if you are involved with workplace EDI then please take a look at the book, it has a range of proven strategies that will hep build an inclusive culture in your workplace.

The books blurb goes something like this. ‘It’s easy to get lost in the rhetoric of equality and diversity, launching initiatives, giving training and explaining your vision. However, in truth, success is about what impact these initiatives, training and vision actually have. Have your actions made the workplace better for people? Getting traction for your initiatives is vital so that you can measure the success of equality actions. This ‘how to guide’ will help managers and those with responsibility for equality, diversity and inclusion make an impact in their workplace. Firstly, it explores the Equality Act 2010 before examining how you can effectively embed good practice in the workplace through a range of strategies that will help you to build an inclusive workplace.’

JD

Implementing Equality, Diversity and Inclusion Good Practice

We need to empower our workforce to be able to effectively challenge equality, diversity and inclusion issues and drive transformative change in their own organisation. As such, Rohini Sharma Joshi, Trust Housing Association’s EDI manager, asks that organisations consider the following four principals:

  1. EDI is about people

We need to think about equality in a different way. [Your workforce] is fundamentally a people business and EDI is all about people – about treating them fairly and ensuring equality of opportunity, so these should be priorities for every organisation. We need to deliver a clear message that EDI affects us all as employees, employers, our customers and the communities we serve. That is why it must be embedded in all that we do.

  1. Cultural change needs strong leadership

Embedding EDI in any organisation requires cultural change. It requires strong leadership and buy-in from the head of the organisation and senior management to take a meaningful step forward. There are several ways to amplify this message and to develop greater understanding of EDI issues including [organisational wide EDI strategic objectives, EDI charter or an initiative similar to] the Charted Institute of Housing’s ’10 by 20’ challenge to meet 10 EDI objectives by 2020.

  1. Engage with other organisations to share best practice

There are often valuable opportunities to learn from a variety of organisations within [any] sector, who also share a passion and commitment to achieving leadership excellence in EDI.  At Trust Housing Association, we share our experience as part of our role as founding members of the National Centre for Diversity’s new ‘national patrons’ network.

Trust was the first housing association in Scotland to achieve ‘investors in diversity’ status and, more recently, ‘leaders in diversity’ accreditation. This has enabled us to participate in a wider dialogue around issues that all kinds of organisations face in creating a diverse and inclusive working environment.

There are practical things the housing sector can do to address these issues. We have developed a training programme and we regularly discuss EDI issues in team meetings and with tenants, making it clear that discriminatory behaviour is not acceptable. We also publish case studies in our newsletters that underline the message that everyone is welcome and entitled to a safe and happy life.

  1. Make an action plan – not a wish list

A systematic approach to EDI does not show instant results but instead lays the foundations for change and develops well-informed and motivated staff who help build an inclusive organisation. If there is one thing [organisational] leaders must do to tackle EDI issues in [the next decade], it is to make sure that they are incorporated into a strategic action plan – not left languishing on a wish list.

JD

Workplace Inequality – Why Good EDI leadership is in Demand

Recent improvements to workplace equality and diversity practice have helped make UK employers more inclusive but we are still some way off seeing good practice embedded in all sectors. That said, nationally, we are certainly moving in the right direction and with continued support of organisations like the National Centre for Diversity, Stonewall, Diversity UK and Employers Network for Equality and Inclusion, there is no reason why this can’t continue.

In recent years, new job roles such as Equality, Diversity and Inclusion (EDI) Coordinator, EDI Lead or Head of EDI started to appear at the larger employers as they addressed the need for an equality and diversity specialist in their organisation. Clearly, these employers are starting to see the value in having strong equality and diversity leadership in their organisations, especially in light of the poor press high profile failures in EDI receive throughout news and social media reporting.

The need for organisational leaders to take ownership of EDI is still very much in demand because inequality and unfairness in the workplace has not disappeared and as the examples below demonstrate, provided by the Trade Union Congress (TUC), we still have some way to go for true workplace equality.

  • Black workers have fewer training opportunities than white workers and black women get an even worse deal.
  • Older Workers may have been in the job for longer but this may only mean that the longer you are in a job the less training you will receive.
  • Manual workers and/or workers with few qualifications are mainly overlooked for training as those who have a lot of education and training tend to benefit from any training on offer.
  • Part-time workers and temporary workers are often left behind when training is on offer as employers place a greater value on permanent or full-time workers at the cost of temporary or part-time workers. Women make up the majority of part-time workers.
  • Workers for whom English is a second language may find that the only jobs open to them are manual / low skilled jobs. Whilst some will have qualifications, these may have been achieved in another country and employers will often overlook them. A lack of spoken English is often a barrier to moving on.
  • Shift workers are least likely to participate in learning in colleges because of working patterns, or to be offered training by their employer.  They may need to be encouraged when learning is promoted and shift times taken into account when onsite learning takes place.
  • Discrimination often plays a role when access to job and training opportunities are based on negative stereotypes and perceptions of what people can and can’t do.

JD