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Gender Pay Gap Reporting: Data Highlights Wide Variations

Data on gender pay gap reporting is starting to trickle through, with 1308 organisations having reported so far as at the time of writing. Nevertheless, of those that are required to report, around 8000 have yet to do so. Of those that have, the data highlights wide variations.

What Is the Gender Pay Gap?

Where as the concept of equal pay looks at the difference in pay between men and women doing the same job/equal work, the gender pay gap focuses on the difference in average earnings across the organisation as a whole.

Gender Pay Gap Reporting: What The Data Reveals

The gender pay gap reporting data that has been published so far, highlights wide variations amongst different organisations and sectors. Amongst 74% of the organisations, men earn more than women. However, 15% pay more to women compared with men, whilst there is no difference in pay between the two in 11% of organisations

The gender pay gap reporting data produces an average gender pay gap of 8.2% in favour of men. However, this data is confined to organisations with more than 250 staff. The Office for National Statistics (ONS) places the gap amongst all organisations, regardless of size, at 18% in favour of men. That means that the gender pay gap amongst organisations with 250 employees or less is larger than amongst those with more than 250 employees.

Gender Pay Gap By Organisation

74% of the organisations that have reported so far, pay men more than women. These include:-

  • Virgin Money – 45.5%
  • Tesco – 2.7%
  • Barclays – 48%
  • Lloyds Bank – 42.7%
  • Royal Bank of Scotland (RBS) – 36.5%
  • Easyjet – 45.5%
  • Phase Eight Fashion – 64.8%
  • Tui Airways – 47%
  • Bank of England – 24.2%
  • Ladbrokes – 15.5% (Mean), 2.5% (Median)
  • Shell – 22.2%
  • Marks & Spencer – 12.3%
  • BBC – 9%
  • Clydesdale Bank – 36%
  • Jet2.com – 49.7% (Median), 53.5 (Mean)
  • Aldi – 11.5% (Mean), 4.8% (Median)
  • Aviva – 28.5 (Pay), 57.2% (Bonus)
  • Zurich – 27%
  • William Hill – 5.71 (Median Pay), 17.19 (Mean Pay), 17.68(Median Bonus), 55.96 (Mean Bonus)
  • Rolls Royce – 8.1%
  • Coca-Cola – 10.7%
  • Talk Talk – 14.1% (Pay), 20.7% (Bonus)
  • The Armed Forces – 0.9%
  • TSB Bank – 24% (Median Pay), 37% (Median Bonus), 31% (Mean Pay), 53% (Mean Bonus)

Some of the organisations attributed their gender pay gaps down to the fact that women are still under represented at senior management level. Other organisations cited other reasons. Easyjet, for example, stated that the main reason for their gender pay gap is that most of its pilots (who earn on average £92,400.00 gross per annum) are male, whereas most of its cabin crew (who earn on average £24,800.00 gross per annum) are female. Currently, Easyjet employs 1407 male pilots, compared with 86 female pilots. It has set a target that of its new entrant pilots, at least 20% should be female by 2020.

Barclays stated in relation to its gender pay gap that: “We know that we have more to do to continue accelerating the progression of women into these more senior roles. We recognise that tackling the gender pay gap will take time and therefore it is key that we remain focused on improving gender diversity through a workplace environment and culture that supports and empowers women.” However, the Chair of the Treasury Committee, Nicky Morgan MP, stated in response to the Barclays data: “On average, women at Barclays International are paid half as much as men. For this to be the case in 2018 is shocking. Barclays has signed up to the Women in Finance Charter, which commits signatories to supporting the progression of women into senior roles in the financial services sector. One way of reducing the gender pay gap is to increase the proportion of women in more senior roles, so it appears that Barclays is on the right track. As part of our Women in Finance inquiry, we will keep a close eye on organisations as they report their gender pay gap before the April 2018 deadline. We may call for organisations to give evidence to the Committee to hear about best practice. Financial firms should be prepared to explain any gender pay gap that they may have.

The data released so far highlights that the gender pay gap is particularly high in the financial services sector. This accords with data from PwC’s Women in Work Index, which found that the gender pay gap in this sector was 34%. This is considerably higher than the professional and technical services sector (23%), construction (20%), manufacturing (24%), health and social care (17%), education (15%), and administration and support services (12%).

15% of the organisations that have provided gender pay gap reporting data so far, pay women more than men. These include:-

  • Three Rivers District Council – 42%
  • Sweet Dreams – 46.4%
  • Yellow Dot – 35.4%
  • Biffa – 5.7%
  • Ocada – 1.9%
  • Europcar UK – 26.4%
  • Diageo – 9.8%

The nursery business, Yellow Dot, stated: “We are committed to fairness, equality and inclusion throughout our Yellow Dot Team. We are working hard to encourage men to join our Team and be promoted upwards through our organisation. For our 2017 reporting year, 7% of our Modern Apprentices were men compared to none in 2016. 41% of out Tea People were men compared to 25% in 2016. By encouraging young men into Childcare at an early age and providing them with appropriate support, training and apprenticeships, we are confident that we can increase the number who stay in the Childcare Industry and hence increase their chances of promotion and increase remuneration.”

The list of organisations that had no gender pay gap in either direction, included the British Museum.

 

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