A new report which has analysed the 2021/22 gender pay gap data has found that the gap widened for 43% of employers, compared with the previous year. Moreover, whilst the mean gender pay gap has fallen by 0.5% since 2017/18, the median gap has increased by 0.6%
Gender Pay Gap
Gender pay gap reporting came into effect for employers with 250 or more employees in April 2017. However, the 2021/22 reporting year marked the first time in 3 years that employers were required to report their data on time in accordance with the original designated deadlines. For public sector employers, the deadline was the 30th March 2022, with a snapshot date of the 31st March 2021. For private sector employers and voluntary organisations, the deadline was the 4th April 2022, with a snapshot date of the 5th April 2021.
The legal requirement for employers to report their data for the 2019/20 reporting year was suspended on the 24th March 2020, on account of the Covid-19 pandemic and the first national lockdown. As regards the 2020/21 reporting year, the deadlines were moved on the 23rd February 2021, to midnight on the the 4th October 2021.
New Report
A new report which has just been published by PricewaterhouseCoopers (PwC). Carrying out a full analyses of the 2021/22 gender pay gap data, PwC found the following:-
- The mean gender pay gap fell by 0.3% from 13.2% in 2020/21 to 12.9% in 2021/22. Accordingly, for every £1.00 earned by men, women earn £0.87. Nevertheless, whilst the mean gap has fallen by 0.5% from 13.4% in 2017/18 (when compulsory reporting was introduced) to 12.9%, the median gap has increased by 0.6% to 9.8% during the same period
- Whilst the mean gender pay gap narrowed for 53% of organisations and remaind the same for 4%, the gap widened for 43% of employers. In 2020/21, the gap widened for 41% of organisations. Hence, the number of employers reporting a widening in the gap has increased by 2% in 1 year.
- The mean gender bonus gap was 32.5% in 2021/22, a fall of 3.3% since 2017/18. Meanwhile, the median bonus gap was 16.7% in 2021/22, which represents a fall of 2.8% when compared with 2017/18
- If the mean gender pay gap were to continue to fall at a rate of 0.5% every 5 years, then it would be 2151 before there was parity (i.e 12.9%/0.5 = 25.8 x 5 = 129 years + 2022 = the year 2151)
Reaction
Commenting upon the findings of the new report, the diversity and inclusion consulting director, at PwC UK, Katy Bennett, stated: "With one in five employees planning to quit their jobs in the next 12 months companies need to be doing everything they can to attract and keep talent. A large and persistent gender pay gap could get in the way of attracting and retaining talented people. The gender pay gap is an important metric when looking at issues facing women in work more broadly. You have to take a holistic approach to make a meaningful difference to pay gaps."
FTSE Women Leaders Review
One of the contributory factors to the gender pay gap disparity is the lack of women in senior leadership roles, including at boardroom level. The Hampton-Alexander review which was set up by then Prime Minister, Theresa May, back in 2016, and which closed in 2021, was set up to address this issue. It ultimately contributed to moving from a position in which all male boards were common, to the fact that 39.1% of all boardroom positions by 2021 were held by women in FTSE 100 companies, an increase of 2.9% from 36.2% in 2020. This is up from just 12.5% in 2011
The FTSE Women Leaders Review was set up by the Government in February 2022 to build upon the work done by the Hampton-Alexander review, and has set down as one of its objectives that FTSE 350 companies should have at least 1 women in one of the top 4 board positions by 2025 (the top 4 positions being those of chair, chief executive, finance officer, and senior independent director). Currently, 164 of the FTSE 350 companies (i.e 46.9%), do not have a women in any of those 4 positions.
