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Positive shifts, persistent problems: an assessment of five years of employer gender pay gap reporting
It’s now five years since the introduction of gender pay gap reporting for large private and third sector organisations. We’ve published our latest employer assessment today, which looks at the reports of 50% of Scottish employers covered by the reporting regulations. It presents an in-depth analysis of reporting in 2021 and 2022, and compares this with previous reporting to identify if progress is being made.
The reporting regulations were introduced following a UK Government initiative – Think, Act, Report – which sought to encourage employers to report their pay gap voluntarily. Of almost 300 employers who signed up, only seven reported their pay gap, demonstrating the need for mandatory reporting.
In 2018, organisations published their first reports. In this year, and every year employers have reported since, Close the Gap has completed an assessment of the extent and standard of reporting, and whether it is creating change for women in the workplace in Scotland.
Despite some positive shifts, there remain persistent problems. More employers are taking action, but the majority of that action remains small-scale and untargeted, which is simply not enough. Too many employers point to gender inequality at a labour market and society level as a reason they’re unable to create change in their organisations, instead of taking action. We found some great examples of employer action that are included in the report, and prove that progress is possible.
First Bus (FirstGroup) has taken long-term action to attract more women and has doubled its female workforce since 2017. A significant contributor to this has been a trial of part-time bus driver roles (15-25 hrs per week) which has resulted in 50% of new hires being women, up from 2%.
Natural Power have introduced a scheme to contribute to the cost of childcare for employees returning to work after maternity or parental leave, which pays returners a £400 bonus payment per month for 12 months.
Calmac Ferries has established a working group to identify barriers to working at sea faced by women, including around caring responsibilities and returning from maternity leave. They have held focus groups with female employees to understand their experiences and identify how they can improve practices.
Despite this positive change, we’re still a long way from seeing the level of consistency and commitment needed to tackle women’s inequality in the workplace.
The key findings of the assessment are as follows:
- There has been little progress made in narrowing the gender pay gap: the average pay gap of employers assessed remains stubbornly at 12%. In 2022, the vast majority of employers (80%) have a gender pay gap in favour of men, up from 78% in 2021.
- The prevalence of bonus gaps has not changed, however the average bonus gap itself has narrowed significantly from 33% to 11%. It’s possible that bonuses may be generally lower in 2022, resulting in a drop in men’s bonus pay with a smaller or no drop in women’s bonus pay. It’s also possible that organisations reduced some of their highest bonuses, which are more likely to be paid to men, due to economic uncertainty arising from the pandemic. However, as most employers did not describe any changes in their approach to bonuses, it was not possible to identify why this gap has narrowed.
- In 2021 there were high pay gaps of up to 60% in male-dominated sectors such as sport, construction, finance and manufacturing, and up to 80% in the same sectors in 2022. The average pay gap in the most male-dominated organisations in 2022 was 24%. This is double the headline average of 12%, and an increase from 21% in 2021.
- There remain very high bonus gaps of up to 100% in male-dominated sectors such as sport, manufacturing, wholesale and retail trade, and transport and storage. This aligns with existing evidence on the causes of the gender pay gap. In the wider labour market female-dominated organisations generally do not have high pay gaps.
- Since 2018 there has been a significant increase in the proportion of employers publishing a narrative report alongside their pay gap information, up from 30% in 2018 to 48% in 2022. This is positive, as publishing data alone will not lead to change. However, the vast majority of analysis (76%) was found to be of poor quality, indicating employers may still need to build their understanding of how to use their data.
- The proportion of employers that have committed to action to tackle their pay gap has almost doubled from around one in five (19%) in 2018 to more than a third (36%) in 2022. Encouragingly that the quality of actions has also increased with just over a fifth (21%) considered satisfactory and another fifth (21%) considered good. There has also been a doubling in the proportion of employers setting targets, albeit from a very low base, from 5% in 2018 to 11% in 2022.
When the gender pay gap reporting regulations were first introduced, Close the Gap highlighted a fundamental weakness: they require employers to report their data, but they do not mandate them to take action. The UK Government asserted that organisations would be motivated to take action voluntarily by their pay gap data, despite the results of the Think, Act, Report initiative indicating otherwise. It is clear that this theory of change is flawed and is simply sustaining the gender pay gap and women’s inequality at work.
Extensive evidence from Close the Gap, along with international evidence on pay gap reporting regimes, shows that reporting alone does not create change. In 2023, we’re calling again for a strengthening of gender pay gap reporting regulations to require organisations to use their data to develop and publish an action plan, and to report on progress against it. If the regulations remain the same, it also means more of the same old gender inequality for women at work.
We're hiring!
We’re looking for an enthusiastic person to lead on Close the Gap’s parliamentary work, engaging with parliamentarians and committees, and influencing legislative processes. You’ll be working in our small, busy team to influence policy around the causes of the gender pay gap by producing policy analysis, briefings and advocacy materials, and building and managing relationships with key stakeholders. Committed to an intersectional approach to women’s labour market equality, you’ll also be supporting a research project on disabled women’s experiences of work.
Purpose
To influence policy around women’s labour market equality by developing policy reports, briefings and consultation responses, and participating in strategic level policy work. To deliver Close the Gap’s parliamentary engagement work, influence parliamentary processes, and shape Close the Gap’s approach to progressing its policy advocacy priorities.
Role information
Hours:
34
hours per week
Salary: £35,050
Pension: 10% employer
contribution
Holiday entitlement: 28 days of annual leave and 13 public holidays
Location: 166 Buchanan
Street, Glasgow, G1 2LW
Close the Gap is operating a hybrid working model, with the option to work from the Buchanan Street office or from desk space in Edinburgh.
Responsible to: Executive Director
The post is fixed term, funded until 30 September 2024 with a potential extension, depending on funding.
Close the Gap values diversity in our workforce, and recognise the benefits it brings to the organisation. We therefore particularly encourage applications from racially minoritised people and disabled people who are currently under-represented in the organisation.
We’re strongly committed to enabling flexible working for staff, and will consider all options to enable applicants to work flexibly.
Application notes
Electronic applications must be submitted using our online application form which you can find on our website at https://www.closethegap.org.uk/jobs/. If you are unable to use an online application process please contact us at info@closethegap.org.uk
The deadline for applications is Sunday 29 January 2023.
You will be notified by Thursday 9 February 2023 if you have been selected for interview.
It
is anticipated that the interviews will take place remotely during
the week
commencing 20 February 2023.
New employer guidance on taking an anti-racist approach to tackling gender inequality in the workplace.
Racism and sexism are the causes of the inequality and discrimination that racially minoritised women face in their everyday lives. It’s no different in the workplace.
Gender and racial inequality at work are issues for all employers, irrespective of the diversity of their workforce. Racially minoritised women face prejudice and discrimination in the labour market every day. It’s time to act.
It’s not enough to think about gender inequality or racial inequality on their own – you need to understand how these intersect to create double discrimination for racially minoritised women.
By tackling racism and gender inequality together, you’ll also be contributing towards greater equality for racially minoritised people and women more widely in your workplace. Taking an intersectional approach is necessary to advance equality for all groups that face discrimination.
Our new guidance
Close the Gap has developed new guidance for employers on taking an anti-racist approach to tackling women’s workplace inequality. It contains information on:
- the intersection of racism and sexism in the workplace
- the barriers faced by racially minoritised women
- how to take an anti-racist approach to tackling gender inequality in your organisation
There’s also a suite of quick-read resources to enable you to:
- gather and use data to better understand your organisation
- make sure your key people know what their role is, and are supported to play their part
- take positive action to increase diversity at all levels of your organisation
- build a tailored action plan to create real change
Many employers want to take action but may not be sure where to start. Our guidance can help.
We held an online webinar to launch the guidance, where we heard from experts on gender sensitive anti-racist practice and taking an intersectional approach. The keynote address was delivered by the Minister for Just Transition, Employment and Fair Work. You can watch the webinar here.
What employers need to know about racism and sexism at work.
Racially minoritised women still face deeply rooted prejudices, racism and sexism in their lives, which contributes to their inequality at work. While racism and sexism each exist on their own, they also change where they occur in combination. This produces specific inequalities for racially minoritised women, known as intersectional inequalities.
This combination of racist and sexist attitudes and behaviours, and in-built bias in employment policies and processes, creates intersectional inequalities for women in the workplace. It isn’t just about isolated incidents of bullying and harassment between individuals, but a part of a wider problem with workplace culture, and intersectional inequality in the workplace.
A majority of racially minoritised women have experienced a combination of racism and sexism at work. Just because you haven’t received a report of racist and/or sexist behaviour or discrimination doesn’t mean it hasn’t happened in your workplace. Racism and sexism are embedded in workplace reporting systems, creating barriers to reporting. Most women won’t report incidents because they don’t think their employer will take the matter seriously, or they fear a backlash for doing so.
What employers can do?
One of the first things you need to do is acknowledge that racism, sexism and intersectional inequality are issues for all employers – regardless of whether you’ve had a report, or how diverse your workforce is. A willingness to be objective and honest about the challenges you face is key.
You can show leadership by openly acknowledging that employers have a responsibility to challenge racism and sexism, and their interaction, at work and communicating to staff the actions you will take to do this.
You can build trust by seeking honest feedback and reflections from staff, and demonstrating that you are taking action.
You can also build trust by showing that you’re willing to be accountable. This means following through with meaningful actions and progress updates on your work to deliver equality for women in your organisation.
Because racially minoritised women face specific inequalities, you can’t just combine work to tackle racism & racial inequality with work to tackle sexism & gender inequality. You need to work to understand and address the specific challenges facing racially minoritised women if all racially minoritised people, and all women, are to obtain equality. Our guidance will help you do this.
It's important to recognise that action to tackle incidents of discrimination is only part of the solution. You can use our guidance to take a gender sensitive anti-racist approach to reviewing your workplace culture and employment practices.
This means proactively identifying and tackling gender inequality and racism, which involves taking an objective view of your organisation and being honest about the challenges you face. This is what gender sensitive anti-racist practice means.
Create change in your workplace and communities
Change doesn’t happen overnight. But with commitment and sustained effort you can create real change for women, and your organisation, and become a sector leader in equality, diversity and inclusion. You’ll be able to attract and retain the best talent, making your organisation more productive, more innovative and more profitable. You’ll also demonstrate to your workforce that you’re committed to equality, diversity and inclusion, building trust and loyalty in your customer or service user base.
Employers have the ability to take meaningful action and create change for women in your organisation and in the communities you operate in. You also have a responsibility to do so.
Download our guidance now and learn how you can build anti-racist leadership on gender equality.
Guidance for employers on taking an anti-racist approach to tackling women’s workplace inequality
Supporting resources:
- Core actions for key people
- Capacity building for key roles
- Using data
- Level the playing field
- Key messages
- Action plan checklist
Watch our webinar and hear from experts on gender sensitive anti-racist practice and taking an intersectional approach.
Equally Safe at Work: New learning and development resources to address sexual harassment at work
High levels of sexual harassment remain consistent in the workplace, which has a detrimental impact on women, colleagues and the entire organisation. In our Equally Safe at Work employee survey in early adopter councils, three-quarters (75%) of respondents had either experienced or witnessed sexual harassment in the last 12 months and 70% didn’t report it to their employer. We know that women rarely report sexual harassment, and violence against women in general. This is because some think nothing will change, or that they won’t be believed. In some cases, women worry it will affect their career progression. As well, women have shared that they tried to report to their line manager, and received little to no support to make a formal report to HR.
Sexual harassment has serious physical, psychological and professional impacts for women, leading to many taking time off work, changing jobs or leaving the organisation. This is costly both to women’s careers and to employers as they lose key people. It harms women’s employment prospects, and as such is both a cause and consequence of women’s wider inequality.
It’s essential that employers take steps to address sexual harassment in their workplace. From previous scoping work undertaken, by Close the Gap, it was apparent that there was a gap in existing learning and development resources on sexual harassment that recognised it as a gendered phenomenon. Without addressing the underlying power dynamics and gender inequality inherent to sexual harassment, little change will be made in challenging it.
What we did
As part of Equally Safe at Work, Close the Gap developed a learning and development resource for employers to increase awareness and understanding of sexual harassment in different staff groups. The development of the resource was funded by Rosa and includes:
- key messages for all employees,
- guidance for line managers,
- e-learning modules for line managers,
- awareness-raising material, and
- an expert workshop for staff involved in investigating sexual harassment.
The resource aims to provide organisations with essential information on sexual harassment including, what sexual harassment looks like in the workplace and what employees can do to address sexual harassment and prevent it. It further provides employers with tools for engaging with different audiences, such as the key messages and awareness-raising material.
Line managers have an important role in tackling sexual harassment. Equipping line managers with the knowledge and understanding of how best to address sexual harassment is key for building trust in the reporting process and for creating a positive workplace culture. Our guidance provides information on the factors that facilitate sexual harassment which include gender stereotyping, everyday sexism and male-oriented workplace culture. It also outlines how to recognise the signs an employee may be experiencing sexual harassment, such as changes to the work performances or changes in behaviour. The guidance also includes ways to start a conversations and steps to take when responding to a disclosure.
For more information, you can visit the Equally Safe at Work website.
We have also developed a self-assessment tool for SMEs on sexual harassment. More information about the tool and the supporting guidance can be found here.
Register for the online launch of Close the Gap’s new guidance on taking an anti-racist approach to tackling gender inequality at work
Join Close the Gap for the launch of our new guidance on taking an anti-racist approach to tackling gender inequality at work.
This event is for managers and senior leaders, HR practitioners, and business owners who want to make sure their organisation is working to proactively identify and tackle racism and gender inequality in the workplace.
The event will include information and guidance on:
- racism and sexism in the workplace
- the barriers faced by racially minoritised women
- how to take an anti-racist approach to tackling gender inequality in your organisation
The keynote address will be given by Richard Lochhead, Minister for Just Transition, Employment and Fair Work.
There will also be a panel discussion including experts on anti-racist practice and gender inequality at work.
AGENDA:
10.00: Welcome and introductions
Anna Ritchie Allan, Executive Director, Close the Gap
10.10: Keynote address
Richard Lochhead, Minister for Just Transition, Employment and Fair Work
10:25 Presentation on new guidance for employers on taking an anti-racist approach to tackling women's workplace inequality
Lindsey Millen, Policy and Development Manager, Close the Gap
10:45 Panel session and Q&A
Chair: Gillian Neish, Principal Consultant, Neish Training
Mariam Ahmed, CEO, Amina
Aarti Joshi, Radio and Podcast Presenter
Sharan Virdee, Equality & Diversity Partner, Heriot-Watt
University
11.25: Closing remarks
Anna Ritchie Allan, Executive Director, Close the Gap
11:30 Close
Employers have the ability to take meaningful action and create change for women in their organisation and in the communities they operate in. They also have a responsibility to do so.
Register today and join us on Zoom on Thursday 1st December from 10-11.30am to learn how you can build anti-racist leadership on gender equality and drive change.
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