URGENT: Close Gender Pay Gap by 2065? Employers Must Act Now, Warns Expert

Closing the Gender Pay Gap: A Long Road Ahead

In a new study by financial advisory Isio, it has been revealed that the gender pay gap in the UK might not be closed for another 40 years if the current rate of improvement continues. Isio’s analysis of data from over 10,000 companies shows that, although progress is being made, equality in hourly pay won’t be achieved until 2065.

The Current Landscape

As of the last reporting year in 2023/24, women were paid 12.5% less per hour than men on average, marking the lowest pay gap since mandatory reporting was introduced in 2017. However, the disparity in the highest pay quartile remains significant, with 59% men compared to only 41% women.

Sectoral Disparities

The study also uncovered significant differences in the gender pay gap across sectors. While the financial and insurance industries reported an average gap of 23%, sectors like public administration and defense are leading the way towards equality.

Taking Action

To address these disparities, new regulations will require employers to publish action plans to close the gender pay gap, alongside additional reporting on ethnicity and disability. This will place more pressure on employers to prioritize gender equality and diversity in their organizations.

Words from the Expert

Mark Jones, reward and benefits partner at Isio, emphasizes the need for proactive measures from employers to accelerate change. He highlights the importance of embedding diversity and inclusion into core business strategies and developing concrete action plans to address the gender pay gap effectively.

Conclusion

Closing the gender pay gap is not just a matter of equality but also a strategic advantage for businesses looking to attract and retain top talent. By taking the necessary steps and demonstrating commitment to pay equity, employers can position themselves as leaders in the fight for gender equality.

Frequently Asked Questions

1. How long will it take to close the gender pay gap in the UK?
   It is projected to take another 40 years if the current rate of improvement continues.

2. What sectors have the highest gender pay gaps?
   The financial and insurance sectors report an average gap of 23%.

3. What can employers do to address the gender pay gap?
   Employers can publish action plans, collect accurate data, and engage employees in the process.

4. Why is closing the gender pay gap important?
   Closing the gap not only promotes equality but also gives businesses a competitive edge in talent acquisition.

5. What role do regulations play in addressing the gender pay gap?
   New regulations require employers to report on gender pay gaps and take action to close them.

6. How can businesses embed diversity and inclusion in their strategies?
   Businesses can develop action plans that go beyond reporting requirements and prioritize diversity at all levels.

7. What are the key challenges in reducing the gender pay gap?
   Challenges include underrepresentation of women in senior roles and sectoral disparities in pay gaps.

8. How can employees contribute to closing the gender pay gap?
   Employees can advocate for equal pay, participate in diversity initiatives, and support organizational efforts to address the gap.

9. What are the benefits of closing the gender pay gap for businesses?
   Businesses that close the gap improve their reputation, attract diverse talent, and enhance employee satisfaction.

10. What is the role of leadership in addressing the gender pay gap?
    Leadership commitment and action are crucial in driving meaningful change and achieving pay equity within organizations.

    Tags: gender pay gap, equality, diversity, inclusion, leadership, regulations, sectoral differences