The gender wage gap is a topic that’s constantly in the news these days and while it has come down over the last few years, there is still a persistent difference in the amount that men and women get paid.
The Institute of Fiscal Studies puts this wage gap at about 20 per cent and suggests that one of the main reasons why it stays at this approximate level is because mothers are missing out on earnings growth linked to more job experience. This is because mothers end up spending less time in paid work and more in part-time jobs than fathers do.
It was found that by the time a first child reaches the age of 20, mothers earn around 30 per cent less an hour than fathers with a similar level of education. Around a quarter of this wage gape is down to the higher propensity of mothers being in part-time instead of full-time work while that first child was growing up… and thus a lack of wage progression.
The study also revealed that it isn’t all doom and gloom where the wage gap is concerned. The gap has dropped quite a lot for those less well educated, falling from 28 per cent to 18 per cent for people educated to GCSE level. But it’s worth noting that the gap hasn’t shrunk at all in the last 25 years for those women who are the highest educated… for example, female graduates still earn around 22 per cent less an hour than their male counterparts.
Author of the report Monica Costa Dias said: “There are many likely reasons for persistent gaps in the wages of men and women which research is still investigating, but the fact that working part-time has a long-term depressing effect is an important contributing factor.
“It is remarkable that periods spent in part-time work lead to virtually no wage progression at all. It should be a priority for governments and others to understand the reasons for this. Addressing it would have the potential to narrow the gender wage gap significantly.”
As a company, if you want to focus on closing the wage gap in your place of business it’s worth sitting down to identify any of the factors that may be contributing to this particular glass ceiling. Think, for example, about your recruitment process – how do you advertise your posts and how are positions recruited for?
What about your networking opportunities, both internal and external? Are they the same for both men and women, and do your events appeal to a wide range of different types of people? You may also want to focus on the mentoring schemes you run and whether men and women have equal access to the same kind of opportunities.
You are responsible for providing equal pay within your organisation and making sure that your pay systems are transparent. Carrying out equal pay audits is a good idea so you know where you and your team stand.
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