8 ways to close the gender pay gap

25 August 2015 -

With a gender pay gap of 22% and incoming government legislation on equal pay, CMI looks at how organisations can close the gender pay gap in their business

Matt Scott

The latest research from CMI and XpertHR reveals that women earn 22% less than their male counterparts, with the gap widening to 27% for women working in companies with 250 to 999 employees.

The government is currently consulting on proposals to improve transparency surrounding gender pay differences, that will ultimately force businesses with 250+ employees to publish the gender pay gap for their company.

To help companies close this gap and comply with the incoming legislation, CMI has published a list of eight recommendations for businesses to adopt.

Eight ways to close the gender pay gap

1. Check your data processes – can you report on and analyse your gender pay data under current systems? Good data is essential.

2. Segment your workforce – you can’t fully understand gender pay data without segmenting it by seniority levels. If there is a gap, is it caused by particular grades?

3. Align pay and pipeline data – look at the talent pipeline and assess if there are barriers stopping women from reaching senior roles.

4. Track changes – one year’s data is only a snapshot. Use previous years’ data to analyse trends and identify areas for action.

5. Set targets – it’s vital that there are clear targets for change across the business. Use them to monitor progress and drive change.

6. Review starting salaries – men often negotiate higher starting salaries, so make sure recruitment processes aren’t creating a gender pay problem.

7. Start reporting – show your commitment to fairness for all employees by publishing gender pay data before the legislation comes into effect.

8. Change outdated cultures – the working environment has to be more inclusive. Flexible working, support for parents and carers and mentoring by senior managers are fantastic ways to retain and develop employees – of both sexes.

Visit www.managers.org.uk/mindthepaygap for further information.

Join the conversation online by following @cmi_managers and @XpertHR, and using the hashtag #mindthepaygap