Deep dive: equal pay vs the gender pay gap

How is that different to closing the pay gap?

As with equal pay, in order for managers to identify disparities, and take action to address any issue, reporting and analysis is crucial to tackling the gender pay gap.

Kate Palmer, HR advice and consultancy director at Peninsula, says: “Requiring large employers to report this data is a good step in the right direction. As is said, what isn’t known, won’t get fixed. Fixing the spotlight on those organisations that are falling down in this will encourage them to do better and make them accountable for the decisions that have been made.”

But be warned: understanding the reasons behind any gender pay gap is a complex, and sometimes controversial, issue. Kate explains that the reasons behind the gap stems partly from traditional gender roles, which place greater emphasis on women as caregivers: this often results in women choosing to reduce their hours and responsibilities, leading to lower pay and opportunities. Factors such as the menopause can also make women less likely to apply for promotions and more likely to leave the workforce.

The role of remote working

At the beginning of the Covid crisis, there were hopes that the wider adoption of remote working might remove the gender divide. However, experts are now warning the danger of the hybrid working model is that men will choose to go to the office and women will stay at home, their careers suffering as a result of reduced visibility.

“Our own recent research with The Work Foundation found that … despite the huge recent shift by many to hybrid working there is a mismatch between attitudes of some managers and their teams,” explains Ann Francke, chief executive of CMI.

“There is a real perception of ‘office culture’ and some managers are unwilling to implement hybrid-working practices. Our results also suggest women are less comfortable than men in discussing a remote work request with their manager. Women are also less likely than men to feel their organisation is inclusive of remote workers. This needs to change.”

Employers must therefore carefully monitor their new working policies to make sure women aren’t disadvantaged and have the same opportunities to progress into management and leadership roles if they so wish. CMI’s ‘Making Hybrid Inclusive’ employer guide outlines some key actions, including continually communicating and consulting with staff; experimenting with remote working models to find what works for their organisation/teams; implementing a right to disconnect to ensure employees don’t burn out (Portugal has just made it illegal to text staff out of hours); and acting as a supportive role model by also embracing remote or flexible working practices.

But the most important thing to remember is that equal pay and closing the gender pay gap is about more than just compliance. In an era where company culture and social responsibility are key deciding factors for jobseekers, pay systems that are transparent and reward the entire workforce fairly send out a positive message about an organisation’s values. Not only will that result in organisations attracting the best talent, it will reduce staff absence and improve retention. It’s a win-win for employers and society.

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