Combating the Gender Wage Gap in the UK
Today is the final deadline for companies with more than 250 employees in the UK to submit their gender wage gap data.
This reporting requirement from the UK government is an incredibly positive and encouraging step for the UK Plc collectively. The transparent nature of the new reporting requirement is not only refreshing to see, but vital if progress is to be made when it comes to achieving pay equality in the workplace.
Currently in the UK, men continue to earn more than women in the workplace. According to the Office for National Statistics (ONS), men earned 18.4% more than women in April 2017.
Gender Pay Gap and Equal Pay
Of course, wage inequality isn’t just a problem in the UK; it is a global issue. That’s why we want to empower technology workers to ask for what they’re worth, while helping companies evaluate and adjust their own compensation philosophies. With this in mind, today Hired is releasing its third annual report: “The State of Wage Inequality in the Workplace.”
As a marketplace that facilitates the job-searching process from the first interview all the way to the final offer, we have unprecedented visibility into technology workers’ salaries. Candidates on our platform set a preferred salary and every interview request made by companies includes compensation information. In addition to our data this year, we also surveyed over 1,200 Hired candidates about their personal experience with wage inequality and how this problem could be solved.
When we looked at salaries for the same job at the same company, our data revealed men are still being offered higher salaries than women. In London specifically, men receive higher salaries than women 65% of the time for the same role at the same company, with an average pay gap of 7%. For comparison, companies in the United States offer women lower salaries than men 63% of the time, with an average pay gap of 4%.
Additionally, our report uncovered that more than half (54%) of women reported they had found out they were paid less than a peer of another gender in the same role – compared to 19% of men who reported the same experience throughout their careers. This explains why 21% more women than men believe gender identity affects salary.
It’s clear there are still deep-rooted issues surrounding wage inequality on gender in the tech industry today and because of that, there is more to be done.
A hopeful future for the tech industry?
The reality is that gender wage gap reporting goes well beyond a 4th April deadline. Pay transparency in the UK isn’t about being compliant, it’s about doing the right thing. That means businesses need to have transparent compensation plans in place that are continually reviewed, updated and implemented.
Not only will these policies empower women to know their value, they will break down the unconscious bias preventing women from receiving the salaries they are warranted. By incorporating consistent and unbiased processes, companies who hire technology workers can make strides to end pay inequality and make the sector an attractive proposition to all prospective candidates.
At Hired, we believe we have a responsibility to our community, our employees, our clients, and the hiring industry at large to serve as a catalyst for a more diverse, equitable, and inclusive workforce. To drive the attraction, retention, engagement and advancement of women in the workplace, we must have pay equality.
Closing the gender wage gap takes commitment, consistency and financial commitment from businesses. By working together as an industry, we can all be part of the solution.
Read our full 2018 State of Wage Inequality Report here