13 November 2018

Saturday 10th November was Equal Pay Day in the UK, based on the UK’s current gender pay gap, 17.9%, it is the day after which women are said to work “for free” until the end of the year. To raise awareness campaigners encouraged women to Tweet using the hashtag #OutOfOffice, or to turn on their “out of office” notification while continuing to work to raise awareness of the day.

Pay equity is emerging as a compelling issue for business leaders today.  The conversation on equal pay is becoming very public driving employee expectation for greater transparency. Employers need to understand that perceptions of pay equity now impact brand perception and the ability to attract retain and drive employee engagement.

Closing the Pay Gap

We know that legislation in this area is gaining momentum across the globe, at the end of October Canada and New Zealand both introduced legislation tackling the issue, whilst the UK Government released a consultation on Ethnicity Pay Gap reporting, following on from its successful Gender Pay gap reporting legislation.

But employers need to get ahead of the curve, rather than waiting for legislation to mandate action.  Across most geographies we know the issues of female representation at senior levels, occupational segregation, the motherhood penalty and women’s concentration in part time work are key contributory factors. How much these impact your own organization will vary based on business location, sector and size, but it’s important to understand which have the biggest impact and consider what actions you can start to address. There is no quick fix to closing pay gaps, so the sooner you can start the better.

Posted by Ruth Thomas

Industry Principal, Curo.