The UK’s gender pay gap is steadily closing. The gap declined from 17.4% in 2018 to 15.4% in 2021 and continues to lessen, despite a slight increase from 2020 to 2021.
While the average UK salary is often dependent on age, gender also plays a significant role in how much we earn. Interestingly, in the 18-29 age group, the gender pay gap for full-time employees is now closer to zero than ever before, whilst for 30-39 year-olds, it sits at 3%.
Meanwhile, the 40–49 age group gap has slightly grown over the last few years and is currently at 12.3%.
What the Gender Pay Gap Looks Like Outside the UK
Countries that have closed 80% of the gap
A recent World Economic Forum report revealed that only nine countries have closed at least 80% of the gap:
- Iceland – 89.2%
- Finland – 86.1%
- Norway – 84.9%
- New Zealand – 84%
- Sweden – 82.3%
- Namibia – 80.9%
- Rwanda – 80.5%
- Lithuania – 80.4%
- Ireland – 80%
- Switzerland – 79.8%
US
The gender pay gap in the USA is still significant; 11 states still have a median earnings difference greater than $12,500 per annum. However, this has declined noticeably in recent years. In 2021, male workers in the US earned 18% more than women – a decrease from 26.6% in 2011.
APAC
In the APAC region, the Australian gender pay gap has decreased from 2.4% in two years to 13.8%, while the Singaporean gap, at 14.4%, is 4.3% lower than in 2018.
Full-Time Vs. Part-Time Workers
More women than men also tend to work part-time jobs (30 paid hours a week or less) to balance career and family responsibilities. These positions typically have a lower hourly rate than full-time jobs (more than 30 paid hours a week).
The gender pay gap among full-time employees in the UK is currently at 7.9%, declining just 1.6% since 2012, meaning the country still has a long way to go in terms of equal pay across the board.
Which Occupations Have the Largest Gender Pay Gaps?
According to a study by Payscale, the following jobs have the most significant pay gaps where women and men have the same qualifications as men in the same positions. Dollars have been converted into Pounds.
- Waiters and waitressing – women earn £2,767 less than men annually
- Bartenders – women earn £2,689 less than men
- Veterinarians – women earn £8,223 less than men
- Physicians and surgeons – women earn £23,056 less than men
Bridging the Gap: 3 Steps Employers Can Take
Here are a few practical steps companies can take to help narrow the gender gap:
Incentivise paternity leave
Businesses can be made more female-friendly by incentivising paternity leave for dads. If fathers have additional paternity leave, mothers can return to work sooner, work more hours and earn more money while allowing fathers more bonding time with their newborns. Sweden has been a trailblazer since 1974 as there is now a new incentive for dads to spend a full three months at home.
Fathers are granted 90 days of leave, which is allocated on a use-it-or-lose-it basis, which means that if the father does not take time off work, the couple will lose out on three months of paid leave. Shared parental leave was introduced in the UK in 2015, although not all parents qualify.
Subsidise childcare
The cost of childcare can be stressful for many families, with an average price of part-time childcare being up to £7,160 a year. The UK government covers some of the childcare costs once the child turns three, but with the nursery fees and travel costs, women on low wages often find going back to work to be a difficult and financially draining decision. Some businesses have been stepping in to provide female staff with childcare services. According to research, companies providing childcare services saw reductions in team member turnover, increased productivity, and improved quality in job applicants.
Be transparent about pay
Being open and transparent about how much you pay your staff, whether listed in the initial job description or the interview, is a good starting point. Businesses should research market rates for a role and offer a fair salary for the job they are hiring for. It is also a good idea to explain how your business determines salaries and pay increases upfront so that the candidate can make an informed decision about joining your company or not.
Ensure that promotions and rewards are fair – Disparity in pay can quickly occur when employees are offered promotions, raises, or bonuses. As a business owner, you must ensure that these are not in favour of male employees and that everyone has a fair chance of receiving a promotion, reward, or salary increase. Whether it is an outright or subconscious bias towards male employees, this can quickly get out of hand; therefore putting in place clear and concise criteria for promotions, pay raises, and bonuses will help keep things fair.
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