Challenging the Status Quo: The Fight for Pay Equality Continues Worldwide.
The Gender Pay Gap in the UK
The gender pay gap is a worldwide problem and the UK is no exception. According to the Office for National Statistics (ONS), in April 2022, the gender pay gap for full-time employees was 8.3%. While it’s gradually declining, is there more that can be done? In this article, we’ll explore what the rest of the world is doing to tackle this issue.
Understanding the Causes: The Impact of Previous Salaries on Pay Equality
One of the reasons behind the gender pay gap is relying on previous salaries when determining the level of salary to offer when taking on a new role. This could lead to maintaining or even increasing the gender pay gap for that individual, as pay received in a previous role may lack relevance to the new role, organization, or location. The World Economic Forum predicts that it will take 132 years to reach gender pay parity based on the current global rate of change. This is a sobering thought, but what can be done to improve this situation?
Global Efforts: Tackling the Gender Pay Gap Around the World
The US: Listing Salary Ranges on Job Adverts to Limit Negotiation Disparities
In the US, a number of states have introduced a requirement for employers to list salary ranges on job adverts. The largest US state, California, has joined in from January 2023, making it a requirement by law. This legislation aims to limit salary negotiations leading to much higher salary offers than others, less confident at negotiating, might get. While this is a step in the right direction, some businesses are finding ways to get around the requirement.
Denmark: Promoting Pay Transparency to Reduce the Gender Pay Gap
Denmark has been promoting visibility and information about pay differentials since 2006. This led to a reduction in the gender pay gap by 13%, according to one research study.
The UK: Liberty Hive’s Campaign for Lawful Salary History and Transparency on Job Adverts
In the UK, Liberty Hive has launched a new campaign to drive the Government to introduce laws that make it unlawful for employers to ask job applicants about their salary history and to make it a requirement to list salary details on job adverts. When salaries are displayed, response time is over 50% quicker, and a post that displays a salary receives around 67% more applications than one that does not. This demonstrates that being transparent about salary in job adverts can help companies recruit the best talent more quickly and successfully while improving pay equality.
The Need for Continued Efforts to Achieve Pay Equality for All
While the Government has launched a pay transparency pilot scheme, it remains to be seen whether there will be any legal changes regarding salary transparency anytime soon. Having requirements is just the first step in removing the gender pay gap, and businesses need to adhere to them in the spirit in which they were intended.
The gender pay gap is a complex issue that needs to be tackled at multiple levels. Legislation, such as those introduced in the US and Denmark, is a step in the right direction, but it’s not enough. The UK’s Liberty Hive campaign is a positive initiative that should be replicated globally. We need to continue to raise awareness and work together to create an inclusive and equitable workplace that values all employees, regardless of their gender.