EHRC inquiry reveals 80% gender pay gap in the finance sector
By Debbie Jones in Discrimination on Tuesday, September 8, 2009
The Equality & Human Rights Commission (EHRC) has published the results of its Finance Sector Inquiry. The report reveals a startling 80% gender pay gap in the finance sector and is based on data from a questionnaire sent to 50 companies, who collectively employ 22.6 per cent of the 1.3 million workers in the sector.
The EHRC used its statutory powers to require companies to provide evidence of their working practices and policies including pay, job evaluations and audits and found that:
- Women employees earned an average of £2,875 in annual performance related pay compared to an average of £14,554 for men - a gender pay gap of 80 per cent;
- A gap in annual basic pay between women and men of 39 per cent. However, this gender pay gap rises to 47 per cent for annual total earnings when performance related pay, bonuses and overtime are taken into account;
- Nearly all women taking up new jobs in these companies start on lower average salaries than men.
Recommendations in the report include:
- Appointing a board member to set the tone, champion the issues and drive change;
- Incorporating equality and diversity into organisational and individual objectives;
- Undertaking annual equal pay audits and publishing the data;
- Ensuring maternity, paternity and parental support schemes are in place and effective;
- Monitoring the implementation and impact of policy on gender equality.
Whether any of those measures will, in reality, reduce the gender pay gap remains to be seen. After all, the Equal Pay Act came into force 34 years ago this December and it could be argued, on the basis of the continuing gender pay gap, that it has had little or no impact upon equalising the pay of male and female employees.
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