The gender pay gap is a topic that comes up often, so we thought with this year’s reporting due, it would be a good opportunity to shed some light on what the gender pay gap is, and what you should be focusing on.
What is the gender pay gap (GPG)?
In the UK, all employers with more than 250 employees are legally required to publish their gender pay gap (GPG) data annually. The gender pay gap measures the difference between the average earnings of men and women within an organisation or workplace.
It’s crucial to distinguish this from equal pay, which ensures men and women receive the same compensation for performing the same or equivalent work, which is a legal requirement in the UK covered by the Equality Act 2010.
Companies can’t be punished for the results of their GPG, but they can be punished for failing to publish their data, or for publishing inaccurate or misleading figures.
What does the data tell us?
Generally, there are two figures you should be looking at – the mean and the median.
The mean adds up the hourly pay of all male and female colleagues and divides it by the number of employees to give you an average hourly rate for the whole organisation. This can often be skewed by your senior leadership team, or those who are the highest paid.
The median is calculated by finding the middle value of employee wages. This gives you a picture of the “average” worker but hides the outliers at the very top and bottom of earnings.
Understanding both the mean and median gender pay gap figures is essential for a comprehensive analysis of pay disparities within your workplace and can help you to better understand potential inequalities.
A small part of a bigger picture
Whilst the gender pay gap is important, and for many organisations a legal requirement, it doesn’t tell the whole picture.
Often, especially in smaller organisations, the gender pay gap is heavily influenced by the most senior-held positions.
Example one – elevated gender pay gap (over 10%)
The executive team is entirely made up of men.
They are the highest earners within the organisation and therefore the data is skewed creating an elevated gender pay gap.
What you don’t see is the support on offer to women
While a pay gap may exist due to women being in lower-paid roles, the workplace culture can still be supportive and inclusive, prioritising women’s advancement to achieve equality in senior positions; for example, by offering strong policies such as menopause, fertility, and maternity, along with flexible working options for all employees, enabling a healthy work-life balance while excelling in their roles.
Example two – favourable gender pay gap (-10% to +10%)
Women are predominantly in lower-grade positions, but the CEO is a woman and so are other ‘top earner’ executives which artificially balances the pay gap data.
As a result, presenting that on ‘average’ women are being paid more than men across the business.
What you don’t see is the limited support
While some women may occupy senior positions, the overall workplace culture can be toxic, creating an environment where women struggle to feel truly valued or heard.
When only a small number of women hold senior leadership roles, it often results in their exclusion from key decision-making processes and adds to the lack of representation which can hinder professional growth and career progression opportunities.
Although these look like extreme examples, they both demonstrate that gender pay gap data neglects to show the full picture.
GPG is purely about financial reporting and doesn’t highlight the great initiatives and support offered to shift the dial on gender parity by creating a fair and inclusive culture for women.
So rather than focusing on your gender pay gap score, what can you do to better support gender equity in the workplace?
Understand your data and celebrate the positives
If your gender pay gap score isn’t what you had hoped, then dig a little deeper into the data to better understand the cause of the disparity.
Many companies do a full gender pay gap report now, which outlines not only their gender pay gap data but also the great initiatives and support they have in place for women.
This is a good way of demonstrating your commitment to gender equity and highlighting the support on offer for women looking to join your organisation.
Embed an inclusive culture
Do what’s right for your people. For example, part-time working can negatively impact your GPG score, but for organisations and their employees having part-time or flexible working arrangements is a hugely appealing benefit.
Flexible working better supports all colleagues to manage their work-life balance.
Think about what supports your employees best and focus on getting this right first.
Nurture talent and provide opportunities
Helping to develop the talent you already have within your organisation, into leaders is a fantastic step and one that will also positively impact your gender pay gap score.
Career progression and work-life balance are often cited as reason why women leave their jobs.
Whilst obviously, we all want to see more women in senior leadership roles this isn’t a quick-fix that can be implemented.
Utilise the WISE Gender Equity Framework
Everything we do and offer at WISE is grounded in our Gender Equity Framework (GEF); a holistic model designed to advance EDI within STEM organisations.
The framework is built on five pillars – data, attraction, progression, retention and engagement – that collectively address key aspects of EDI in the workplace.
The GEF provides a clear strategic approach to managing and developing EDI practices, ensuring that every stage of the employee journey is inclusive and supportive.
As a WISE member, you gain access to the GEF HR diagnostic tool, an invaluable resource that offers a detailed overview of your organisation’s EDI data, practices, and culture.
The tool highlights areas for improvement and delivers actionable recommendations on best practices, which include specific ways WISE can further support your organisation (i.e. tailored training and consultancy opportunities), all captured and shared via an extensive report.
- To find out more about the WISE Gender Equity Framework, visit our website.
- If you’re not already a WISE member, then look at our membership options on our website.
Membership gives you access to all our fantastic resources, products and services to utilise as well as expert advice on equity, diversity and inclusion in the workplace. If you’d like more information, please email us at wise@theiet.org.
- You can find all gender pay gap data as reported to the UK Government