Action on the gender pay gap is “more urgent than ever”, according to the Chartered Management Institute.
The CMI has today published new guidance in conjunction with the Equality and Human Rights Commission on measures organisations should be taking to address pay inequality.
It stresses that women were hit worst by the pandemic, citing research showing they were more likely to work in sectors shut down by Covid, to have been furloughed, or to have borne the brunt of childcare.
The requirement for companies with more than 250 staff to report their gender pay gap was postponed in 2020 in the early days of the pandemic, and so far only 5,000 out of an eligible 12,500 have reported figures before the new deadline of 4 October 2021.
The new guidance includes a number of suggestions for companies to address inequalities in pay and other areas, including:
- Anonymising CVs and application forms
- Mentoring scheme for women to build skills
- Providing clear briefs to recruitment suppliers and executive search firms on diversity targets
- Advertising jobs at all levels as flexible from day one
- Promoting shared parental leave to all staff and enhancing statutory paternity leave if possible.
It encourages organisations to consider their future talent pipeline as students at schools, colleges and universities increasingly ask questions about gender pay equality in their chosen fields. It also reminds employers that diversity metrics are becoming increasingly important in winning supplier bids.
There are case studies including Centrica and the University of Huddersfield looking at the actions they have taken to address any gaps in pay between men and women.
These include positive action to open up opportunities to under-represented groups in the workforce and the use of apprenticeships and other educational schemes.
To make the best of data, organisations should look at key areas such as starting salaries, promotion rates for men and women, retention rates of pregnant employees and whether there are pay gaps between part-time and full-time workers.
Ann Francke, CEO of the Chartered Management Institute said the delay by companies to report their gender pay gap was “understandable”, but that action was now needed.
“Right now, there has never been a more urgent time for awareness of the gender pay gap to be put back front and centre of policy making.
“With the widespread move to more flexible working, this could provide more opportunities for women, but there are also real risks of women being left out of decision making and a reduction in the support that helps women progress their career.
Now that the economic ship is being steadied, it would be a stain on our national conscience to allow a two-tier workforce to emerge in the UK.
“As we emerge from the pandemic, managers and leaders are faced with a once-in-a-generation opportunity to build back better and more inclusively, but progress on the gender pay gap is at real risk of being taken for granted.”
Suzanne Baxter, EHRC commissioner, urged organisations to “look beyond the numbers”.
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“This is more important than ever. The pandemic has had specific effects on women in the workplace and if we want to continue the progress that has been made towards workplace equality, then action to address the causes of pay gaps needs to be a key priority,” she said.
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