Women over 40 in the UK will not see the gender pay gap closed before they reach state pension age, according to research from the Fawcett Society to mark ‘Equal Pay Day’.
Its report – Unlocking flexible work – blames a lack of flexible working in well-paid jobs and the fact many women are forced to exchange flexibility for less equal working arrangements so they can balance work with caring responsibilities for a persistent gender pay gap.
Equal Pay Day marks the day on which women effectively ‘stop’ earning compared to their male colleagues each year. This year it is two days later than in 2022, marking a very slight narrowing of the gap.
On average, working women take home £574 less than men every month, or £6,888 per year. At the current rate of change, the gender pay gap will not close until 2051, the Fawcett Society predicts.
Equal Pay Day 2023
Less than a third of job ads mention flexibility
Its research showed that many women are accessing flexibility through lower-paid, less secure work such as part-time jobs or zero-hours contracts – 27% of women reported that they worked part time compared to 14% of men.
Men were more likely to have access to more desirable forms of flexible work, such as working term-time only (21%); working as part of a job share (18%); or working a number of set hours flexibly across the year (15%). One in 10 men were able to work ‘to commissioned outcomes’ rather than set hours, it found.
The gender equality charity also found that more than three-quarters of women (77%) would be more likely to apply for a job that advertises flexible working options. Recent research from Timewise, however, showed that less than a third of job ads mention flexibility.
The Fawcett Society’s predictions are more optimistic than those from business advisory firm BDO, which forecast 63 years until the gender pay gap closes, based on analysis of gender pay gap reports published by those required to do so by legislation.
Jemima Olchawski, chief executive of the Fawcett Society, said: “The Chancellor is delivering the Autumn Statement today, but can he really build a thriving economy without closing the gender pay gap? The fact is, if we want a thriving economy, the gender pay gap must close, and to achieve this, our government must make flexible work the default.
“Women must be allowed to progress with the flexible working arrangements they require, and men must step up and take on their fair share of caring responsibilities and household tasks. Flexible work must be the norm for both men and women at work.”
Legislation that will give workers the right to request flexibility from day one is likely to be enacted next year, but Olchawski added that “deep cultural change” is needed.
“Right now, accessing flexible work is a matter of negotiation with your employer. Our report clearly shows that this is a process that favours men and bakes in existing inequality. Women shouldn’t be penalised or disadvantaged because they need to work flexibly and they certainly shouldn’t be locked out of roles they are qualified and keen to do.”
Harriet Harman, the charity’s chair, said the slow rate of change in the gender pay gap is “unfair and unjust”.
“For too long, women have put up with less fair and less equal working arrangements in exchange for flexibility. We need urgent action to ensure women are allowed to work to their full level of skills and experience.
“Making flexibility the norm will make it easier for women to get the flexibility they need, and also normalise men taking on their fair share of caring responsibilities. We cannot afford to wait. “
Ciara Harrington, chief people officer at learning technology company Skillsoft, said employers needed to prioritise equal pay initiatives.
“To drive change, organisations need to establish equitable compensation programs and pay philosophies that promote and continually monitor the decision-making process,” she said.
“Supplementary policies and practices such as flexible working arrangements, mentorship and coaching, and equitable parental leave to encourage fairness and eliminate gender-based pay disparities will further help spur progress. Organisational data is also a gold mine of information that cannot be overlooked.
“For example, business leaders can identify where continued education and training are needed by reviewing compensation cycles and behaviours. Above all, businesses need to say less and do more – real change comes from concerted effort and action.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
HR opportunities in professional services on Personnel Today
Browse more HR opportunities in professional services
